Top 8 Stocks and ETFs

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Dividend investing is growing in popularity as investors seek stability and consistent income. Reliable dividend stocks reward investors even when times are tough. Shares of companies that regularly raise their dividends outperformed those that don’t from 1978 to 2023, according to data from BlackRock.

But which dividend stocks can help you achieve a decent level of risk-free income? Let’s look at a success story for some ideas.

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About two months ago, a dividend investor on r/Dividend (a community of over 580,000 members on Reddit) said he had hit a dividend income benchmark of $1,000 per week after 15 years of investing.

The investor said his portfolio, which generates $1,000 a week, is worth $927,892. This makes it a strong 5.6% yield portfolio. Asked how he amassed this investment wealth, the Redditor said he’s owned a small business (IT consulting) since 2015 and that “every spare penny” he’s earned has been invested in stocks, bonds, CDs, and HYSAs.

“I clear about $250,000 a year from my business (before taxes),” he added.

It is also important to point out that the investor said he is single and has no mortgage or debt.

Someone asked the investor how much he contributed to the investments each month. Here is the answer.

“About $5,000 a month, give or take — I’ve been able to do that for about five years.”

The Redditor also explained the key motivation behind his investment journey:

“I remember my mum saying once that my dad never got to enjoy his retirement (he died) – that stayed with me. So if I can get out early and have a comfortable life, sign me up,” he said.

While not everyone can contribute $5,000 a month to investments, we can all take inspiration and store ideas from his success story and portfolio. Here are some of the stocks and ETFs in this high-yielding dividend portfolio that the investor has shared publicly.

The story continues

Coca cola

Coca-Cola Co (NYSE:KO) is perhaps one of the safest dividend stocks on the market, with more than six decades of consecutive dividend increases and a solid business. In late August, Morgan Stanley raised its price target on Coca-Cola Co (NYSE:KO) to $78 from $70 and called it a top pick. Morgan Stanley believes the company is well positioned to see strong organic sales compared to industry peers.

at Wendy’s

It’s not common to see Wendy’s Co (NASDAQ:WEN) in Redditors’ portfolios generating long-term dividend income. Still, the Redditor who earns about $1,000 a week in dividends said the fast-food chain’s stock is among his notable holdings. WEN yields about 5.7%.

PepsiCo

PepsiCo Inc. (NASDAQ:PEP) has a dividend yield of about 3.2% and more than 50 consecutive years of dividend growth. Like Coca-Cola, it is considered a defensive stock that investors like for all market cycles. The Redditor who earns $1,000 weekly in dividends mentioned PEP among his notable holdings.

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Nuveen Preferred Fund and Income Opportunities

Nuveen Preferred & Income Opportunities Fund (NYSE:JPC) invests primarily in stocks and other income-generating investments, including bonds. Some of the fund’s top holdings include Barclays, JPMorgan, Wells Fargo and Truist. JPC pays monthly dividends and yields over 7%.

JPMorgan Equity Premium Income ETF

The JPMorgan Equity Premium Income ETF ( NYSE:JEPI ) has become a go-to investment among Redditors looking to invest in long-term dividend ETFs. JEPI makes money by investing in some of the most notable large-cap US stocks and selling call options. JEPI is ideal for those seeking exposure to defensive stocks. JEPI typically underperforms during bull markets, but protects investors from huge losses during bear markets because the majority of its portfolio consists of large, defensive stocks such as Trane Technologies PLC (NYSE:TT), Southern Co ( NYSE:SO), Progressive Corp (NYSE: PGR), among many others.

The fund pays a monthly dividend and yields around 7%.

JPMorgan Nasdaq Equity Premium Income ETF

The Redditor, who earns $1,000 a week in dividends, counted the JPMorgan Nasdaq Equity Premium Income ETF ( NASDAQ:JEPQ ) among the top ETFs in his portfolio. JEPQ invests in Nasdaq companies and generates additional income by selling call options. Since October 2, the ETF has returned about 9%.

Nuveen Variable Rate Income Fund

Nuveen Floating Rate Income Fund (NYSE:JFR) is a floating rate income fund that generates income by investing in adjustable rate loans. The fund has returns of approximately 11%. However, floating rate funds are usually attractive when interest rates rise.

Schwab US Dividend Equity ETF

The Redditor, who earns about $1,000 a week in dividends, said he only owns 118 shares of the Schwab US Dividend Equity ETF (NYSE:SCHD). The ETF tracks the Dow Jones US Dividend 100 Index and gives you exposure to some of the top US-traded dividend stocks, including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie, among many others.

Wondering if your investments can take you to a $5,000,000 nest egg? Talk to a financial advisor today. The free SmartAsset tool matches you with up to three verified financial advisors serving your area and you can interview at no cost. to decide which one is right for you.

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This article 49-Year-Old Earning $1,000 a Week in Dividends with $927,892 Stock Portfolio: Top 8 Stocks and ETFs originally appeared on Benzinga.com