A 40-year-old dividend investor making $4,400 a month shares his portfolio of stocks and ETFs: their top 10 picks

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The Federal Reserve’s 50 basis point rate cut spooked many as most Wall Street analysts did not expect aggressive policy easing from the central bank. Investors are now questioning the true state of the economy and weighing the likelihood of a potential recession.

One of the benefits of investing in reliable, long-term dividend stocks is that you’re almost always well-positioned to survive any market downturn or recession and thrive during bull markets.

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About five months ago, a Redditor on r/Dividends shared his detailed income report and portfolio, saying he makes about $53,500 in annual dividend income and about $4,400 per month. The investor, who is 40 years old, aims to achieve an annual dividend income of $100,000.

The Redditor shared all of his portfolio positions with details of the total number of stocks and the amount invested in each stock/ETF. Let’s look at some of the biggest holdings in this high-dividend portfolio.

ConocoPhillips

ConocoPhillips (NYSE:COP) was the biggest holding in the Redditor’s portfolio, earning $4,400 per month. The energy company has a dividend yield of about 3%. Earlier this year, ConocoPhillips said it would buy Marathon Oil for $22.5 billion.

Phillips 66

With 1,450 shares, Phillips 66 (NYSE:PSX) was the Redditor’s second-largest holding, earning $4,400 per month in dividends. The energy production and logistics company has a dividend yield of 3.5% and has raised its dividend for more than 10 consecutive years.

ETF NEOS Nasdaq-100 High Income

NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) exposes investors to Nasdaq 100 companies and generates income by selling covered call options on the index. It pays a monthly income and has a yield of around 15%. Over the past year, QQQI has increased by 1.5%.

JPMorgan Nasdaq Equity Premium Income ETF

The Redditor, who earns about $4,400 a month in dividends, said he has 1,150 JEPQ shares in his portfolio. 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.

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Schwab US Dividend Equity ETF

The Schwab US Dividend Equity ETF (NYSE:SCHD) 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 others. SCHD’s holdings are mostly conservative dividend payers, making it suitable for near-retirement investors looking for consistent dividend income. The ETF yields approximately 3.4%.

Verizon Communications

With a yield of over 6% and 18 consecutive years of dividend growth, Verizon Communications Inc. (NYSE:VZ) is a popular dividend stock among income investors. The Redditor, who was earning $4,400 in monthly dividends, had 1,300 shares of VZ in his portfolio.

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The capital city of Ares

Business development and investment company Ares Capital Corporation (NASDAQ:ARCC) has a yield of about 9.4% and has gained popularity among Redditors. Oppenheimer recently published a list of stock recommendations heading into the US election. The firm believes Ares Capital will benefit from both Republican and Democratic administrations.

iShares National Muni Bond ETF

The iShares National Muni Bond ETF (MUB) is a municipal ETF that generates monthly income for shareholders. The biggest benefit of this ETF is that its earnings are tax-free. MUB tracks investment grade US municipal bonds and has yields of around 2.9%.

AT&T

AT&T Inc. (NYSE:T) yields about 5%, and the stock has gained about 25% this year. UBS recently named AT&T a top pick in the cable, satellite and telecommunications sector. The firm believes AT&T can sustain its underlying profitability growth, low loss rate and fiber gains. The Redditor, earning about $4,400 a month in dividends, had 2,400 T shares in his portfolio.

ETF Vanguard High Dividend Yield Index Fund

The Vanguard High Dividend Yield Index Fund ETF (NYSE:VYM) provides exposure to some of the most established and safe dividend stocks, including ExxonMobil, Coca-Cola, Walmart and Home Depot. The ETF tracks the FTSE High Dividend Yield Index.

Interest rates are falling, but those yields aren’t going anywhere

Lower interest rates mean some investments won’t yield similar results to past months, but you don’t have to give up on those gains. Certain private market real estate investments offer 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.

Arrived Homes, the investment platform backed by Jeff Bezos, offers a Private credit fund. This fund provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual return paid to investors monthly. The best part? Unlike other private credit funds, it has a minimum investment of only $100.

Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high yield deals.

This article A 40-Year-Old Dividend Investor Making $4,400 a Month Stocks and ETFs: Their Top 10 Picks originally appeared on Benzinga.com