Redditor Who Earns $550 a Month in Dividends Shares His Top 13 Stocks and ETFs

Benzinga and Yahoo Finance LLC may earn commission or revenue for some articles through the links below.

Investors are bracing for a potential rate cut in September and assessing opportunities in the market to channel their capital. Dividend stocks are set to bounce back because history suggests they tend to do well when the Fed begins a rate-cutting cycle. According to a report from Raymond James earlier this year, stocks typically face “tough” times when interest rate cuts begin because the Fed only starts cutting rates when the economy is under pressure. However, the company said dividend stocks have historically provided “downside risk mitigation” in this environment.

Thousands of dividend investors regularly share their tips and secrets about earning a steady income in Reddit’s dividend communities. About five months ago, someone did a poll on r/Dividende asking people to share their monthly dividend income.

Trending now:

• A billion dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
  This is a paid advertisement. Please carefully consider the Fundrise Flagship Fund’s investment objectives, risks, fees and expenses before investing. This and other information can be found in fund prospectus. Read them carefully before investing.

• This multi-billion dollar fund invested in the next big real estate boom, here’s how you can sign up for $10.
  This is a paid advertisement. Please carefully consider the Fundrise Flagship Fund’s investment objectives, risks, fees and expenses before investing. This and other information can be found in fund prospectus. Read them carefully before investing.

While many high-profile portfolios earn thousands of dollars per month, for this article, we have chosen a portfolio that earns $550 per month as we focus on dividend investing strategies for beginner investors. The Redditor who shares this portfolio said he makes this income from a $60,000 investment.

Many of the stocks in the portfolio are risky REITs and high yielding business development companies.

The ETFs and stocks mentioned in the article are for informational purposes only and are based on an income report/commentary shared by an investor on Reddit. These are not recommendations or investment advice.

Energy Transfer LP

Energy Transfer LP Unit (NYSE:ET) is an energy dividend stock with a nearly 8% yield. The company is less exposed to volatile commodity prices than its rivals because most of its revenue comes from commission-based contracts. Earlier this month, Energy Transfer LP Unit (NYSE:ET) raised its full-year profit outlook after reporting strong second-quarter volumes.

The story continues

Icahn Enterprises LP

Billionaire Carl Icahn’s Icahn Enterprises LP common stock ( NASDAQ:IEP ) yields more than 23%, but it’s not the safest dividend stock out there. The company recently published second-quarter results, according to which the conglomerate’s loss was higher than Wall Street estimates, and revenue also missed expectations. The stock is down about 12% this year.

Altria Group

Altria Group (NYSE:MO) has a dividend yield of 7.6% and a consistent dividend growth history of about 54 years. It is one of the most popular high-yielding dividend stocks among income investors on Reddit. While the tobacco industry’s woes amid declining use of traditional tobacco products have Altria Group ( NYSE:MO ) investors uneasy, they are hopeful about the company’s transition to e-vapes and nicotine pouches.

Annaly Capital Management

New York-based mortgage REIT Annaly Capital Management, Inc. (NYSE:NLY) is another high-yielding dividend stock in the Redditor’s portfolio. The stock yields about 12% and pays $550 per month in dividend income.

Blackstone Mortgage Trust

Blackstone Mortgage Trust Inc. (NYSE:BXMT) has a dividend yield of about 9% even after a 24% dividend cut announced last month, mainly due to performance issues in office loans. However, the company also announced plans to buy back up to $150 million of its Class A common stock.

FS KKR Capital

FS KKR Capital Corp (NYSE:FSK) is a business development company with a dividend yield of about 13%. The company’s second-quarter results showed signs of improving asset quality. It has a $1.4 billion investment portfolio focused primarily on senior secured debt.

Eastern Government Properties

Easterly Government Properties Inc. (NYSE:DEA) is a Washington REIT that lends properties to the US government. More than 90% of the company’s rental income comes from government leases, which makes its business model safe because government-backed leases are considered reliable and long-term. The stock has a dividend yield of about 7.8%.

Rhythm Capital

Rithm Capital Corp (NYSE:RITM) is a mortgage services company. The company manages a portfolio of mortgage-related investments, focusing on mortgage servicing rights (MSRs). At the end of the June quarter, MSRs were the largest asset on Rithm Capital’s balance sheet, valued at $9.7 billion.

JPMorgan Nasdaq Equity Premium Income ETF

The 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 additional income by selling call options. Its dividend yield is around 9%.

The capital of Hercules

Hercules Capital Inc. (NYSE:HTGC) is another high-yield BDC dividend stock in the portfolio, generating $550 per month. Jefferies recently raised its price target on the stock to $25 from $23, reiterating a Buy rating following its second-quarter results. Hercules Capital Inc. (NYSE:HTGC) has over a decade of consistent dividend growth. Since 2019, the company has paid 16 special dividends.

Read more:

• Don’t miss the next NVIDIA – you can invest in the future of AI for just $10.
  **This is a paid advertisement. Please carefully consider Fundrise Innovation Fund’s investment objectives, risks, fees and expenses before investing. This and other information can be found in fund prospectus. Read them carefully before investing.

• When today’s AI startups go public, most of the rapid growth will be behind them – here’s how not to be left out.
  This is a paid advertisement. Please carefully consider Fundrise Innovation Fund’s investment objectives, risks, fees and expenses before investing. This and other information can be found in fund prospectus. Read them carefully before investing.

• Don’t miss the real AI boom – here’s how to use just $10 to invest in high-growth private tech companies.
  This is a paid advertisement. Please carefully consider Fundrise Innovation Fund’s investment objectives, risks, fees and expenses before investing. This and other information can be found in fund prospectus. Read them carefully before investing.

Arbor Realty Trust

Arbor Realty Trust Inc. (NYSE:ABR) is a mortgage REIT with a dividend yield of 13%. Earlier this month, Arbor Realty released second quarter results. Distributable EPS for the quarter was $0.45, beating Wall Street estimates of $0.42. Net interest income was $88 million, missing the market estimate of $97 million.

Capital Blue Owl

Blue Owl Capital Corp. (NYSE:OBDC) is a business development company. It recently announced strong Q2 results and unveiled plans to merge with Blue Owl Capital Corp. III (NYSE:OBDE). Analysts believe that after the merger, OBDC will become the second largest publicly traded business development company after Ares Capital. Whereas Blue Owl Capital Corp. (NYSE:OBDC) borrows at variable rates and borrows at fixed rates, the upcoming rate cut could be a headwind. However, the company’s merger with OBDE could increase transaction volumes, potentially offsetting fee issues.

Ares Capital Corporation

Another business development company in the dividend portfolio that generates $550 per month, Ares Capital Corporation (NASDAQ:ARCC), has a yield of about 9%. The stock has seen a roughly 10% increase in value over the past 12 months. During the second quarter, both core EPS and net investment income increased year-over-year, while the company funded $1.77 billion in net new investments.

This article Redditor Who Earns $550 a Month in Dividends Shares His Top 13 Stocks and ETFs originally appeared on Benzinga.com