Top 9 Stocks and ETFs

Dividend Investor Making $1,000 Per Month With Just $40,000 Invested Shares His ‘Hyper Dividend’ Portfolio: Top 9 Stocks and ETFs

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Giving yields too much importance in dividend investing comes with risks and caveats. But high-yield dividend stocks have never lost their allure over the past several decades. For beginner investors with a limited budget and high-risk appetite, focusing on stocks with high yields is the only way to reach a significant dividend income.

While dividend growth stocks with strong fundamentals and growth history provide investors better long-term opportunities, many are crushing it by investing in high-yield stocks.

Check It Out:

About two months ago, a dividend investor shared his portfolio and income report on r/Dividends, a discussion board for dividend investors on Reddit. The investor said he collected about $1,000 monthly with $40,000 invested, giving the portfolio an insane yield of about 34%.

“I created a hyper dividend portfolio last month and collected 1k last month. Goal is to reach 2.5k /month by next August,” the investor said.

As expected, most of the holdings in the portfolio are risky high-yield options ETFs. When asked whether he’s aware of the risks of losses in principal that come with investing in such kinds of ETFs, the investor said:

“Yes, I know. These are called synthetic ETFs. Don’t care how they pay it as long as principal + interest < final value.”

Let’s look at some of the biggest holdings in this extremely high-yield dividend portfolio.

Please note that many of these holdings are risky ETFs. This article is based on an income report shared publicly by an investor. It’s not investment advice.

The YieldMax MSTR Option Income Strategy ETF

The YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY) generates income by selling call options on MicroStrategy (MSTR) stock. Its distribution rate is about 75%.