15 Dividend Stocks For Retirees and Newly Retired (2023)

Retirees have a different set of needs than other investors. Retirees commonly want income from their investments, to help offset some of the income they are no longer receiving from employment. With rising costs of housing and health care, among other necessities, income is especially important.

But investing for income is no easy task nowadays, due to persistently low interest rates, and a stock market near record highs which has resulted in fairly low dividend yields.

Fortunately, there are still many suitable high dividend stocks that provide attractive levels of income for retirees, aside from rental properties. These 15 stocks have above-average dividend yields that beat the S&P 500 average, safe dividends that are nearly recession-proof, and also have the ability to raise their dividends over time.

Retirement Stock #1: Chevron Corporation (CVX)

Chevron is a well-known dividend growth stock, as it is on the prestigious Dividend Aristocrats list.

The company has increased its dividend for over 30 years in a row. Chevron is an integrated super-major, with large upstream (exploration and production) and downstream (refining and marketing) segments.

In the 2021 second quarter, Chevron grew its production 4.6% over the prior year’s quarter. The average realized price of oil of Chevron essentially tripled over last year’s quarter and thus Chevron switched from an adjusted loss of -$1.56 per share to an adjusted profit of $1.71 per share.

Shares currently yield 5.1%.

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Retirement Stock #2: Altria Group (MO)

Altria Group is a legendary dividend stock. It has increased its dividend for over 50 years, making the stock a Dividend King.

The company manufactures tobacco products including the Marlboro cigarette brand in the U.S., as well as chewing tobacco and cigars.

In response to the long-running trend of declining smoking rates in the U.S., Altria has invested heavily in adjacent categories for growth. Altria purchased a 55% equity stake in Canadian marijuana producer Cronos Group, invested nearly $13 billion for a 35% equity stake in e-vapor manufacturer Juul Labs, and the company owns 10% of Anheuser-Busch InBev (BUD).

Altria will also continue to expand its own heated tobacco products, IQOS and Marlboro HeatSticks, in 2021. Shares currently yield 7.7%.

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Retirement Stock #3: Exxon Mobil (XOM)

Like Chevron, Exxon Mobil is also a Dividend Aristocrat and is a global energy super-major.

In the second quarter, Exxon’s production in the Permian grew 34% over last year’s quarter but total production dipped -2% due to maintenance activity. However, the chemical segment posted record earnings of $2.3 billion thanks to high margins.

In addition, the upstream segment thrived thanks to the rally of the price of oil, which resulted from the deep production cuts of OPEC and Russia and the recovery from the pandemic. As a result, Exxon switched from an adjusted loss of -$0.70 per share in last year’s quarter to an adjusted profit of $1.10 per share.

Exxon Mobil stock yields 5.7%.

Retirement Stock #4: AT&T Inc. (T)

AT&T is a telecom giant with a 7.4% dividend yield. AT&T is a telecommunications giant, as its core Communications segment provides mobile, broadband and video to 100 million U.S. consumers and 3 million businesses.

In the 2021 second quarter, AT&T generated 7% growth in revenue and adjusted earnings-per-share.

AT&T has announced a deal to combine WarnerMedia with Discovery, Inc. (DISCA) to create a new global entertainment company. AT&T will receive $43 billion in a combination of cash, securities and retention of debt.

We believe these various deals with allow AT&T to simplify its operations, become more efficient, and return to its core focus on telecom services such as the 5G rollout. Shares currently yield over 7%.

Retirement Stock #5: Procter & Gamble (PG)

Procter & Gamble, headquartered in Cincinnat, Ohio was founded way back in 1837. Today they operate large manufacturing facilities in over 80 countries. As a result, they have a history of impacting local property prices. Darren Robertson of Northern Virginia Home Pro, explains that property prices have a history of skyrocketing following tech giants expanding and opening offices in the area.

is a consumer staples giant with a large portfolio of leading brands. Some of its notable brands include Pampers, Tide, Bounty, Charmin, Gillette, Old Spice, Febreze, Crest, Oral-B, Olay, and many more. The company generated $71 billion in sales in fiscal 2020.

Procter & Gamble has paid a dividend for 130 years and increased its dividend for 64 consecutive years. This is due in large part to the company’s ability to withstand recessions.

In the most recent quarter, P&G grew sales by 7% year-over-year. Adjusted earnings-per-share increased 10.5% for fiscal 2021. Procter & Gamble also provided fiscal 2022 guidance, anticipating 2% to 4% sales growth and 3% to 6% adjusted EPS growth. P&G is a Dividend King.

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Retirement Stock #6: McDonald’s Corporation (MCD)

McDonald’s is the world’s largest publicly-traded fast food company, with about 39,000 locations in over 100 countries. Approximately 93% of the stores are independently owned and operated. Its accelerated franchising activity over the past few years has helped boost McDonald’s profit margins, and overall earnings-per-share.

McDonald’s competitive advantage is its global scale, immense network of restaurants, well-known brand and real estate assets. McDonald’s is one of the most universally-recognized and most valuable brands in the world.

McDonald’s has raised its dividend every year since paying its first dividend in 1976, qualifying the stock as a Dividend Aristocrat. Shares currently yield 2.2%.

Retirement Stock #7: Verizon Communications (VZ)

Verizon Communications is one of the largest wireless carriers in the country. Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers ~300 million people and 98% of the U.S, as it continues its rollout of 5G service.

One of Verizon’s key competitive advantages is that it is often considered the best wireless carrier in the U.S. This is evidenced by the company’s wireless net additions and very low churn rate.

In the 2021 second quarter, Verizon’s revenue grew 11.2% to $33.8 billion, beating expectations by $1.1 billion. Adjusted earnings-per-share of $1.37 was a 16.1% increase from the prior year, and $0.07 ahead of estimates. Verizon stock offers a high yield of 4.7%.

Retirement Stock #8: 3M Company (MMM)

3M is a diversified global industrial manufacturer. Its most popular consumer brands are Post-It and Scotch tape. In all, 3M manufactures more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world.

3M reported second quarter earnings results on 7/27/2021. Revenue improved 24.7% to just under $9 billion and topped expectations by $360 million. Adjusted earnings-per-share of $2.59 compared favorably to adjusted earnings-per-share of $1.78 in the previous year and was $0.31 above estimates. Organic growth was 21.4% for the quarter, with each segment posting at least a high-teens growth rate.

3M has increased its dividend for over 60 consecutive years, making it a Dividend King. Shares currently yield 3.3%.

Retirement Stock #9: Johnson & Johnson (JNJ)

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Johnson & Johnson is a diversified health care company and a mega-cap stock with a market cap above $400 billion. J&J is a market leader in the area of pharmaceuticals (~49% of sales), medical devices (~34% of sales) and consumer products (~17% of sales). Johnson & Johnson generates annual sales in excess of $90 billion.

The company has built a dominant business model, and has produced 8% average annual earnings-per-share growth over the past 20 years. Johnson & Johnson generated over $20 billion in free cash flow last year.

Johnson & Johnson has increased its dividend for 59 consecutive years. With over 50 consecutive years of dividend increases, Johnson & Johnson is on the exclusive list of Dividend Kings. Shares currently yield 2.6%.

Retirement Stock #10: The Coca-Cola Company (KO)

Coca-Cola is a global beverage giant. It is the world’s largest beverage company, as it owns or licenses more than 500 unique non-alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide. Its brands account for about 2 billion servings of beverages worldwide every day, producing roughly $36 billion in annual revenue.

Acquisitions are a key component of Coca-Cola’s future growth strategy. For example, Coca-Cola acquired Costa in a $4.9 billion acquisition, which gave it instant exposure to coffee, a high-growth market.

Coca-Cola stock yields 3.1% and the company has increased its dividend for over 50 years in a row.

Retirement Stock #11: PepsiCo (PEP)

PepsiCo is a global food and beverage company. It has a diversified business model that is roughly evenly split between food and beverages. The company’s major brands include Pepsi, Mountain Dew, Frito-Lay, Gatorade, Tropicana, and Quaker. PepsiCo has 23 brands that each generate at least $1 billion in annual sales.

In the 2021 third quarter, PepsiCo’s revenue grew 11.6% to $20.2 billion, which was $800 million above expectations. Adjusted earnings-per-share of $1.79 was a 7.8% improvement year-over-year and $0.06 ahead of estimates. Organic sales were higher by 9%. Beverages overall had an 8% increase in volumes while food and snack was up 4%.

Retirement Stock #12: Consolidated Edison (ED)

Consolidated Edison is a major U.S. utility that delivers electricity, natural gas, and steam to its customers in New York City and Westchester County. It has annual revenues of about $12 billion.

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In the 2021 second quarter, revenue improved 9.2% to $3 billion, beating expectations by $140 million. Adjusted net income of $183 million, or $0.53 per share, was $0.09 below expectations.

Utility stocks are widely purchased for their stable business models and reliable dividends, and ConEd is no exception. It has increased its dividend for over 40 consecutive years, making it a Dividend Aristocrat. Shares currently yield 4.2%.

Retirement Stock #13: Kimberly-Clark Corporation (KMB)

The Kimberly-Clark Corporation is a global consumer products company that makes disposable consumer products, including paper towels, diapers, and tissues. It manufactures many popular brands including Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott, Cottonelle, and Viva.

Kimberly-Clark reported second quarter earnings on July 23rd, 2021. Total sales were up 2% year-over-year to $4.7 billion, as forex added 3% to the top line, while organic sales declined 3%. Kimberly-Clark is being challenged by rising raw materials costs, but the company has the ability to pass this along through price increases.

Kimberly-Clark has increased its dividend for 49 consecutive years, including a solid 6.5% raise for 2021. With another yearly increase, Kimberly-Clark will join the list of Dividend Kings. Shares currently yield 3.5%.

Retirement Stock #14: American Electric Power (AEP)

American Electric Power was founded in 1906 and has evolved its business model along with changing technologies to offer customers safe, reliable, and affordable energy. It is one of the largest regulated utilities in the United States and offers electricity generation, transmission, and distribution services in 11 states. Its energy sources are coal, natural gas, renewables, and nuclear.

The company serves 5.5 million customers and has over $80 billion in assets, with 40,000 miles of transmission. AEP has paid 444 consecutive quarterly dividends on its common stock. It has paid a cash dividend on its common stock every quarter since July 1910. Shares currently yield 3.5%.

Retirement Stock #15: AbbVie Inc. (ABBV)

AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology and virology. AbbVie was spun off by Abbott Laboratories (ABT) in 2013. Since then, AbbVie has become one of the largest biotechnology companies, especially following the closing of its acquisition of Allergan.

Since the spin-off, AbbVie has more than tripled its earnings per share, from $3.14 in 2013 to $10.56 in 2020. It has continued to generate growth this year. In the most recent quarter, revenue of $14.0 billion increased 34% from the previous year’s quarter. AbbVie earned $3.11 per share during the second quarter, up 33% year-over-year.

AbbVie stock has a high dividend yield of 4.7%.

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FAQs

How big of a portfolio do I need to live off dividends? ›

You can expect an investment portfolio to pay out dividends roughly between 1% to 6% of its value each year. At those dividend yields, you'd need a portfolio value between $100,000 and $600,000 to make $500 per month in dividends.

What are the 5 highest dividend paying stocks? ›

All dividend and yield information is as of October 27, 2022.
  1. V.F. Corporation (VFC) ...
  2. Devon Energy (DVN) ...
  3. Dow Inc. ...
  4. Best Buy (BBY) ...
  5. Verizon Communications (VZ) ...
  6. AT&T (T) ...
  7. Intel (INTC) ...
  8. Philip Morris International (PM)
28 Oct 2022

What is the best dividend stock of all time? ›

Best Dividend Stocks of All Time: UnitedHealth Group (UNH)

Its free cash flow in the trailing 12 months was $20.5 billion, more than plenty to pay out $10.5 billion in dividends and share repurchases during the third quarter. One of UnitedHealth's key metrics is the medical care ratio.

Which company gives highest dividend in 2022? ›

  • INEOS Styrolution India Ltd. – ...
  • Vedanta Ltd. – ...
  • Indian Oil Corporation Ltd. – ...
  • Rural Electrification Corporation Ltd. – ...
  • Power Finance Corporation Ltd. – ...
  • National Mineral Development Corporation Ltd. – ...
  • Steel Authority of India Ltd. – ...
  • Bharat Electronics Ltd. –
19 Oct 2022

How do people live off dividends without paying taxes? ›

How can you avoid paying taxes on dividends?
  1. Stay in a lower tax bracket. ...
  2. Invest in tax-exempt accounts. ...
  3. Invest in education-oriented accounts. ...
  4. Invest in tax-deferred accounts. ...
  5. Don't churn. ...
  6. Invest in companies that don't pay dividends.
6 Sept 2022

Do people actually live off dividends? ›

Yes, some people are able to cover their expenses with cash flow from dividend income. It's not easy and it takes a long-term focus, but it's definitely possible. How much money do you need to live off dividends?

How to pick a good dividend stock? ›

If you plan to invest in dividend stocks, look for companies that boast long-term expected earnings growth between 5% and 15%, strong cash flows, low debt-to-equity ratios, and industrial strength.

What stocks give back the most dividends? ›

9 highest-paying dividend stocks in the S&P 500:
  • Pioneer Natural Resources Co. (PXD)
  • Lumen Technologies Inc. (LUMN)
  • Altria Group Inc. (MO)
  • Vornado Realty Trust (VNO)
  • Devon Energy Corp. (DVN)
  • AT&T Inc. (T)
  • Simon Property Group Inc. (SPG)
  • Verizon Communications Inc. (VZ)
12 Sept 2022

What is a good dividend yield? ›

A good dividend yield is high enough to meet your current income needs. But low enough to suggest a company's dividend is not at risk. Dividend yields that meet these requirements will typically fall between 2% and 5%. Since a stock with a yield of less than 2% may not provide the investor with enough current income.

What stock has the highest monthly dividend? ›

High-Yield Monthly Dividend Stock #4: Ellington Residential Mortgage REIT (EARN) High-Yield Monthly Dividend Stock #3: AGNC Investment Corporation (AGNC) High-Yield Monthly Dividend Stock #2: Broadmark Realty Capital (BMRK) High-Yield Monthly Dividend Stock #1: ARMOUR Residential REIT (ARR)

What has the highest monthly dividend? ›

Top monthly dividend stocks for 2022
Monthly Dividend StockTicker SymbolDividend Yield
LTC Properties(NYSE:LTC)6.3%
Pembina Pipeline(NYSE:PBA)7.9%
Realty Income(NYSE:O)4.3%
SL Green(NYSE:SLG)5.2%
4 more rows

Can you get rich off dividend stocks? ›

Can an investor really get rich from dividends? The short answer is “yes”. With a high savings rate, robust investment returns, and a long enough time horizon, this will lead to surprising wealth in the long run. For many investors who are just starting out, this may seem like an unrealistic pipe dream.

Which stock will give highest returns in 2022? ›

Top Stocks
  • Reliance Industries.
  • Tata Consultancy Services.
  • HDFC Bank.
  • Infosys.
2 Nov 2022

What is the best performing stock of 2022 so far? ›

Best S&P 500 stocks as of November 2022
Company and ticker symbolPerformance year to date (percent)
ExxonMobil (XOM)81.1%
Marathon Petroleum (MPC)77.6%
Devon Energy (DVN)75.6%
ConocoPhillips (COP)74.7%
6 more rows
1 Nov 2022

What is the best stock sector for 2022? ›

2022 US sector outlook

Among the top opportunities within sectors: AI, luxury goods, sustainability, bioprocessing, commodities, and REITS. 2021 was another outstanding year for investors in US companies, as the S&P 500® delivered a 29% total return.

What income is exempt from dividends? ›

To what extent were dividends exempt from tax in India? As per section 115BBDA, only dividends in excess of ₹10 lakhs were taxable at 10% in the shareholder's hands. After the Finance Act, 2020 came into the picture, it switched things up for companies and shareholders who receive dividend income.

Should I reinvest dividends in retirement? ›

"Investors should keep reinvesting their dividends after retirement since most dividend payments are not substantial enough to warrant any immediate use by the investor," says Mark Hebner, founder and president of Index Fund Advisors in Irvine, Calif.

How much tax will I pay on my dividends? ›

The dividend tax rates for 2021/22 tax year are: 7.5% (basic), 32.5% (higher) and 38.1% (additional).

How much do you need in dividend stocks to retire? ›

To earn dividends equal to something like four times the $17,420 poverty level for two people, a retiring couple would need approximately $3.5 million in stocks paying 2%. For most people, that will require a lot of discipline and self-sacrifice in order to save and invest starting from a young age.

Can you retire on dividends alone? ›

Yes, you can retire on dividends. However, it first requires a dividend investor to maintain discipline over a long time horizon. By saving consistently and investing in high-quality dividend stocks. Furthermore, some cases will require supplementing those dividend payments.

How long can you live off 1 million dollars? ›

Assuming you will need $40,000 per year to cover your basic living expenses, your $1 million would last for 25 years if there was no inflation. However, if inflation averaged 3% per year, your $1 million would only last for 20 years.

How long should you keep dividend stocks? ›

In order to receive the preferred 15% tax rate on dividends, you must hold the stock for a minimum number of days. That minimum period is 61 days within the 121-day period surrounding the ex-dividend date. The 121-day period begins 60 days before the ex-dividend date.

How many high dividend stocks should I own? ›

Overall, we believe creating a dividend portfolio with 20 to 60 stocks provides a reasonable balance between the need for diversification, a desire to keep trading activity low, and a limited amount of research time to devote to maintaining a portfolio.

What are the downsides of dividend stocks? ›

5 Disadvantage Of Stock Dividends
  • Tax inefficiency.
  • Investment risk.
  • Sector concentration.
  • Dividend policy changes.
  • Investment research.

Is a 5% dividend good? ›

From 2% to 6% is considered a good dividend yield, but a number of factors can influence whether a higher or lower payout suggests a stock is a good investment.

Is a 6% dividend yield good? ›

A 6% annual return is considered pretty good by today's investing standards and typically you have to reach into some riskier places to try and achieve that kind of return year after year after year.

What does a 3% dividend yield mean? ›

The dividend yield is a financial ratio that tells you the percentage of a company's share price that it pays out in dividends each year. For example, if a company has a $20 share price and pays a dividend of $1 per year, its dividend yield would be 5%.

How can I earn 1000 a month in dividends? ›

In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.

Which dividends pay out monthly? ›

7 best monthly dividend stocks to buy now:
  • AGNC Investment Corp. (AGNC)
  • Prospect Capital Corp. (PSEC)
  • Main Street Capital Corp. (MAIN)
  • LTC Properties Inc. (LTC)
  • Broadmark Realty Capital Inc. (BRMK)
  • Ellington Financial Inc. (EFC)
  • EPR Properties (EPR)

What big companies pay a dividend per month? ›

2022 Monthly Dividend Stocks List: All 61 Ranked and Analyzed
  • 2022 Monthly Dividend Stocks List. ...
  • Monthly Dividend Stock #1: Realty Income. ...
  • Monthly Dividend Stock #2: Main Street Capital. ...
  • Monthly Dividend Stock #3: Pembina Pipeline. ...
  • Monthly Dividend Stock #4: Agree Realty. ...
  • Monthly Dividend Stock #5: STAG Industrial.
8 Nov 2022

What dividend pays 300 a month? ›

An investment of about $20,600 should be enough to generate $300 in dividend income every March, June, September, and December.

How much does Warren Buffett make in dividends? ›

Since taking over the role as CEO in 1965, he's led Berkshire Hathaway's Class A shares (BRK. A) to an aggregate return of 3,641,613% as of the end of 2021. For those of you keeping score at home, this works out to an average annual return of 20.1% over 57 years.

Does Warren Buffett reinvest dividends? ›

Berkshire Hathaway received $13.4 billion in dividends in 2021. Reinvested dividends accounted for 84% of the S&P 500's total return from 1960 to 2021. It's better to delay receiving dividend payouts as cash until retirement.

What is the fastest way to grow dividend income? ›

  1. Invest New Cash In Dividend-Paying Stocks To Increase Dividend Income. ...
  2. Receive Dividend Increases To Increase Dividend Income. ...
  3. Reinvest Your Dividends To Increase Dividend Income. ...
  4. Swap Lower-Yielding Stocks For Those With Higher Dividend Yields To Increase Dividend Income. ...
  5. Practice Dollar-Cost Averaging.

Which penny stock will grow in the future 2022? ›

Below is a list of a few penny stocks to buy now that have the potential to become multibagger penny stocks in 2022.
  • Vodafone Idea.
  • Suzlon Energy.
  • Alok Industries.
  • Hemang Resources.
  • Indian Overseas Bank.
20 Oct 2022

What are the 10 best stocks to own in 2022? ›

Stocks With Growth Potential for 2022
  • Mueller Industries Inc. ...
  • First BanCorp (FBP) ...
  • Herc Holdings Inc. (HRI) ...
  • Devon Energy Corp. (DVN) ...
  • Marathon Oil Corp. (MRO) ...
  • Qualcomm Inc. (QCOM) ...
  • Berkshire Hathaway Inc. (BRK-A) ...
  • Micron Technology Inc. (MU)
28 Oct 2022

What is the fastest growing stock in 2022? ›

Best-performing growth stocks
Company Name & SymbolRevenue Growth (Last Qtr vs. Same Qtr Prior Yr)Price Performance (This Yr)
Enphase Energy Inc. (ENPH)80.56%67.81%
Clearfield Inc. (CLFD)83.94%43.89%
Palomar Holdings Inc. (PLMR)38.02%37.35%
UFP Technologies Inc. (UFPT)86.25%33.58%
21 more rows
1 Nov 2022

What should I invest in next in 2022? ›

Going into 2022, among the key market sectors to watch are oil, gold, autos, services, and housing. Other key areas of concern include tapering, interest rates, inflation, payment for order flow (PFOF), and antitrust.

What should I invest in right now 2022? ›

Overview: Top long-term investments in November 2022
  • Growth stocks. Overview: In the world of stock investing, growth stocks are the Ferraris. ...
  • Stock funds. ...
  • Bond funds. ...
  • Dividend stocks. ...
  • Value stocks. ...
  • Target-date funds. ...
  • Real estate. ...
  • Small-cap stocks.
1 Nov 2022

Which sectors will grow in the next 5 years? ›

List of the Top Sectors in India that are Most Likely to Provide Excellent Returns-
  • Healthcare and Insurance Sector. ...
  • Renewable Energy Sector. ...
  • IT Sector. ...
  • Real Estate Sector. ...
  • Fast Moving Consumer-Goods Sector (FMCG) ...
  • Automobile Sector.
19 May 2022

What sectors have done well in 2022? ›

2022 Year to Date Stock Performance by Sector and Industry
Life Insurance117.30 %
Oil And Gas Production93.56 %
Real Estate Investment Trusts92.88 %
Oil Well Services & Equipment92.21 %
Coal Mining74.26 %
1 more row

Which sector shares will grow in 2022? ›

Industry
  • Reliance Industries. Multinational Conglomerate.
  • Tata Consultancy Services (TCS) Information Technology.
  • Infosys. Information Technology.
  • HDFC Bank. Banking.
2 Nov 2022

How much money do I need to make 50000 a year in dividends? ›

That means $650,000 in savings is enough to get a reliable $50,000 dividend stream. The reason why so many investors fall for dividend traps is that they simply look at the yield and then stop there.

How much do I need in dividends to retire? ›

At a 2% yield, a $1 million investment produces $20,000 per year. This is not much more than the federal poverty level for a couple. To earn dividends equal to something like four times the $17,420 poverty level for two people, a retiring couple would need approximately $3.5 million in stocks paying 2%.

Can you make a living off of dividend stocks? ›

Dividends can be used to create passive income in an investment portfolio or grow wealth over the long term through reinvestment. Knowing how to live off dividends may be central to your retirement planning strategy if you want to avoid running out of money while also managing investment risk.

Can you become a millionaire off of dividends? ›

Can an investor really get rich from dividends? The short answer is “yes”. With a high savings rate, robust investment returns, and a long enough time horizon, this will lead to surprising wealth in the long run.

Should I buy dividend stocks for retirement? ›

If you're retired or close to it, there are a lot of good reasons to buy dividend stocks. Not only do you want a reliable income stream as you close out your working years, but now is also a great time to buy dividend stocks. Yields have risen in the market pullback, and many of these top dividend stocks are now cheap.

How can I earn $4000 a month in dividends? ›

In order to make $4000 a month in dividends, you'll need to invest approximately $1,600,000 in dividend stocks. The exact amount will depend on the dividend yields for the stocks you buy for your portfolio. Take a closer look at your budget and decide how much money you can set aside each month to grow your portfolio.

Do you get taxed on dividends? ›

In most cases, dividend income is taxable. Taxpayers will often receive a Form 1099-DIV for all dividends in excess of $10 or more earned from any single entity. In addition, taxpayers must report this income on Schedule B of their Federal tax return if they've received over $1,500.

What is a good retirement monthly amount? ›

But, generally speaking, most experts agree that you will need 70-80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earned $50,000 per year ($4,167 a month) before retiring, you would need approximately $35,000-$40,000 per year in retirement.

How much should a retired person have in stocks? ›

For years, a commonly cited rule of thumb has helped simplify asset allocation. According to this principle, individuals should hold a percentage of stocks equal to 100 minus their age. So, for a typical 60-year-old, 40% of the portfolio should be equities.

What is a good amount of money to have when you retire? ›

Since higher earners will get a smaller portion of their income in retirement from Social Security, they generally need more assets in relation to their income. We estimated that most people looking to retire around age 65 should aim for assets totaling between seven and 13½ times their preretirement gross income.

How much taxes do you pay on dividends? ›

The tax rate on qualified dividends is 0%, 15% or 20%, depending on your taxable income and filing status. The tax rate on nonqualified dividends is the same as your regular income tax bracket. In both cases, people in higher tax brackets pay a higher dividend tax rate.

How many shares of a dividend stocks should I own? ›

While there is no perfect answer, here are the general guidelines we like to follow when building a dividend portfolio: Hold between 20 and 60 stocks to reduce company-specific risk. Roughly equal-weight each position. Invest no more than 25% of your portfolio in any one sector.

What is considered a good dividend yield? ›

A dividend yield of 2% to 4% would be considered good or at least above average. And the best-yielding do better than that, often around 4% to 5%.

How much money do you need to make $1000 a month in dividends? ›

In order to make $1000 a month in dividends, you'll need to invest approximately $400,000 in dividend stocks. The exact amount will depend on the dividend yields of the stocks you buy for your portfolio. Take a closer look at your budget and decide how much money you can set aside each month to grow your portfolio.

What percentage of portfolio should be dividend stocks? ›

The Growth And Income Investor

They shoot to have about 50% of their stock portfolio allocated to dividend stocks. The other 50% is focused on non-dividend paying growth stocks. Of course, there is no magic to the 50% allocation. It can be altered in one direction or the other.

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Author: Ouida Strosin DO

Last Updated: 11/04/2022

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Name: Ouida Strosin DO

Birthday: 1995-04-27

Address: Suite 927 930 Kilback Radial, Candidaville, TN 87795

Phone: +8561498978366

Job: Legacy Manufacturing Specialist

Hobby: Singing, Mountain biking, Water sports, Water sports, Taxidermy, Polo, Pet

Introduction: My name is Ouida Strosin DO, I am a precious, combative, spotless, modern, spotless, beautiful, precious person who loves writing and wants to share my knowledge and understanding with you.