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Building a great investment portfolio and, therefore, wealth takes a lot of patience and time. Portfolios can also take many shapes depending on the investor’s goals and purpose.
For some, it’s all about chasing high-risk, high-reward opportunities, which promise quicker returns, while for other investors, it’s about a steadier approach focusing on dividend payments and long-term growth.
Both strategies have benefits and again, the right one depends on the investor’s goals, risk appetite and time horizon.
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One investor recently shared his journey and explained how he turned $3.50 per hour investments into a $4.4 million portfolio in over 35 years. While his approach relied heavily on dividends and closed-end funds, a major key to his success involved making bold moves on risky stocks like IMMU (Immunomedics) and SAVA (Cassava Sciences).
He held IMMU stocks for decades and sold them at the right time, generating $2.2 million for his portfolio, which shows how long-term strategies and perhaps a bit of luck can pay off big.
“Started at $3.50 per hour. Went back to school in my early 30s, as did my wife. Definitely no inheritance and student loans to boot. Just 35 years of investing. […] Got lucky with IMMU buyout after riding that one (in and out) for ~30 years,” the investor said.
Now, he’s planning on shifting gears to more conservative, balanced, high-yield stocks that pay dividends. With his holdings allocated to 150 different stocks, his top 10 favorites make up 25% of his $300K annual dividends.
These picks include a combination of dividend-growth stocks, closed-end funds and high-risk plays and he’s shared them in a thread in Reddit’s r/dividends community.
Let’s closely examine his top 10 stock picks and why they appeal to so many investors.
Investor With $300K in Dividends and a $4.4 Million Portfolio Shares His Top 10 Stocks
BSTZ (BlackRock Science and Technology Trust II)
BSTZ is a closed-end fund focusing on tech innovation, such as AI, robotics and biotech. With a current dividend yield of 10.04%, this pick is a favorite among investors who want high yields and seek growth and exposure to advanced industries.
JRI (Nuveen Real Asset Income and Growth Fund)
JRI invests in assets like real estate and infrastructure, offering buyers diversification and a hedge against inflation. With a dividend yield of around 7.89%, JRI charms many investors, especially those close to or already retired and those looking for stability.
DSL specializes in global fixed-income securities, such as high-yield bonds and new market debt. Its current dividend yield is 10.17%. Investors buy DSL because of its high dividend rate and diversification across assets.
NRO (Neuberger Berman Real Estate Securities Income Fund)
Boasting a 10.75% dividend yield, NRO offers access to real estate securities, primarily REITs, which generate returns through property income.
KYN (Kayne Anderson Energy Infrastructure Fund)
KYN invests in energy infrastructure acquisitions, including pipelines and storage facilities. With a 9.97% dividend yield, this fund appeals to investors seeking income and exposure to a traditionally high-yielding industry.
HIO (Western Asset High Income Opportunity Fund)
As a high-yield bond fund created for income generation, HIO offers a dividend gain of 9.50% and appeals to investors due to its substantial profits in fixed-income securities.
IDE (Voya Infrastructure, Industrials and Materials Fund)
With a dividend yield of 8.94%, IDE specializes in infrastructure and industrial sectors, providing investors with insight into essential services, such as materials and transportation.
MO (Altria Group)
MO is a leader in the tobacco sector and offers a 9.91% dividend yield. The group has a strong cash flow, is a reliable dividend stock as per investors and is a good choice for many because it offers diversification into alternative products.
ARCC (Ares Capital Corporation)
ARCC is a business development company that offers financing to mid-sized companies and offers a dividend yield of 9.91%. Investors who want to benefit from the expansion of private companies find ARCC a good buy.
HYT (BlackRock Corporate High Yield Fund)
With dividend returns of 9.43% currently, HYT invests in a portfolio of corporate high-yield bonds. The fund’s focus on offering regular income and a buffer against market volatility makes it a favorite for many investors.
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