Marketdash
Back to News

How One Investor Built a $10,000 Monthly Dividend Stream in 10 Years: 'Everything Else Is Just Numbers'

MarketDash Editorial Team
12 hours ago
A state university employee reveals how disciplined investing turned a consistent dollar-cost averaging strategy into a million-dollar portfolio generating over $12,000 in monthly dividends, with heavy exposure to high-yield covered call ETFs.

When AI stocks zigzag and inflation stays stubborn, something interesting happens: investors start remembering that boring, predictable cash payments are actually pretty great. According to Bloomberg, citing 22V Research, that's exactly what's happening now as money flows into companies and funds that deliver consistent payouts.

Last month, a particularly successful dividend investor pulled back the curtain on r/Dividends, a 246,000-member Reddit community dedicated to income investing. The headline? He hit his goal of $10,000 in monthly dividend income after roughly a decade of systematic investing. Plot twist: his actual monthly dividend income now sits at about $12,400, with a total portfolio value around $1 million.

The investor, who describes himself as "far from retirement" and works for a state university, shared both his portfolio screenshots and his philosophy. "I've been dollar cost averaging for 10 years," he wrote. "The strategy is be disciplined. Everything else is just numbers."

That's refreshingly simple advice in a world of complex trading algorithms and hot stock tips. But what's he actually holding? Turns out, his portfolio leans heavily on a specific family of high-income ETFs that use options strategies to juice their yields. Let's break down the major positions.

The Bitcoin Play With a 27% Distribution Rate

NEOS Bitcoin High Income ETF (CBOE: BTCI) gives investors direct exposure to Bitcoin through exchange-traded products. The fund sports a distribution rate around 27% and pays monthly. That's an eye-popping yield, though it comes with the corresponding volatility you'd expect from crypto exposure.

Tech Exposure With Income Generation

NEOS Nasdaq-100 High Income ETF (QQQI) takes a different approach. It provides exposure to Nasdaq 100 companies while generating additional income by selling covered call options on the index. Essentially, the fund owns the stocks but sells the right for someone else to buy them at a higher price, collecting premiums in exchange for capping some upside potential.

Gold With a Monthly Check

NEOS Gold High Income ETF (CBOE: IAUI) offers direct gold exposure through gold exchange-traded products. The fund delivers a distribution rate around 12% with monthly payments and has climbed 11% year-to-date. It's a way to bet on gold's safe-haven appeal while collecting regular income.

The S&P 500 Income Booster

NEOS S&P 500 High Income ETF (CBOE: SPYI) might be the most interesting holding for traditional equity investors. This covered call ETF invests in top S&P 500 companies and generates extra income by selling call options on those stocks. SPYI carries a dividend yield of approximately 12% and pays monthly.

The fund's biggest holdings read like a who's who of mega-cap tech: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Tesla (TSLA), Alphabet (GOOG, GOOGL), and Broadcom (AVGO). You're essentially owning the market's dominant companies while collecting enhanced income from the options strategy.

Treasury Bills With Options Juice

NEOS Enhanced Income 1-3 Month T-Bill ETF (NYSE: CSHI) rounds out the portfolio with a lower-risk approach. The fund invests in short-term Treasury bills and generates additional income by selling and buying put options on the S&P 500. It's a way to earn more than the standard T-bill rate while maintaining relatively conservative positioning.

The common thread across these holdings? They're all engineered for income generation, mostly through options strategies that trade some upside potential for consistent cash flow. The covered call approach works particularly well in sideways or moderately bullish markets, though it can lag in explosive rallies when the calls get exercised.

What makes this investor's story compelling isn't exotic stock picks or market timing genius. It's the unglamorous discipline of consistently investing over a decade, letting compound returns and reinvested dividends do their work. Ten years of dollar-cost averaging through bull markets, bear markets, and everything in between.

The timing resonates with broader market trends. As 22V Research noted, shifting risk appetites are driving capital toward steady income-producing investments. When growth stocks feel unpredictable and inflation erodes purchasing power, a reliable monthly payment becomes more attractive. The investor's portfolio reflects that preference taken to its logical conclusion: high-yield funds that prioritize income over maximum capital appreciation.

Whether this exact strategy makes sense for every investor depends on personal circumstances, tax situations, and risk tolerance. Those high distribution rates come with tradeoffs, including potential underperformance in strong bull markets and tax complications from monthly distributions. But for someone focused on building sustainable monthly income rather than maximizing total returns, the approach clearly worked.

The real lesson isn't about which specific ETFs to buy. It's about having a plan and sticking with it long enough for the numbers to compound into something meaningful. As the investor put it: be disciplined. Everything else is just numbers.

Back to News

How One Investor Built a $10,000 Monthly Dividend Stream in 10 Years: 'Everything Else Is Just Numbers'

MarketDash Editorial Team
12 hours ago
A state university employee reveals how disciplined investing turned a consistent dollar-cost averaging strategy into a million-dollar portfolio generating over $12,000 in monthly dividends, with heavy exposure to high-yield covered call ETFs.

When AI stocks zigzag and inflation stays stubborn, something interesting happens: investors start remembering that boring, predictable cash payments are actually pretty great. According to Bloomberg, citing 22V Research, that's exactly what's happening now as money flows into companies and funds that deliver consistent payouts.

Last month, a particularly successful dividend investor pulled back the curtain on r/Dividends, a 246,000-member Reddit community dedicated to income investing. The headline? He hit his goal of $10,000 in monthly dividend income after roughly a decade of systematic investing. Plot twist: his actual monthly dividend income now sits at about $12,400, with a total portfolio value around $1 million.

The investor, who describes himself as "far from retirement" and works for a state university, shared both his portfolio screenshots and his philosophy. "I've been dollar cost averaging for 10 years," he wrote. "The strategy is be disciplined. Everything else is just numbers."

That's refreshingly simple advice in a world of complex trading algorithms and hot stock tips. But what's he actually holding? Turns out, his portfolio leans heavily on a specific family of high-income ETFs that use options strategies to juice their yields. Let's break down the major positions.

The Bitcoin Play With a 27% Distribution Rate

NEOS Bitcoin High Income ETF (CBOE: BTCI) gives investors direct exposure to Bitcoin through exchange-traded products. The fund sports a distribution rate around 27% and pays monthly. That's an eye-popping yield, though it comes with the corresponding volatility you'd expect from crypto exposure.

Tech Exposure With Income Generation

NEOS Nasdaq-100 High Income ETF (QQQI) takes a different approach. It provides exposure to Nasdaq 100 companies while generating additional income by selling covered call options on the index. Essentially, the fund owns the stocks but sells the right for someone else to buy them at a higher price, collecting premiums in exchange for capping some upside potential.

Gold With a Monthly Check

NEOS Gold High Income ETF (CBOE: IAUI) offers direct gold exposure through gold exchange-traded products. The fund delivers a distribution rate around 12% with monthly payments and has climbed 11% year-to-date. It's a way to bet on gold's safe-haven appeal while collecting regular income.

The S&P 500 Income Booster

NEOS S&P 500 High Income ETF (CBOE: SPYI) might be the most interesting holding for traditional equity investors. This covered call ETF invests in top S&P 500 companies and generates extra income by selling call options on those stocks. SPYI carries a dividend yield of approximately 12% and pays monthly.

The fund's biggest holdings read like a who's who of mega-cap tech: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Tesla (TSLA), Alphabet (GOOG, GOOGL), and Broadcom (AVGO). You're essentially owning the market's dominant companies while collecting enhanced income from the options strategy.

Treasury Bills With Options Juice

NEOS Enhanced Income 1-3 Month T-Bill ETF (NYSE: CSHI) rounds out the portfolio with a lower-risk approach. The fund invests in short-term Treasury bills and generates additional income by selling and buying put options on the S&P 500. It's a way to earn more than the standard T-bill rate while maintaining relatively conservative positioning.

The common thread across these holdings? They're all engineered for income generation, mostly through options strategies that trade some upside potential for consistent cash flow. The covered call approach works particularly well in sideways or moderately bullish markets, though it can lag in explosive rallies when the calls get exercised.

What makes this investor's story compelling isn't exotic stock picks or market timing genius. It's the unglamorous discipline of consistently investing over a decade, letting compound returns and reinvested dividends do their work. Ten years of dollar-cost averaging through bull markets, bear markets, and everything in between.

The timing resonates with broader market trends. As 22V Research noted, shifting risk appetites are driving capital toward steady income-producing investments. When growth stocks feel unpredictable and inflation erodes purchasing power, a reliable monthly payment becomes more attractive. The investor's portfolio reflects that preference taken to its logical conclusion: high-yield funds that prioritize income over maximum capital appreciation.

Whether this exact strategy makes sense for every investor depends on personal circumstances, tax situations, and risk tolerance. Those high distribution rates come with tradeoffs, including potential underperformance in strong bull markets and tax complications from monthly distributions. But for someone focused on building sustainable monthly income rather than maximizing total returns, the approach clearly worked.

The real lesson isn't about which specific ETFs to buy. It's about having a plan and sticking with it long enough for the numbers to compound into something meaningful. As the investor put it: be disciplined. Everything else is just numbers.