Dividend Investor Making $14,000 a Month Shares His High Risk-Reward Portfolio — Says Income Is 'Pretty Stable'

Dividend stocks are gaining attention because of their ability to provide downside protection during difficult times. Data shows that from Dec. 29, 1989, to July 31, 2023,  the S&P 500 Dividend Aristocrats — companies with at least 25 consecutive years of dividend growth — outperformed the S&P 500 69.34% of the time in down months.  

A few months ago, someone asked income investors on r/Dividends — a community on Reddit with over 680,000 members — whether anyone had $1 million invested in dividend stocks. The question received over 200 comments, with many investors sharing their portfolios and income reports.

Don't Miss:

• BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.
• Unlock the hidden potential of commercial real estate — This platform allows individuals to invest in commercial real estate offering a 12% target yield with a bonus 1% return boost today!

An investor said he had $1 million invested in dividends and collected about $14,000 a month in income. Despite an extremely high yield, the investor said his income was "pretty stable" but he was aware of the risks involved.

"Been over a year, so far, so good. Not too concerned, as I can recalibrate at a moments notice. I'm not ignorant to the fact that everything is performing well right now."

The investor said at the time that he knew the overall market was on a bullish trajectory and his portfolio was not a "typical" one.

"High risk high reward. Split share funds, covered call funds etc not typical low dividend stuff. I realize we are in a major bull market so I will recalibrate if necessary."

 The investor also had several split share funds in his portfolio. These funds divide their portfolios into two share classes — preferred shares for dividends and capital shares for growth potential.

Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100.

Let's take a look at some of the key holdings in this portfolio.

The Simplify Volatility Premium ETF 

The Simplify Volatility Premium ETF SVOL generates income by shorting the CBOE Volatility Index and betting that volatility will remain stable. Since the broader market tends to go higher in the long term, investing in this ETF suits those looking for stable income checks.

JPMorgan Nasdaq Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF JEPQ is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. 

The Defiance S&P 500 Income Target ETF 

The Defiance S&P 500 Income Target ETF SPYT invests in ETFs that track the S&P 500's performance and sells daily credit call spreads on the Index. This means the ETF sells a call option and buys another one at a higher price, earning income from the premium received. The ETF has a distribution rate of about 20% and pays monthly.

See Also: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!

Life & Banc Split Corp

Life & Banc Split Corp. gives investors exposure to some of the top Canadian insurance companies and banks. It has a distribution rate of 14%. 

Brompton Split Banc Corp

Brompton Split Banc Corp. invests in top Canadian banks. It has a monthly distribution rate of 12.4%. Royal Bank of Canada, National Bank of Canada, Bank of Nova Scotia, and Bank of Montreal are among its top holdings. 

Global Dividend Growth Split Corp.

Global Dividend Growth Split Corp. is a Canadian fund that invests in global dividend growth companies. It has a distribution rate of over 11%. About 75% of its portfolio consists of US companies. Apple AAPL, American Express AXP, Boston Scientific BSX, Welltower WELL and JPMorgan JPM are among its top holdings. 

Dividend Growth Split Corp

The Dividend Growth Split Corp has a dividend yield of about 18%. Its portfolio mostly consists of large-cap Canadian companies. Some of the top holdings include Constellation Software, Dollarama, Waste Connections (NYSE WCN), and Manulife Financial MFC , among others. 

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.

Looking For Higher-Yield Opportunities In A Shifting Market?

The changing interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.