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With interest rates almost certain to start in September following the latest encouraging inflation data, investors are evaluating their moves for the coming months. Dividend stocks aren’t famous for generating enthusiasm among investors when prices fall, but a new report from Ned Davis Research has challenged that perception. The report says that historically, dividend stocks have outperformed non-dividend payers in the first nine months of easing cycles. Speaking about the report on CNBC, Ed Clissold, chief strategist at Ned Davis Research, said that this trend goes all the way back to 50 years of easing cycles. He said that since the Fed would cut interest rates due to a slowdown in earnings, investors would want to invest in companies that pay dividends.
Which dividend stocks can help you earn a substantial monthly income? This question is asked hundreds of times in dividend investing communities on Reddit, and many successful investors often share their secrets and tips. A dividend investor on the social media platform shared in detail his dividend portfolio and said he earns around $10,000 a month in dividends.
The investor’s portfolio is highly diversified with ETFs, ETNs, stocks and options, with most investments in a traditional IRA.
We have selected some of the portfolio’s most important high-yield funds and shares.
Check it out:
ZIM Integrated Shipping Services
When the Redditor shared his high-income dividend portfolio on Reddit, shipping company ZIM Integrated Shipping Services Ltd (NYSE:ZIM) paid an extraordinary dividend (127%). Amidst high volatility in the shipping industry due to, among other things, geopolitical headwinds, the company however suspended its dividend. However, the company resumed its dividend earlier this year, albeit with a much lower yield (1.24%).
UBS AG Etracs Crude Oil Shares Covered Call ETN
UBS AG Etracs Crude Oil Shares Covered Call ETN (NASDAQ:USOI) is a covered call ETN linked to crude oil prices. It sells call options on this position and makes money through option premiums paid to investors. ETN yields around 19%.
ARMOR Residential REIT, Inc. (NYSE:ARR)
Florida-based ARMOR Residential REIT, Inc. (NYSE:ARR) is a mortgage REIT that pays monthly dividends. The stock has a dividend of around 14% per 14 August.
Invesco Mortgage Capital
Managed by Inveso, one of the top investment companies in the world, Invesco Mortgage Capital Inc. (NYSE:IVR) is a mortgage REIT that pays quarterly dividends. The share has a dividend of around 18 per cent.
Cornerstone Total Return Fund
Cornerstone Total Return Fund Inc (NYSEAMERICAN: CRF ) is a closed-end mutual fund in Redditor’s portfolio that generates about $10,000 per month in dividends. The fund invests in value and growth stocks for share price appreciation and dividend income.
Cornerstone Strategic Value Fund
Cornerstone Strategic Value Fund Inc. (NYSEAMERICAN: CLM) is a closed-end fund that generates income by investing in public companies. The fund yields around 18% and pays monthly dividends.
JPMorgan Equity Premium Income ETF
The JPMorgan Equity Premium Income ETF (NYSE:JEPI) is a popular ETF that makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. The fund pays a monthly dividend and yields around 6.5% per annum. 14 August.
Trending:
Horizon Technology Finance Corp
Horizon Technology Finance Corp (NASDAQ:HRZN) is a business development company that lends to technology, life science, health information and service companies. HRZN has a yield of about 11.74%.
Gladstone Capital Corporation
Gladstone Capital Corporation (NASDAQ:GLAD) is a business development company with a dividend yield of over 8%. The company recently posted strong third-quarter fiscal results that beat Wall Street estimates for net interest income.
Enbridge
Energy pipeline company Enbridge Inc (NYSE: ENB ) is one of the best high-yield dividend stocks for any portfolio targeting $10,000 in monthly income. The share has a dividend of around 7 per cent. Over the past 29 years, the company has grown its dividend at a CAGR of around 10%.
Great Elm Capital
Great Elm Capital Corp (NASDAQ:GECC) is a business development company that invests in media, healthcare, telecommunications and communications equipment companies. The share has a dividend of 14 per cent.
BlackRock Floating Rate Income Strategies Fund
BlackRock Floating Rate Income Strategies Fund (NYSE:FRA) invests in floating rate debt instruments. The fund pays monthly and has a distribution rate of around 11%.
Looking for higher yield opportunities?
The current high interest rate environment has created an incredible opportunity for income seeking investors to earn massive returns, but not through dividend stocks… Certain private market real estate investments allow retail investors to take advantage of these high yield opportunities, and Benzinga has identified some of the most attractive options for you to consider.
For example Ascent Income Fund from EquityMultiple aims for stable income from senior debt positions in commercial real estate and has a historical distribution yield of 12.1% supported by real assets. With payment priority and flexible liquidity options, Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% Return Increase on Your First EquityMultiple Investment When You Sign Up Here (Accredited Investors Only).
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high yield deals.
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This article $10,000 in Monthly Dividend Income Portfolio: Top 12 Stocks and ETFs originally appeared on Benzinga.com