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There is more than one way to achieve financial success through investing. Some prefer riding the gains of tech growth stocks to build wealth, while others enjoy collecting dividend income alongside portfolio growth. Let's see an interesting success story of an investor crushing it with the latter strategy.
In June last year, a dividend investor shared his detailed income report with portfolio screenshots on r/Dividends, a discussion board for income investors with more than 600,000 members. The investor said he earned about $10,200 per month in dividends or $122,930 per year. He said his total portfolio value was $977,000, excluding reinvested dividends, with a yield of 12.5%.
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However, the investor did not seem happy with his portfolio performance and repeatedly said his principal investment was in the "red."
"I am selling everything and for a month I was working on a different approach and totally different set up with stocks. I will keep you all updated. Not posting actual brokerage as I did last time. In a span of a last month that I would consider a great months for stocks it did not worked. And I developed a new strategy. So I am done with this."
Asked how much time it took to save money for his investment, the Redditor said:
"It took 13 years to save one Million as a disposable amount that I can use to try / test strategies. Moneys were made outside of stocks. So far stocks is in a red for me."
Later in the discussion, it was revealed exactly how much his portfolio was in the red, when someone commented:
"I bet you he started with one million and he's down 35k in red."
To this, the investor replied:
"Your findings are correct."
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Nonetheless, raking in over $100,000 annually in dividends impressed many and the investor was flooded with questions and requests for advice. Let's dig deeper and see some of the top holdings in this portfolio.
BlackRock Multi-Sector Income Trust