Dividend stocks are gaining ground as investors scramble to safeguard their portfolios amid the ongoing US-China trade war. Jared Hoff, a senior portfolio manager at Federated Hermes, said while talking to The Wall Street Journal that dividend stocks are seeing a surge in demand, reversing the trend of the past couple of years when demand for risk-averse investments was low.
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A few days ago, a dividend investor shared his income report and holdings on r/Dividends — a community of income investors with over 700,000 followers. The portfolio details shared by the investor showed his monthly dividend income was roughly $4,973. The investor said he had about $1.2 million in cash equivalents, like certificates of deposit and money market funds, with paid-off house and cars.
The investor, who plans to retire in three years, said he had “ignored” dividend stocks until recently but began shifting into income-generating investments following the recent market pullback.
"I don't want to lose the growth aspect of my portfolio as I want to see it continue to grow," he wrote. "We plan to use the nearly $5000 monthly dividend income as of today and reinvest the dividends for the next 8.5 years."
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The investor said his portfolio was down about 12.5% in 2025 as of the time of his post. He sold tech equities where he had already secured "huge" gains to pile into dividend stocks.
"We have five kids aged 17-23 and the goal was to create generational wealth for them and their future families," he added.
JPMorgan Nasdaq Equity Premium Income ETF
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options.
NEOS S&P 500 High Income ETF
The NEOS S&P 500 High Income ETF (CBOE: SPYI) is a high-yield covered call ETF that pays monthly dividend income. It invests in some of the top S&P 500 companies and generates extra income by selling call options on stocks, generating extra premium income for shareholders. SPYI has a distribution rate of more than 12%.
Vanguard Total Bond Market Index Fund ETF
Vanguard Total Bond Market Index Fund ETF (NASDAQ:BND) was among the top bond ETFs in the portfolio. The fund provides exposure to the investment-grade U.S. dollar-denominated bond market and pays monthly.
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Broadcom
Broadcom (NASDAQ:AVGO) has a dividend yield of about 1.2%. The stock is down 17% this year amid broader market volatility and tariffs on semiconductors. Earlier this month, Oppenheimer called Broadcom one of its top picks in the semiconductor space.
JPMorgan Chase
JPMorgan Chase (NYSE:JPM) has a dividend yield of 2.3%. The banking giant's shares are up 8% over the past six months. Recently, JPMorgan reported first-quarter earnings that beat Wall Street estimates. Revenue rose 9.7% year over year in the period.
Home Depot
Home Depot (NYSE:HD) has a dividend yield of 2.5%. The stock is down 8% this year. The company's CEO, Edward Decker, was among the CEOs of major retailers who met with President Donald Trump earlier this month to discuss the impact of tariffs on their companies.
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This article 51-Year-Old Making $4,970 a Month In Dividends Shares His Top 6 Stocks, Aims To 'Create Generational Wealth For Kids And Their Families' originally appeared on Benzinga.com
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