Dividend stocks are drawing interest as investors aim to protect their portfolios from market volatility amid growing concerns about stretched AI stock valuations.
Last month, a Redditor shared his dividend income details and portfolio on r/Dividends, a community of dividend investors with 287,000 members. The investor said his portfolio generated $16,378 in October, yielding about 14%.
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"Please don't let anyone tell you that dividend investing will not pay the bills in retirement," he said. "With a diversified portfolio and careful maintenance, I have been able to replace my current income well ahead of schedule."
The investor said his portfolio has about 40 holdings. Let's take a look at some of the highest-yielding dividend stocks in the portfolio.
Ares Capital Corporation
Business development company Ares Capital (NASDAQ:ARCC) has a dividend yield of about 9.5%. The company recently posted Q3 earnings that matched Wall Street's estimates while its interest income from investments came in ahead of expectations.
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Abrdn Global Infrastructure Income Fund
Abrdn Global Infrastructure Income Fund (NYSE:ASGI) provides investors with exposure to the global infrastructure industry through investments in public and private infrastructure-related equities. It has a dividend yield of about 11%.
Energy Transfer LP
Energy Transfer LP Unit (NYSE:ET) is an energy dividend stock with a yield of about 8%. The midstream energy company last week posted Q3 results that missed Wall Street's estimates as revenue fell 3.9% year over year.
NEOS Bitcoin High Income ETF
NEOS Bitcoin High Income ETF (CBOE: BTCI) provides investors access to exchange‑traded products with direct exposure to Bitcoin. The fund has a distribution rate of about 28% and pays monthly.
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YieldMax Universe Fund of Option Income ETFs
The YieldMax Universe Fund of Option Income ETFs (NYSE:YMAX) has multiple ETFs in its portfolio that implement options strategies to generate income. It has a monthly distribution rate of about 75%.
Dynex Capital
Mortgage REIT Dynex Capital (NYSE:DX) has a dividend yield of about 15% and pays monthly. The stock is up 6% so far this year. The company's co-chief executive, Smriti Popenoe, recently said on Benzinga's Marketopolis podcast that dividend stocks are suitable for all investors, not just for boomers.
Kimbell Royalty Partners
Texas-based Kimbell Royalty Partners LP (NYSE:KRP) acquires mineral and royalty interests in oil and gas properties. The stock has a dividend yield of about 12%.
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