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With interest rates almost certain to begin 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 rates are falling, but a new report from Ned Davis Research has challenged this notion. The report says that historically, dividend stocks have outperformed non-dividend-payers in the first nine months of easing cycles. Talking about the report on CNBC, Ed Clissold, Chief U.S. Strategist at Ned Davis Research, said this trend goes all the way back to 50 years of easing cycles. He said since the Fed would be cutting rates because of a slowdown in earnings, investors would want to invest in companies that pay dividends.
Which dividend stocks can help you reach significant income per month? 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, saying he earns about $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 picked some of the portfolio’s most important high-yield funds and stocks.
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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 yield (127%). However, amid high volatility in the shipping industry due to geopolitical headwinds, among other reasons, the company suspended its dividend. However, the company resumed its dividend earlier this year, albeit at 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 that position and earns money through options premiums paid to investors. The ETN yields about 19%.
ARMOUR Residential REIT, Inc. (NYSE:ARR)
Florida-based ARMOUR Residential REIT, Inc. (NYSE:ARR) is a high-yield mortgage REIT paying monthly dividends. The stock has a dividend yield of about 14%, as of August 14.
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 stock has a dividend yield of about 18%.
Cornerstone Total Return Fund
Cornerstone Total Return Fund Inc (NYSEAMERICAN: CRF) is a closed-end mutual fund in the Redditor's portfolio generating 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 about 18% and pays monthly dividends.
JPMorgan Equity Premium Income ETF
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 about 6.5% as of August 14.
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Horizon Technology Finance Corp
Horizon Technology Finance Corp (NASDAQ:HRZN) is a business development company that lends to technology, life science, health care information and services companies. HRZN has a dividend yield of about 11.74%.
Gladstone Capital Corporation
Gladstone Capital Corporation (NASDAQ:GLAD) is a business development company with an over 8% dividend yield. The company recently posted strong fiscal third-quarter results, beating Wall Street's estimates on net interest income.
Enbridge
Energy pipeline company Enbridge Inc (NYSE:ENB) is one of the top high-yield dividend stocks for any portfolio targeting $10,000 in monthly income. The stock has a dividend yield of about 7%. Over the past 29 years, the company has increased its dividend at a CAGR of about 10%.
Great Elm Capital
Great Elm Capital Corp (NASDAQ:GECC) is a business development company that invests in media, health care, telecom and communications equipment companies. The stock has a dividend yield of 14%.
BlackRock Floating Rate Income Strategies Fund
BlackRock Floating Rate Income Strategies Fund (NYSE:FRA) invests in floating rate debt securities. The fund pays monthly and has a distribution rate of about 11%.
Looking For Higher-Yield Opportunities?
The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks... Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the 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 boost on your first EquityMultiple investment when you sign up here (accredited investors only).
Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.
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This article $10,000 in Monthly Dividend Income Portfolio: Top 12 Stocks and ETFs originally appeared on Benzinga.com