Early Retiree Earning $20,000 a Month in Dividends Shares His Top 9 Stocks - 'Simply Taking a Chance On Leveling Up My Life'

Dividend stocks have played a key role in overall market returns in the past. Data shows that from March 1994 through March 2024,  dividends and dividend reinvestment accounted for about 47% of the total return of the S&P 500. 

Last May, someone asked dividend investors on Reddit to share their monthly dividend income goals. The question drew strong engagement and many investors shared their detailed income reports, but one comment stood out.

An investor said he collected about $20,000 a month in dividend income and aimed to take this to $30,000 a month.

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"Goal is $30k/mo min, since that’s going to be roughly $20k/mo after taxes. $22k last month, $20k this month. Portfolio is just shy of $600k and has a total gain over the last year of about $25k," he said. 

However, the investor's portfolio had several risky covered call dividend ETFs. He said in a comment that he was aware of the risks involved. He also mentioned that he had no Roth or tax-deferred accounts and had retired early.

"I think of this a different way. If it all goes to zero, I’ll still be OK. I’m simply taking a chance on leveling up my life. Most folks don’t have that kind of money. That doesn’t mean that I’m right or wrong, or that the more mainstream folks are right or wrong. I simply believe the reward is worth the risk."

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

YieldMax COIN Option Income Strategy ETF

YieldMax COIN Option Income Strategy ETF CONY was in the portfolio of the investor who collected about $20,000 a month in dividends. 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. The fund has a distribution rate of 105% and pays monthly. CONY is down 42% over the past 12 months.

YieldMax Ultra Income ETF 

With a distribution rate of 84%, the YieldMax Ultra Option Income Strategy ETF ULTY generates income from a portfolio of covered call strategies. It's down 57% over the past  year.

YieldMax MSTR Option Income Strategy ETF 

The YieldMax MSTR Option Income Strategy ETF MSTY generates income by selling call options on MicroStrategy MSTR stock. Its distribution rate is about 106%.

Trending: 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. Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).

Ecopetrol SA

Colombian petroleum company Ecopetrol EC has a dividend yield of 33%. The stock is down 17% over the past 12 months.  Earlier this month, Colombia’s President Petro reportedly called on the company to sell its fracking operations in the US.

YieldMax NFLX Option Income Strategy ETF 

The yieldMax NFLX Option Income Strategy ETF NFLY generates income by selling call options on Netflix NFLX. It has a distribution rate of 76%. Over the past one year, the fund is up 3%, while Netflix shares have gained over 80% in the same period.

YieldMax MRNA Option Income Strategy ETF 

The YieldMax MRNA Option Income Strategy ETF MRNY generates monthly income by selling call options on Moderna MRNA. The fund has a distribution rate of 101%.

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Petroleo Brasileiro 

Brazilian petroleum company Petroleo Brasileiro ADR PBR was also a part of the portfolio. The stock yields about 20%. Earlier this month, data from the company showed its production fell 10.5% in the fourth quarter year over year. 

Altria

Altria MO was another high-yield dividend stock in the portfolio. Last month, the tobacco products company reported Q4 results that came in ahead of Wall Street estimates. In 2025, the company expects annual earnings growth of 2% to 5%.

Alliance Resource Partners

Oklahoma-based Alliance Resource Partners ARLP has a dividend yield of over 9%. The stock is up 31% over the past year. The company's revenue in the fourth quarter fell 5.6% year over 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. 

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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).

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