Can you live without benefits completely? This question piques the interest of millions of young Americans who are thinking about early retirement and breaking away from their 9-to-5 jobs.
A few days ago, someone on r/Dividends – a Reddit discussion board related to dividend investing – asked if anyone on the forum lived off dividends.
“I have yet to hear the testimony of a person who has reached the point of living off his shares. If you are outside, can you talk about your story? What is it like to be free? How long have you invested?” the post said.
The question received many answers, many investors shared their personal stories and advice. One answer stood out and got our attention.
The investor, who said he is 58 years old and retired, answered the question by saying that he has lived on dividends for about three years.
“I started investing 37 years ago. Retiring without benefits is great but it's not the same as living on any other source of income like social security. I saved and invested very well over the years. I never focused on benefits until the end. five years or more I don't suggest that people the new ones did so,” he said.
An investor shared how he was able to grow his wealth through investing, which led to his retirement:
“My biggest break was to invest in early 2020 because I felt the market was too expensive. That was a lot of luck but it worked out well. March 2020 was great. I spent between $1-2M in stocks in about 30 days and the market rally after that ensured I took retirement.”
The investor also stressed that young investors should focus on total profit instead of just dividend income.
“I'm not a bogglehead or anti-dividend. I'm just saying that until you're close to needing money to survive, focus on total return. But don't interpret that as just growth. Dividends are good, you just never know.” I have to do it until later,” he added.
An investor has been asked to share details of his portfolio. He shared several stock and ETF names “from memory,” saying his portfolio yield was about 8%.
AbbVie
According to the portfolio information he shared, AbbVie Inc (NYSE:ABBV) was one of the stocks in the 58-year-old dividend investor's portfolio. AbbVie has paid 3% dividends and almost 50 years of consecutive increases. The stock has gained nearly 42% over the past year.
Altria
Altria Group Inc (NYSE:MO) paid a dividend of 8% compared to the previous trading day. Altria Group Inc (NYSE:MO) jumped recently after the company reported third-quarter results ahead of Wall Street's expectations.
Real Income
With nearly 30 consecutive years of dividend growth and a 5% yield, Realty Income Corp (NYSE:O) is one of the most popular monthly dividend stocks among income investors on Reddit. The 58-year-old retiree living on benefits said the REIT is part of his portfolio.
Check it out:
While Realty Income is undoubtedly a solid choice for investors looking for a steady monthly dividend, it's important to remember that publicly traded stocks are subject to market volatility. For those who want to diversify their income streams and reduce exposure to market volatility, investing in real estate through platforms like You've Arrived is worth considering.
Arrival allows people to invest in rental property shares for as little as $100, providing the opportunity for monthly rental income and long-term appreciation without the hassles of owning a property.. With over $1 million in dividends paid last quarter and a growing selection of properties across a variety of markets, Arrived offers an attractive alternative for investors looking to build a diversified real estate portfolio.
BlackRock
Investment giant BlackRock Inc. (NYSE:BLK) was also part of the portfolio of the retired investor living on benefits. BlackRock's profits have increased by 9.5% per year over the past five years. As of 2023, the company has raised its payout for 14 straight years.
PepsiCo
PepsiCo Inc. (NASDAQ:PEP) is among the safest and most reliable stocks trading on the market, with more than 50 consecutive years of dividend growth. However, PepsiCo Inc. (NASDAQ:PEP) recently reported mixed third-quarter results and lowered its outlook for organic sales growth in 2024.
The target
Another dividend king on the list, Target Corp (NYSE:TGT) has increased its payout for more than 50 years without a break and is 3%. It was a notable stock in the portfolio of the 58-year-old retiree living on benefits.
Procter & Gamble
Procter & Gamble Co (NYSE:PG) has paid dividends for 68 consecutive years with an annual yield of 2.42 %. The stock is up nearly 10% over the past year.
Trending: These five businessmen are worth $223 billion – they all believe in one platform that offers a target yield of 7-9% with monthly benefits
Power Transfer
The company Energy Transfer LP (NYSE:ET) paid a dividend of 8 %. The company is protected from volatile asset markets as revenue comes from fee-based contracts. It was part of the portfolio of an investor who lived on dividends.
Schwab US Dividend Equity ETF
The 58-year-old retired investor said he had about 3,500 shares of the Schwab US Dividend Equity ETF (NYSE:SCHD) in his portfolio. The ETF tracks the Dow Jones US Dividend 100 Index and gives investors exposure to some of the top US-traded stocks, including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie . Since SCHD shares pay high dividends, they are suitable for investors nearing retirement who want consistent dividend income.
JPMorgan Nasdaq Equity Premium Income ETF
The 58-year-old equity investor said he has 8,500 shares of JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) in his portfolio. JEPQ is a high yield ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates additional income by selling call options. It yields about 9%.
Virtus InfraCap US Preferred Stock ETF
The Virtus InfraCap US Preferred Stock ETF (NYSE:PFFA) targets income generation and capital appreciation by investing in US stocks with a market cap of over $100 million. The fund uses about 20% to 30% leverage to maximize income potential. paid a dividend of 8.8 %. The investor said he has approximately 2,000 shares in the fund.
Hercules Capital
Hercules Capital Inc. (NYSE:HTGC) is a business development company with a dividend yield of over 9%. An equity investor had 2,000 shares of the company in his portfolio. Hercules Capital has more than a decade of equity growth. Since 2019, the company has paid 16 special dividends. The company provides high-yield corporate debt to emerging biotech and software companies. Historically, Hercules' corporate selection has been strong, with a very low level of default.
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This article 58-Year-Old Retiree Who Lives Without Stocks Shares His Portfolio: 12 Top Stocks, ETFs appeared on Benzinga.com
