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Market volatility is increasing as the April 2 tariff implementation deadline approaches, causing investors to flock to safe and reliable investments. A latest report from BNY Investments says that dividend stocks are positioned to shine this year due to heightened uncertainty and concerns over a potential inflation rebound.
About six months ago, someone asked investors on r/Dividends — a Reddit discussion board with more than 690,000 followers — whether anyone had $1 million invested in purely dividend stocks. The poster also requested investors to share their monthly dividend income and whether it was worth it.
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The question received over 200 comments, with many investors sharing their success stories and interesting income reports. One particular comment caught our eye.
A Redditor said he had $1.4 million in his retirement account and $1.1 million in a taxable account. The investor said he was making about $5,500 a month from dividend stocks in these accounts.
"I beat the S&P return pretty consistently doing this and the retirement accounts don’t care about the short-term cap gains rate," he added.
The investor said he had growth stocks as well as "high qualified" dividend companies in his portfolio.
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In a separate comment, he shared that he was gradually shifting his taxable account to have 75% of its holdings in dividend-paying stocks over the next five years, with a plan to build a steady income stream. He had a home worth about $1.1 million but planned to move to a lower-cost area.
"I work in a high comp high-stress job and I’m not waiting for social security to get off this treadmill."
Let's take a look at some of the top dividend stocks in this portfolio.
Toronto-Dominion Bank
Toronto-Dominion Bank (NYSE:TD) is a Canadian bank with a dividend yield of about 4.8%. The stock is up 12% so far this year. Last month, the company posted fiscal first-quarter results that came in ahead of Wall Street estimates.
Kraft Heinz Co
Food and beverage giant Kraft Heinz (NASDAQ:KHC) has a dividend yield of over 5%. Last month, Bank of America downgraded the stock to Underperform amid expectations that the company's organic sales will remain under pressure over the next 12 months. KHC shares are down 12% over the past year.
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New Jersey-based renewable energy company Clearway Energy (NYSE:CWEN) was one of the stocks in the portfolio of the investor earning $5,500 a month in dividends. It has a dividend yield of 5.8%. The company in February increased its quarterly dividend by 1.7% to $0.4312 per share.
Realty Income
Realty Income (NYSE:O) is one of the most popular monthly dividend REIT stocks among Reddit investors. It yields over 5%.
Pfizer
Pharmaceutical giant Pfizer (NYSE:PFE) has raised its dividends for 16 straight years. The stock yields about 6.5% and is down 5% over the past year. Last month, the company affirmed its 2025 earnings and revenue guidance, which fell short of Wall Street estimates.
Cheesecake Factory
Cheesecake Factory (NASDAQ:CAKE) has a dividend yield of 2.3%. The stock is up 31% over the past 12 months. In 2025, the company expects to open 25 new restaurants and sees roughly $3.8 billion in revenue.
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This article Dividend Investor Earning $5,500 a Month Shares Stock Portfolio and Early Retirement Plan, Says He's 'Not Waiting for Social Security' originally appeared on Benzinga.com
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