'Sometimes the Stars Align' – 59-Year-Old Earning $70,000 Per Year in Dividends Shares His Top 7 Stock Picks and Advice for Young Investors

Dividend stocks are expected to gain the spotlight in 2025 as investors look for stability and steady income. A report from Lord Abbett showed that from 1979 to 2019, dividend stocks on average contributed to 76% of total return for the S&P 500 each decade when market volatility was high. 

About a year ago, someone on r/Dividends – a discussion board on Reddit focused on dividend investors – asked how realistic it is to live off dividends. The question received several comments, including personal success stories and advice. One comment stood out and got our attention, in which an investor said he collected about $70,000 in annual dividend income. 

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The investor, 59, said he saw the pandemic lows as an opportunity to pile into the market and later benefited from this strategy.

"I took advantage of the pandemic panic in the market and when things tanked, I plowed $250k into dividend stocks. With the rebound in the market and the dividend drip, I now pull in $70k in dividends a year and still growing," he said.

He said the total value of his latest portfolio was $800,000, reflecting his investments, capital gains and dividend reinvestments.

‘Sometimes The Stars Align'

Asked how he managed to have $250,000 for the initial investment, the investor said:

"Perfect storm situation. A bonus from the previous year paid out in February, right before the crash, so that and some savings allowed for the result. Sometimes the stars align."

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Best Advice for Young Investors: ‘Stay Consistent'

The investor also gave some advice for young investors.

"Best advice for the 20-40 yr. olds is stay consistent. Look for down markets to invest more and diversify," he said.

He also named some of the top stocks he invested in during his investment journey, which began during the pandemic. 

Sunoco LP 

Sunoco LP (SUN) is a publicly traded master limited partnership (MLP) that distributes motor fuels. According to Benzinga Pro, the stock has a dividend yield of 6.7%. It was part of the portfolio of an investor who earned $70,000 per year in dividends. The stock is down about 10% over the past year.

ExxonMobil

ExxonMobil (XOM) is one of the most popular energy dividend stocks. The company has raised its payouts for more than 40 consecutive years. Last month, it was reported that the company is planning to build low-carbon plants to fuel data centers.

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Crestwood Equity Partners 

Crestwood Equity Partners LP CEQP used to be in the portfolio of the investor who collected $70,000 a year in dividends. The company was acquired by Energy Transfer LP ET for about $7.1 billion in August 2023. Energy Transfer has a dividend yield of about 6.5%, according to Benzinga Pro.

Altria

Altria (MO) was another high-yield stock in the portfolio. The company has raised its dividends without a break for 55 years. In December, BofA upgraded the stock to Buy from Neutral and raised its price target to $65.

Pfizer

The investor who earned $70,000 per year in dividends said Pfizer (PFE) was among the stocks he added to his portfolio over the past 12 months. In December, the company increased its dividend by 2.4%. Pfizer shares are down 8% over the past year.

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Johnson & Johnson

With a more than 3.4% yield and over 60 consecutive years of dividend hikes, Johnson & Johnson (JNJ) is a notable dividend stock popular among Redditors. Last month, BofA started covering Johnson & Johnson with a Neutral rating and a $166 price target. 

Crossamerica Partners

Another distributor of motor fuels in the portfolio, Crossamerica Partners (CAPL) has a dividend yield of about 9.5%, according to Benzinga Pro. Replying to a comment, the investor said he still held Crossamerica shares. 

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. 

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