62-Year-Old Earning Up To $120,000 in Dividends Shares 8 Stock Picks – 'I Lived Below My Means, There Isn't An Easy Way'

Dividend stocks are gaining popularity among young investors as they offer downside protection during tough times and ensure a reliable income over the long term. In 2022, when financial markets were battered amid the inflation crisis and rising interest rates, dividend-paying stocks fell by just 11.1%, while non-dividend stocks tanked by about 39%.

Last year, someone asked r/investing – a community on Reddit with 2.9 million subscribers – whether anyone was making significant money from dividend stocks and shared their concerns and fears about dividend investing. The post received a strong response, with many sharing their success stories and income reports. One comment got our attention.

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An investor said he was pulling in $110,000 to $120,000 yearly in dividends for the past few years. He, 62, said he was shifting from growth stocks to dividend investments as he approached retirement.

"I'm able to do it because I've invested in growth stocks for 30 years. Unfortunately there isn't an easy way. I lived below my means, put all my spare cash in and took very little out. If you look at an investment calculator where you consistently add money, you'll see the graph shoot up at the end. I'm in that spot."

The investor was also asked how much he invested to reach this dividend income level. Here is what he said:

"I was getting those while in the $5M range. But I have that because I’ve been investing heavily in growth stocks for 30 years."

Based on the details he shared on Reddit, let's examine some of the key dividend stocks and funds in his portfolio.

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Schwab U.S. Dividend Equity ETF

The investor earning up to $120,000 per year in dividend income had Schwab U.S. Dividend Equity ETF (SCHD) in his portfolio. The fund tracks the Dow Jones U.S. Dividend 100 Index. It exposes some of the top dividend stocks trading in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie. Since SCHD's holdings are mostly conservative dividend payers, it's suitable for investors close to retirement looking for consistent dividend income.

Ares Capital Corporation

 Ares Capital Corporation (ARCC) is a business development company with a dividend yield of over 8%. The stock is up 13% over the past 12 months. 

Iron Mountain

Iron Mountain Inc (IRM) is a data storage REIT that offers physical storage solutions for documents and records. Its customers are major businesses with data storage and information management requirements. The company makes money via contracted storage rental fees with long-term agreements. Government offices, tech companies, hospitals and practically all kinds of businesses are on the list of Iron Mountain customers. 

IRM was among the best-performing REITs in 2024, gaining over 50%.

Kinder Morgan 

Energy infrastructure company Kinder Morgan (KMI) was among the top dividend stocks in the portfolio. The company's shares rose last month after giving upbeat 2025 guidance. The stock is up 76% over the past year.

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Main Street Capital 

Main Street Capital Corp (MAIN) is a business development company that raises capital by selling notes and shares to the public, lends money to small and mid-sized companies and earns interest income. Unlike many other BDCs, Main Street Capital also asks for equity stakes in the companies it lends to.

Altria

With a dividend yield of over 7.5%, Altria (MO) was among the top dividend picks of investors who were raking in $110,000 to $120,000 per year in dividends. In December, BofA raised its price target on the tobacco company's shares by $10 to $65. Altria has raised its dividends for 55 consecutive years. 

National Grid PLC

UK-based electricity company National Grid plc (NGG) was also a part of the portfolio of the investor who collected up to $120,000 a year in dividend income. The electricity and gas company has a dividend yield of 5.9%. In November, BofA published a list of companies with significant revenue exposure to the U.S. amid concerns stemming from President-elect Donald Trump's tariff plans. NGG was part of the list, with about 54% U.S. revenue exposure. 

WEC Energy Group

Wisconsin-based utilities company WEC Energy (WEC) has a dividend yield of about 3.6%. It recently announced a 6.9% raise in its quarterly dividend. Over the past 12 months, the stock has been up 23%. 

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.

Interest Rates Are Falling, But These Yields Aren't Going Anywhere

Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.

Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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