67-Year-Old Making $4,600 a Month in Dividends Shares Top 5 Stocks – 'We Made Commitment to Live Beneath Our Means, Invest in Future'

Markets were spooked after President Donald Trump called for lower interest rates and oil prices during his speech at the World Economic Forum. Greg Newman, senior wealth advisor and portfolio manager at ScotiaMcLeod, recently said it'd make sense for investors to play safe in the coming days amid tariffs and volatility arising from potential new policies under the Trump administration. Dividend stocks are gaining ground as investors look for stability to offset uncertainties in the market.

Last year, someone asked on r/Dividends – a Reddit discussion board with over 660,000 followers – whether it was possible to live entirely off dividends. The question received over 170 comments, including many interesting stories and advice from successful dividend investors. One comment, in particular, caught our eye.

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An investor said he was generating about $4,600 per month in dividends on a portfolio worth about $680,000. He also had a rental property that gave him about $3,000 a month, and he planned to start collecting social security once he reached the age of 72.

"To be totally honest, I’m not spending any of the dividends yet. I plan to wait until minimum required distributions start at age 73. Obviously, plans can change. we may end up needing more money sooner if inflation continues to be high," he said.

In a separate comment, the investor, 67, revealed that he started funneling money into his 401(k) in his early 20s. He later "stopped saving" and burned cash while trying to establish a career in the music industry. That plan went south, but the investor later turned the tables with smart decisions.

"Eventually, I had to declare bankruptcy due to all the debt that I accumulated in that failed business. The second big key to my investing results is that I married a woman who shared my goals and earned a decent living. We made a commitment to live beneath our means and invest in our future. In fact, we did our best to live on only one income and bank the rest," he said.

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Let's look at some of the top dividend stocks in this investor's portfolio.

JPMorgan Nasdaq Equity Premium Income ETF

The retired investor, who earns about $4,600 per month, said the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) was his biggest position, as he owned about 1,900 shares of the ETF. In a separate comment, the investor said he "loves" the fund and praised its "generous" yield.

JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) invests in Nasdaq companies and generates extra income by selling call options. 

Schwab U.S. Dividend Equity ETF

The investor said he had a $105,000 stake in Schwab U.S. Dividend Equity ETF (SCHD), his second-biggest position.

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 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.

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MPLX

The investor raking in $4,600 a month in dividend income was a fan of midstream energy infrastructure company MPLX LP (MPLX), which was his long-term holding. Here is what he said about the stock in a separate discussion on Reddit:

"At four years and 10 months, MPLX is one of my longest-held positions. I am up 124% in share price alone. Plus, that 8% annual dividend yield is sweet."

MPLX LP MPLX, owned by Marathon Petroleum, has a dividend yield of about 7.4%.

Energy Transfer

Energy Transfer (ET) is one of the high-yield dividend stocks in the portfolio. The shares of the Texas-based midstream energy company yield over 6%. Over the past year, the stock is up 50%. About a month ago, the investor said the following about the stock in a Reddit discussion:

"Good choice. I bought 600 shares in May, and I am up 21% plus 6.9% dividends."

Ares Capital (ARCC)

Ares Capital, a business development company, was one of the top stocks in the investor’s portfolio. According to Benzinga Pro, it has a dividend yield of about 8.2%. 

The investor revealed on Reddit that he had about 900 shares of ARCC in his portfolio and said the stock has done "very well" for him.

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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