How to Generate Retirement Income From a Portfolio

How to Generate Retirement Income From a Portfolio

Planning is a key in generating income from a retirement portfolio

Are you like many, wondering how to generate retirement income from a portfolio?  It can seem like a daunting question, but the answer is resoundingly simple.

Financial Independence Number

By now, you should have your financial independence number.  Besides, 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.

How to Generate Retirement Income From a Portfolio

In short, dividends.  Investing in a dividend portfolio can be an incredibly valuable income-producing tool in retirement!

First, a dividend is CASH paid to you by companies just because you own the stock.  Then, the company stock is held in your retirement portfolio and generates dividend income.  Third, these dividends are usually paid on a monthly, quarterly, or annual basis.  Lastly, healthy companies generally aim to increase the dividend regularly – this helps inflationary concerns.

How to Set Up a Retirement Portfolio and Generate Income

I have created a list of 28 companies in the United States that pay a healthy dividend.  To be sure, these numbers are valid from the market open on March 5, 2019.

If you were to buy an equal proportion of these companies this morning, you would expect an average yield of 4.59%.  For example, $4,590 annually for every $100,000 invested.  Of course, this is an equally weighted retirement income portfolio.

To be sure, this is the income generated in your retirement portfolio!  For example, with $1,000,000 invested, you would expect $45,900 annually, or about $3,825/mo.

Sample Dividend Portfolio – Your Income in Retirement

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:  Notably, this portfolio is for educational/informational purposes only.  We are not providing stock suggestions. Rather, we are displaying the income potential from this sample retirement portfolio as of March 5, 2019. Lastly, always invest with the advice of a professional.

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One Response

  1. […] You can invest in many different things.  For instance, you can invest in a rental home, stocks that pay dividends, CD/GIC’s, and so on.  Also, I recommend consulting with an investment professional who has some form of fiduciary duty to best assist you further with investments. […]

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