Investors invest in profits to grow wealth and balance their growth portfolios to meet risks. Dividend stocks have shown their strength during recent market downturns and volatility. The data shows that Mergent's index of dividend growth stocks has been 20% less volatile than the S&P 500 over a 10-year period.
About two years ago, the dividend investor shared his detailed income report, story and portfolio screenshots on r/Dividends, a discussion board for dividend investors with more than 622,000 members. His portfolio information showed that he collected $62,193 in annual dividends or $5,183 per month.
The 49-year-old investor said he has focused on growing ETFs for 25 years but switched to investing in equities in the past three years.
Screenshots of the investor's portfolio showed that he invested about $2.71 million in about 20 stocks/ETFs and his initial investment amount increased to $3.1 million over time.
He was asked how he managed to accumulate wealth to invest. He said that he worked in paid jobs and also started businesses (software sales):
“Owning a business comes with risk, but it also creates many opportunities for wealth through tax and expense savings and income distribution strategies.”
“First job out of college was $27,300/yr. I signed up for my company's 401(k) plan and that's where I started. Little by little it adds up, especially if it's automatically reinvested.”
He even said that dividend payments from growth ETFs have been a “benefit” to his dividend yield.
“The combination of growth and consistent income is what helps me sleep at night.”
Let's take a look at some of the biggest dividends of this dividend fund.
Vanguard Total Stock Market ETF
Total portfolio weight: 46.6%
The investor's largest position was the Vanguard Total Stock Market ETF (VTI), which earns $5,180 a month in dividends and makes up about 46.6% of his total portfolio. The Vanguard Total Stock Market ETF offers investors exposure to the entire stock market, as its portfolio consists of approximately 3,600 small, mid-cap and large-cap stocks. It pays quarterly dividends and has an annual yield of 1.4%.
Vanguard Total International Stock ETF
Total portfolio weight: 14.2%
The investor's second largest holding was the Vanguard Total International Stock ETF (VXUS), which received $5,180 per month in dividends. This fund provides investors with exposure to global equity markets outside of the US. This company VXUS paid a dividend of 2.4 %.
iShares US Technology ETF
Total portfolio weight: 11.4%
The iShares US Technology ETF (NYSE:IYW) is a low-yield ETF that gives investors exposure to US technology stocks. Notable holdings in the fund include Apple, Microsoft, Nvidia, Broadcom and Meta Platform. The ETF paid a dividend of just 0.3% because it is a fund of growth, technology companies with no or low dividends. The ETF is up about 32% so far this year.
iShares Russell 1000 Value ETF
Total portfolio weight: 3.9%
The iShares Russell 1000 Value ETF (IWD) accounted for about 3.9% of the investor's total portfolio making $5,180 a month in dividends. IWD tracks US stocks that the fund considers undervalued. Some of the top stocks in its portfolio include Berkshire Hathaway, JPMorgan, ExxonMobil, Walmart and UnitedHealth, among others.
iShares Russell 1000 Growth ETF
Total portfolio weight: 3.5%
The iShares Russell 1000 Growth ETF (IWF) tracks the Russell 1000 Growth Index and offers investors exposure to growth stocks from the technology, consumer discretionary and health care sectors. It yields less than 1% and has gained nearly 32% so far this year.
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3M
Total portfolio weight: 3.3%
Industrial conglomerate 3M Co (NYSE:MMM) was among the three highest-paying dividends in the investor's portfolio, earning $5,180 per month. Screenshots of his portfolio showed that 3M brought in $3,695 in annual revenue. However, 3M's impressive 64-year growth streak ended earlier this year after the company cut its dividend following the emergence of its healthcare business.
AbbVie
Total portfolio weight: 2.4%
With a current dividend yield of 3.2%, AbbVie Inc. (NYSE:ABBV) was one of the key equity holdings in the Redditor's portfolio, making $5,180 per month.
Verizon Communications
Total portfolio weight: 1.9%
With a yield of more than 6% and 18 consecutive years of dividend growth, Verizon Communications Inc. (NYSE:VZ) is a popular stock among income investors. The Redditor, who earns $5,180 in monthly dividends, has 1.9% of his total investment in the company.
Intel
Total portfolio weight: 1.5%
Down 47% so far this year, Intel (INTC) pays a 2.2% dividend. About 1.5% of the portfolio which generates $5,180 per month in dividends is allocated to Intel. The stock recently rose after the Biden administration reportedly completed $7.86 billion in direct company funding as part of the CHIPS and Science Act.
Real Income
Total portfolio weight: 1.5%
Realty Income (O) is one of the most popular monthly dividends worldwide, paying 5.5%. The company has raised its payouts for 30 consecutive years. IO accounted for about 1.5% of the investors' total portfolio, amounting to $5,180 per month in dividends.
Wondering if your investments can take you to a $5,000,000 nest egg? Talk to a financial advisor today. SmartAsset's free tool matches you with up to three vetted financial advisors in your area, and you can chat with your advisor about a match for free to decide which one is right for you.
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This 49-Year-Old Makes $5,180 a Month in Stocks With a 'To Help Me Sleep at Night' Portfolio – Top 10 Stocks You Can't Miss from Benzinga.com
