Dividend Investor Earning $44,000 a Month Shares His High-Yield Portfolio —'I Live Life, Save a Little'

The volatility in AI stocks and uncertainty amid new trade policies and tariffs are expected to increase the appeal of safe and quality dividend stocks in the coming weeks and months. Data shows that dividend stocks posted about 8.8% in annualized returns between 1972 and 2012, compared with just a 1.6% return for non-dividend stocks.

A few days ago, a dividend investor shared his monthly income milestone on a Reddit community of investors focusing on high-yield options funds. He said he earned about $44,000 in January, and aimed to reach $50,000 per month by 2026.

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"I’m retired. Dividends are just basically one of my paychecks. I mostly pay bills, live life, and save a little when I can," he said in a separate comment a couple of years ago on the social platform. His post history on Reddit shows his dividend income has increased over the years. In January 2023, he raked in about $25,000 a month.

His latest portfolio screenshots showed his portfolio consisted of risky covered call ETFs with high yields. These funds are notorious for their net asset value erosion over time and volatility. 

Nonetheless, it would be interesting to see what this investor was holding. Let's begin.

YieldMax PLTR Option Income Strategy ETF

Number of Shares: 2,200

The YieldMax PLTR Option Income Strategy ETF PLTY makes money by selling call options on Palantir PLTR. It has a distribution rate of 43%. The fund is up 74% over the past one year, while Palantir shares have gained a whopping 365% in the same period.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

YieldMax COIN Option Income Strategy ETF

Number of Shares: 5,500

YieldMax COIN Option Income Strategy ETF CONY accounted for about 8.2% of the total portfolio. The fund makes money by selling call options on Coinbase Global COIN. CONY is a risky investment since its upside potential is capped due to the covered call strategy and its performance is linked to a single company operating in the volatile crypto industry. 

Roundhill S&P 500 0DTE Covered Call Strategy ETF

Number of Shares: 2,000

Roundhill S&P 500 0DTE Covered Call Strategy ETF XDTE generates income by selling call options on the S&P 500 Index that expire on the same day, known as 0DTE options. The ETF is suitable for those looking to generate short-term income by focusing on daily market movements. It made up about 10.9% of the total portfolio.

Roundhill Innovation-100 0DTE Covered Call ETF 

Number of Shares: 2,000

Roundhill Innovation-100 0DTE Covered Call ETF QDTE generates income via a zero-day-to-expiration options strategy on the Roundhill Innovate Index. This strategy involves selling call options that expire the same day. The fund has a distribution rate of 25% and pays weekly. 

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The YieldMax MSTR Option Income Strategy ETF 

Number of Shares: 2,200

The YieldMax MSTR Option Income Strategy ETF MSTY generates income by selling call options on MicroStrategy (MSTR) stock. Its distribution rate is about 108%.

YieldMax NVDA Option Income Strategy ETF

Number of Shares: 3,000

YieldMax NVDA Option Income Strategy ETF NVDY makes money by selling call options on Nvidia NVDA. Recently, the ETF has gained popularity amid the buzz around Nvidia. The fund has a distribution rate of about 52%. NVDY suits investors who believe in Nvidia's long-term potential but want to hedge against possible declines in the chipmaker's shares.

YieldMax AMZN Option Income Strategy ETF 

Number of Shares: 2,000

The YieldMax AMZN Option Income Strategy ETF AMZY generates income by selling call options on Amazon AMZN. The fund has a distribution rate of about 26.5%. AMZY is down 13% over the past 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. 

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.