Dividend stocks are gaining attention amid rising geopolitical tensions and labor market concerns, as investors seek stability during market volatility.
In June, a Redditor posted details of his dividend income and portfolio on the r/Dividends forum, which has 220,000 members. Screenshots showed his monthly dividend income at $10,097.
The 49-year-old investor said investments in AI stocks helped him achieve his income targets, with about 90% of his portfolio still in growth stocks. "Over 90% still in growth stocks," he stated. "Tempted to just go ahead and retire."
His largest holding is Broadcom Inc., with a $581,000 stake. The stock has risen 48% over the past year and yields approximately 0.8%. He cited Broadcom's dividend growth history and stock price gains as reasons for his investment.
His second-largest position is the Fidelity Government Money Market Fund, with a $200,000 investment. This fund invests in short-term government securities.
Other holdings include Nvidia Corp., with an $85,000 position and a 36% increase over the past year; the YieldMax NVDA Option Income Strategy ETF, which sells call options on Nvidia and has a distribution rate around 38%; and the YieldMax MSTR Option Income Strategy ETF, generating income through call options on MicroStrategy Inc. with a distribution rate near 64%.
PennyMac Mortgage Investment Trust, a mortgage REIT with a dividend yield over 12% and a 9% stock increase in the past year, is also in his portfolio.
The iShares Semiconductor ETF provides exposure to U.S. semiconductor companies, with a dividend yield of about 0.5%. Top holdings include Nvidia, Micron Technology, Advanced Micro Devices, Broadcom, and Applied Materials.
Taiwan Semiconductor Manufacturing Company, another low-yield growth stock, has risen about 60% over the past year and yields around 1%.