Generating Income from your Portfolio in Retirement

Generating Income from your Portfolio in Retirement

By now, you should have your financial independence number.  If you don’t already have it, click here to get it!

As you know, your financial independence number is an estimate of how much you need to live off (the dividends) generated by your portfolio, forever.

Creating and self-managing dividend portfolio can be a valuable income producing tool in retirement!

A dividend is CASH paid to you by companies just because you own the stock.  These dividends are usually paid on a monthly, quarterly, or annual basis.  Healthy companies generally aim to increase the dividend on a regular basis – this helps inflationary concerns.

I have created a list of 28 companies in the United States that pay a good dividend.  The numbers are effective at market open on March 5, 2019.

If you were to buy these companies this morning (eg: Divide your portfolio in 28, and buy the proportion in each stock) , you would expect an average yield of 4.59% or $4,590 annually for every $100,000 invested.  With $1,000,000 invested, you would expect $45,900 annually, or about $3,825/mo.

 

Sample Portfolio

Company Yield as of March 5, 2019
AbbVie (NYSE:ABBV) 5.35%
Altria Group (NYSE:MO) 6.21%
BP (NYSE:BP) 5.79%
Broadcom (NASDAQ:AVGO) 3.83%
Campbell Soup (NYSE:CPB) 4.26%
Chevron (NYSE:CVX) 3.99%
China Mobile (NYSE:CHL) 3.91%
China Petroleum & Chemical (NYSE:SNP) 4.82%
Coty (NYSE:COTY) 4.44%
Exxon Mobil (NYSE:XOM) 4.18%
Fibria Celulose (NYSE:FBR) 8.19%
GAP (NYSE:GPS) 3.92%
Gilead Sciences (NASDAQ:GILD) 3.47%
IBM (NYSE:IBM) 4.51%
Invesco (NYSE:IVZ) 6.30%
JPMorgan Chase & Co. (NYSE:JPM) 3.05%
Lamar Advertising (NASDAQ:LAMR) 4.74%
National Retail Properties (NYSE:NNN) 3.80%
Nielsen (NYSE:NLSN) 5.36%
Pfizer (NYSE:PFE) 3.35%
Royal Bank of Canada (NYSE:RY) 3.71%
The Coca-Cola (NYSE:KO) 3.45%
The Western Union (NYSE:WU) 4.26%
Total (NYSE:TOT) 4.35%
Vereit (NYSE:VER) 6.78%
Verizon Communications (NYSE:VZ) 4.23%
Wells Fargo & Co (NYSE:WFC) 3.67%
Westrock (NYSE:WRK) 4.63%
Average Yield 4.59%

Disclaimer:  This is for educational / informational purposes only.  Always invest with the advice of a professional.

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