Dividend Investor With $1.05 Million In Stocks And $36,600 Annual Payout Shares Portfolio – 'Could These Picks Set You Up for Life?'

For many investors, the strategy is simple: invest once and enjoy the rewards for a lifetime. Dividend investing, particularly, has long been a popular approach for those who want a steady income stream.

By carefully selecting dividend-paying stocks, investors can create a portfolio that grows in value in the long run and generates consistent payouts. This strategy mainly appeals to those who want to achieve financial independence, retire early, or enjoy the fruits of their investment without micromanaging their portfolio.

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One investor who has successfully built a portfolio worth $1.05 million in dividend-focused stocks has shared his strategy and top picks in Reddit’s r/Dividends community.

With an annual dividend payment of $36,600 and growing because he’s reinvesting through a dividend reinvestment plan, his portfolio is a mix of growth stocks, low-dividend payers, high-yield dividend stocks and ultra-high-yield investments, each chosen to balance risk and reward.

Let’s take a closer look at the investor’s dividend-paying picks in his portfolio.

Investor With $1.05 Million Portfolio and $36,000 In Annual Payouts Shares His Top Dividend Stocks 

Johnson & Johnson

Johnson & Johnson JNJ is a healthcare giant with a diversified portfolio of medical devices, pharmaceuticals and consumer health products. With a dividend yield of 2.5%, JNJ has a proven dividend increase history.

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Exxon Mobil

Paying around 3.67% in annual dividends, Exxon Mobil XOM is one of the leading gas and oil companies in the world.

Iron Mountain

Real estate investment trust Iron Mountain IRM pays 2.83% in annual dividends and specializes in data storage and information management.

Bank of America

Bank of America BAC is a leading financial institution with a strong presence in investment banking and retail. With annual dividend yields of around 2.26%, BAC is a solid pick for those seeking exposure to the financial sector.

L3Harris Technologies

With a 2.30% dividend yield, L3Harris Technologies LHX is a contractor focusing on electronic systems and communication. LHX benefits from strong government contracts, making it a reliable pick.

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NextEra Energy

NextEra Energy NEE is a renewable energy giant focusing on wind and solar power. The company pays 2.97% in dividends per year.

Synovus Financial

Generating 2.82% in annual dividend yield, Synovus Financial SNV is a regional bank offering financial services for the Southeastern U.S. area.

Taiwan Semiconductor Manufacturing Company

Taiwan Semiconductor Manufacturing Company TSM is the world’s largest semiconductor factory, producing chips for leading tech companies. TSM pays a dividend yield of around 1.22% yearly.

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High-Yield Dividend Stocks

Altria Group

Altria Group MO, a leading tobacco company, is among the high-paying dividend companies, with an annual yield of 7.71%.

Pfizer

Pfizer PFE is a global pharmaceutical company known for its medications and vaccines. PFE has a 6.74% annual dividend yield.

Toronto-Dominion Bank

Toronto-Dominion Bank TD is a Canadian bank with a significant presence in the U.S. Paying 4.93% in dividends per year, TD is a stable financial institution with a strong dividend history.

AT&T

Paying 4.36% in dividends, AT&T T is a giant in telecommunication and media. While the company has fierce competition, its high dividend yield makes it appealing for investors seeking high, regular payouts.

Bank of Nova Scotia

Bank of Nova Scotia BNS is a Canadian bank present all over the world. With a dividend yield of 5.83%, BNS offers exposure to emerging markets.

Verizon

A leading telecommunications company in the U.S., Verizon VZ pays investors around 6.65% in annual dividends.

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Ultra-High-Yield Dividend Stocks

Annaly Capital Management

A mortgage REIT that invests in mortgage-backed securities, Annaly Capital Management NLY is an ultra-high-paying dividend company, with yields of around 12.44%.

AGNC Investment Corp

Another mortgage REIT working with mortgage-backed securities, AGNC Investment Corp AGNC is a favorite for investors looking for high-yield dividends. AGNC pays investors 14.03% in dividends per year.

Hercules Capital

Hercules Capital HTGC is a [business development company] BDC that provides financial help to small- and mid-sized companies. HTGC pays 8.73% in dividends.

TPG Specialty Lending

TPG Specialty Lending TSLX is a BDC specializing in middle-market lending. The company offers an annual 8.29% dividend yield to investors.

New Mountain Finance Corporation

Another BDC focusing on middle-market companies, New Mountain Finance Corporation NMFC pays investors around 11.16% in dividends.

XPLR Infrastructure

One of the highest dividend-paying companies, XPLR Infrastructure, LP XIFR is a renewable giant specializing in wind and solar projects. XIFR generates around 42.26% in dividend yields per year.

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.

Interest Rates Are Falling, But These Yields Aren't Going Anywhere

Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.

Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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