World Stock Watch

Unlocking the Power of Dividend Investing: A Proven Path to Financial Freedom

In a market dominated by tech growth stocks, dividend investing often takes a backseat. However, savvy investors know that solid income-generating stocks are essential for building wealth over the long term. According to a report by Richard C. Young Investment Advisors, dividends and reinvested dividends have accounted for approximately 60% of the S&P 500’s total return over the past 40 years.

A Real-Life Example of Dividend Investing Success

A dividend investor recently shared his impressive income report on the r/Dividends community on Reddit, revealing that he earns around $5,300 per month in dividend income. His portfolio, worth roughly $880,368, has taken about a year to grow from $4,000 to $5,300 in monthly dividend income.

The Investor’s Strategy for Selecting Dividend Stocks

When asked about his approach to choosing dividend stocks, the investor revealed that he focuses on the following key factors:

• A yield of over 3%
• Dividend growth of at least 3-4% to keep pace with inflation
• The stock price trend over the past five years
• Brand power and the company’s position in its industry
• Whether the company provides an essential service or product

Top 6 High-Yield REIT Stocks in the Investor’s Portfolio

The investor’s portfolio features a diverse range of high-yield REIT stocks, including:

1. Arbor Realty Trust (NYSE:ABR): A mortgage REIT with a dividend yield of over 11%
2. Medical Properties Trust (NYSE:MPW): A healthcare-focused REIT with a yield of over 6.5%
3. Realty Income (NYSE:O): A monthly dividend stock with a yield of over 5% and a history of raising dividends for 30 consecutive years
4. Stag Industrial (NYSE:STAG): An industrial REIT with a dividend yield of around 3.8%
5. VICI Properties (NYSE:VICI): A real estate investment trust focusing on casinos, entertainment, and hospitality facilities, with a yield of around 5.2%
6. WP Carey Inc (NYSE:WPC): A net lease REIT with a dividend yield of 5.8% and a diverse portfolio of properties across the US, Europe, and other regions.

A New Opportunity for Income-Seeking Investors

In today’s interest rate environment, income-seeking investors can earn massive yields through private credit funds. Arrived Homes, a Jeff Bezos-backed investment platform, has launched its Private Credit Fund, offering access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. With a minimum investment of only $100, this opportunity is more accessible than ever.