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For many investors, the strategy is simple: invest once and enjoy the rewards for a lifetime. Dividend investing, particularly, has long been a popular approach for those who want a steady income stream.
By carefully selecting dividend-paying stocks, investors can create a portfolio that grows in value in the long run and generates consistent payouts. This strategy mainly appeals to those who want to achieve financial independence, retire early, or enjoy the fruits of their investment without micromanaging their portfolio.
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One investor who has successfully built a portfolio worth $1.05 million in dividend-focused stocks has shared his strategy and top picks in Reddit’s r/Dividends community.
With an annual dividend payment of $36,600 and growing because he’s reinvesting through a dividend reinvestment plan, his portfolio is a mix of growth stocks, low-dividend payers, high-yield dividend stocks and ultra-high-yield investments, each chosen to balance risk and reward.
Let’s take a closer look at the investor’s dividend-paying picks in his portfolio.
Johnson & Johnson
Johnson & Johnson (NYSE:JNJ) is a healthcare giant with a diversified portfolio of medical devices, pharmaceuticals and consumer health products. With a dividend yield of 2.5%, JNJ has a proven dividend increase history.
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Exxon Mobil
Paying around 3.67% in annual dividends, Exxon Mobil (NYSE:XOM) is one of the leading gas and oil companies in the world.
Iron Mountain
Real estate investment trust Iron Mountain (NYSE:IRM) pays 2.83% in annual dividends and specializes in data storage and information management.
Bank of America
Bank of America (NYSE:BAC) is a leading financial institution with a strong presence in investment banking and retail. With annual dividend yields of around 2.26%, BAC is a solid pick for those seeking exposure to the financial sector.
L3Harris Technologies
With a 2.30% dividend yield, L3Harris Technologies (NYSE:LHX) is a contractor focusing on electronic systems and communication. LHX benefits from strong government contracts, making it a reliable pick.
