42-Year-Old Investor Earning $12,000 in Dividends On $500,000 Invested Reveals Portfolio: Top 9 Stocks

“Married. One child – preteen who goes to a private school. Live in Chicago, so quite expensive cost of living. Stupid expensive really, but that’s our fault. That’s partially why I have so much in cash – school/housing are quite hefty.”

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The investor was generous enough to share his stock holdings and tell everyone how much he made from each stock annually in dividends. Let’s look at some of the most important stocks and funds in his portfolio.

Vanguard Total Stock Market Index Fund Admiral Shares

Vanguard Total Stock Market Index Fund Admiral Shares (MUTF: VTSAX) provides investors with exposure to the entire U.S. stock market, including small, mid and large-cap stocks. Its portfolio consists of more than 3,600 stocks. The fund pays quarterly dividends and yields about 1.2%.

VTSAX accounted for the biggest chunk of dividend income for the Redditor, raking in about $3,615 annually, according to the details shared by the investor publicly. The investor said more than once during the discussion on his report that he has over half his money invested in the fund.

“I am trying to have around $25k-$30k in each stock. VTSAX is different – almost half all money is in it. That is main reason my yield is lower,” he said.

Coca-Cola

Coca-Cola Co (NYSE:KO) was among the Redditor’s top dividend stock picks, earning about $1,000 per month in dividends. He said KO shares brought about $672 in annual dividend income. Coca-Cola has raised its dividends for 62 consecutive years. Oracle of Omaha Warren Buffett has a $25.5 billion stake in the beverage giant as of the end of the June quarter.

Bristol-Myers Squibb

Pharma company Bristol-Myers Squibb Co (NYSE:BMY) has a dividend yield of about 4.5% and has raised its payouts for 15 straight years. The investor making $1,000 monthly in dividend income said he collected about $625 from BMY annually.

Suncor Energy 

Canadian energy company Suncor Energy Inc (NYSE:SU) accounted for about $683 in annual dividend income for the investor who shared his detailed income report. The stock has a dividend yield of about 4%.

Citigroup 

With a dividend yield of about 3.5%, Citigroup Inc (NYSE:C) is a notable bank dividend stock in the investor’s portfolio making about $12,000 per year. Earlier this month Citigroup posted strong third-quarter results. EPS in the quarter came in at $1.51, beating estimates by $0.20. Revenue of $20.32 billion was also ahead of Wall Street estimates by about $500 million.

The Redditor said he collected about $714 in dividend income from his investment in Citigroup.

Verizon Communications

According to the details he shared in his income report, Verizon Communications Inc. (NYSE:VZ) brought in about $1,224 a year in dividend income for the Redditor. Verizon has a dividend yield of about 6.5%.

Visa

With a dividend yield of less than 1%, Visa Inc (NYSE:V) allows investors a sweet spot to enjoy both dividend income and capital gains through stock price appreciation. The payment giant’s shares have grown about 60% over the past five years. The company has raised its dividend payouts for 15 consecutive years. Visa accounted for just $166 of the investor’s $12,000 annual dividend income.

Talking about Visa, the investor said:

“Visa (V) has a very low dividend (under 1%), but it is growing by 20% each year. And I think V has more growth potential than some other high-doc stocks.”

Realty Income

Realty Income Corp (NYSE:O) is among retail investors’ top favorite real estate dividend stocks on Reddit. One investor who makes $12,000 per year in dividends said Realty Income was part of his Roth IRA account and generated about $814 in annual income. Realty Income has a dividend yield of over 5% and pays monthly dividends. The stock is up about 30% over the past year.

Business development and investment company Ares Capital Corporation (NASDAQ:ARCC) is a high-yield dividend stock in the investor’s portfolio making about $12,000 in annual dividend income. He made about $2,697, part of his Roth IRA account, from the stock. During the discussion, the Redditor asked for advice from fellow investors:

“I have ARCC and O in Roth due to unqualified dividends, so would prefer to keep them as is but not sure if that’s the right approach.”

ARCC has a dividend yield of about 8.8%.

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This article 42-Year-Old Investor Earning $12,000 in Dividends On $500,000 Invested Reveals Portfolio: Top 9 Stocks originally appeared on Benzinga.com