Reddit User Earns $4000 Monthly from Top 7 Dividend Stocks

August 16, 2024 08:30 AM PDT | By Team Kalkine Media

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Reddit User Earns $4000 Monthly from Top 7 Dividend Stocks — Image source: shutterstock

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Reddit User Shares How He Earns $4000 Monthly in Dividends

Top ETFs in a $150,000 Portfolio Generating $4000 Monthly

See the Best Funds for Earning Monthly Income with High Yields

Living off dividends may seem like a dream, but it comes with challenges. Achieving significant dividend income requires a substantial initial outlay into high dividend yield stocks or ETFs, along with vigilant risk management. One Reddit user detailed his experience, sharing that he earns approximately $4,000 a month in dividends. He provided a thorough breakdown of his portfolio, historical returns, and principal investment.

With an initial amount of $150,000, this individual generates $4,000 monthly through a mix of high-yield covered call ETFs and income funds. Here are some of the key funds from his portfolio and their income strategies:

YieldMax AMD Option Income Strategy ETF (AMDY)

Another covered call ETF, this one generates monthly income at a distribution rate of about 38%, with the latest payment being around $0.4306 per share. It offers indirect exposure to AMD shares.

S&P 500 Enhanced Options Income ETF (JEPY)

A high-yield income ETF that provides a steady monthly distribution. Unlike single-company-focused ETFs, JEPY offers exposure to the broader S&P 500 index, making it suitable for those seeking stable income with lower volatility.

Nasdaq 100 Enhanced Options Income ETF (QQQY)

This ETF produces a substantial distribution on the Nasdaq 100 daily, which means the options' strike price is above the current market price of the index. While this approach limits potential gains from the index's price appreciation, it results in a high options premium, with a distribution rate of about 71%. It is aimed at those looking for higher income from dividend stocks and willing to accept a cap on potential market gains.

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