50-Year-Old Early Retiree Making $175,000 in Dividends Shares Portfolio - 'Now I Spend on Travel, Cars and Doing What I Want'

Dividend investing is back on investors' radar after taking a backseat during the AI-led bull run. With tariff uncertainties and fading momentum in AI stocks, investors are looking for stable dividend-paying companies to navigate the current market turbulence. But it's not easy to find quality dividend stocks as it requires assessing factors like yield, payout ratio, financial stability, and growth potential. 

Let's turn to a dividend investing case study for ideas and inspiration.

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Last month, someone asked income investors on r/Dividends — a Reddit community with 690,000 members — whether it was realistic to live off dividends and how much investment is needed to reach at least $50,000 in annual dividend income. The question also asked Redditors to share how long it takes for the average investor to reach a dividend income that covers basic expenses.

The question received hundreds of comments, but one story caught our eye.

An investor said he was making $175,000 a year in dividends and retired two years ago at the age of 48.

"I'm still not touching them, especially now. I have a small passive business that generates enough to cover my expenses. I've recently gone about 1/3 short term government bonds because I'm VERY worried about a recession," he said.

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The investor, 50, said his total portfolio worth was about $3.7 million.

"I used to make $220k for about 11 years. Saved and invested it and retired at 48. Now I spend my money which comes from dividends on travel, cars and doing what the f— I want," he said in a separate comment on the social platform.

Let's discuss some of the top holdings of the investor.

Schwab U.S. Dividend Equity ETF

The Schwab U.S. Dividend Equity ETF SCHD tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including ConocoPhillips COP, Chevron CVX, Verizon Communications VZ and Bristol-Myers Squibb BMY, among others.

NEOS S&P 500 High Income ETF

NEOS S&P 500 High Income ETF SPYI is a high-yield covered call ETF that pays monthly dividend income. It invests in some of the top S&P 500 companies and generates extra income by selling call options on stocks, generating extra premium income for shareholders. SPYI has a dividend yield of over 12%.

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iShares 0-3 Month Treasury Bond ETF

iShares 0-3 Month Treasury Bond ETF SGOV tracks the performance of U.S. Treasury bonds with maturities of 0-3 months. 

Vanguard FTSE Developed Markets ETF

The Vanguard FTSE Developed Markets ETF VEA provides investors exposure to companies trading in developed markets outside of the U.S., including Canada, Europe and the Pacific region. VEA pays quarterly dividends. 

Janus Henderson AAA CLO ETF

The Janus Henderson AAA CLO ETF JAAA invests in high-quality collateralized loan obligations and provides investors with exposure to asset classes with low risk and volatility. It yields over 6%. 

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