Investor With $1M Portfolio Earning $61,000 In Dividends Reveals 10 Top Picks, Says 'I'm Considering Aggressive Growth – What Would You Do?' - Archer Aviation (NYSE:ACHR), C3.ai (NYSE:AI)

For many people, investing in stocks is a major way of securing their financial future and eventually building wealth. Whether it’s saving for retirement, growing a nest egg, or paying for their children’s education, investing can turn their savings into financial security.

Over the years, countless people have achieved financial success by employing strategies like index funds, dividend investing and diversified portfolios.

One such individual is a 45-year-old tech middle manager living in a high-cost-of-living city. He and his wife have diligently saved their money to build a brokerage portfolio that just hit the $1 million mark.

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“Wife and I are diligent savers and are hitting the magical $1 million brokerage investments in Jan 2025. This is currently $60,000 in cash, $50,000 in employer’s stock (stable) and $900,000-ish in boring dividend funds yielding $61,000 dividends per year,” he wrote on Reddit.

His portfolio includes a combination of dividend stocks, ETFs and funds, such as SPDR S&P 500 ETF Trust SPY, Pfizer Inc. PFE and Realty Income Corporation O.

But now, with retirement on the horizon and a child heading to college in six years, he’s considering changing his strategy.

“Should I not fix what is not broken and maintain the current course and cruise for another two to three years, keep the existing portfolio as is and let dividends DRIP, new savings go into aggressive growth gambles like Joby Aviation Inc. JOBY, Archer Aviation Inc. ACHR, C3.ai Inc. AI? Or should I cut back on the dividend portfolio to maybe $700,000 (or whatever the magic number is) and position for growth above that with a mix of aggression and growth, cancel [dividend reinvestment plan] and invest dividends in growth too?” he asks.

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Let’s take a closer look at 10 of the dividend-paying stocks and funds in the investor’s portfolio and Reddit’s suggestion regarding a change in strategy.

Investor With $1 Million Portfolio Shares His Top 10 Dividend Stocks

SPDR S&P 500 ETF Trust

Paying a dividend yield of around 1.5%, SPY tracks the S&P 500. This ETF is a popular choice for investors looking for broad exposure to the U.S. stock market.

Pfizer Inc.

Pfizer is a major pharmaceutical company known worldwide, offering a dividend yield of 5% per year. People like PFE because of its stability and its strong history of paying dividends.

Altria Group Inc.

Altria Group MO generates a dividend yield of around 9% and is known for its tobacco products. MO is a favorite among investors because of the above-average dividends it pays.

Ares Capital Corporation

Ares Capital Corporation ARCC invests in small- and middle-market businesses and offers a dividend return of around 10%.

British American Tobacco

Another tobacco giant, British American Tobacco BTI pays a high dividend yield of around 8% per year, and investors like it because of its great cash flow.

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JPMorgan Equity Premium Income ETF

JPMorgan Equity Premium Income ETF JEPI focuses on creating income through covered calls. JEPI has an annual dividend yield of 9%.

Realty Income Corporation

O is a REIT that owns and rents out buildings like drugstores and grocery stores and has a dividend yield of around 5% per year. The REIT is famous for paying monthly dividends, making it a go-to choice for investors looking for reliable income.

Kinder Morgan

An energy infrastructure company, Kinder Morgan Inc. KMI pays investors around 4.14% in dividends per year. KMI is favored because of its stable cash flow and solid dividend payments.

Verizon Communications

Verizon Communications VZ is a top telecom company that offers wireless and internet services. VZ pays investors a dividend yield of around 6%.

PIMCO Dynamic Income Fund

Paying 11% in dividend yield per year, PIMCO Dynamic Income Fund PDI is a closed-end fund that invests in various kinds of bonds. PDI’s focus is to generate high income, which is why it offers a large dividend.

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Should the Investor Shift to Aggressive Growth? Reddit Advises

When the investor shared his plan to shift toward a more aggressive strategy, Redditors weighed in with differing advice. Some advised the poster to stick with what it works, including this commenter.

“Your strategy has served you so well, and you’re only 45! Keep it up!” he wrote.

Redditors also suggested keeping most of the portfolio in dividend-focused stocks and ETFs while moving a smaller portion into growth stocks.

“If you make a change, option B is best. But maybe do it with only 50% of your future contributions, keeping your nest egg and the other 50% in the tried and true,” a comment reads.

Finally, a few Reddit members advised the investor against yield chasing and recommended selling some of his higher-risk holdings in favor of more stable stocks.

“Sell all of your yield-chasing, principal-eroding stocks/ETFs and put them into iShares Core Dividend Growth ETF DGRO or JEPI/JPMorgan Nasdaq Equity Premium Income ETF JEPQ if you still care about cash flow,” a Redditor suggested.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.