Early Retiree Making $170,00 a Year in Dividends Shares Top 7 Stock Picks, Says 'I've Zero Regrets'

Dividend stocks are gaining traction as investors look to diversify their portfolios amid tariff volatility and geopolitical uncertainties. Given their strong contribution to market returns, dividend stocks are an appealing investment option. Data shows that from December 1994 through the end of last year, reinvested dividends accounted for about 46% of the S&P 500 total return.

But which dividend stocks can help you generate significant income over the long term? Let’s see a case study for ideas.

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About a month ago, someone asked investors on r/Dividends — a Reddit discussion board with 680,000 followers — whether anyone was able to live comfortably off dividends and what kind of capital investments were needed to make over $50,000 in dividends. 

The question received more than 150 comments, with many investors sharing interesting income reports and advice. However, one comment caught our attention.

An investor said he was making $170,000 in dividends and interest. He advised investors not to focus too much on yield and avoid spending from their dividend income.

"It's just math. And the time/patience needed to accumulate, which in my case was about 35 years. Just a tip: paying for random expenses with small amounts of dividend while you are accumulating is a great way to choke your future wealth," he said.

The investor, 58, said his total portfolio worth was $4.8 million and he retired in 2021.

"Retirement isn’t paradise, but I have zero regrets and I’m up $1.2MM since retiring, despite spending plenty during the past 3.5 years," he said in a separate comment.

Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

Let's take a look at some of the key holdings in the investor's portfolio.

SPDR Portfolio High Yield Bond ETF 

The SPDR Portfolio High Yield Bond ETF SPHY provides inventors exposure to USD-denominated high-yield debt. It tracks the ICE BofA US High Yield Index. It generates monthly income from the interest income it collects on its high-yield bond holdings.

Janus Henderson B-BBB CLO ETF

Janus Henderson B-BBB CLO ETF JBBB gives investors exposure to securities with low default risk, low correlations to traditional fixed-income asset classes and yield potential. It focuses on collateralized loan obligations and yields over 7%. 

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%. 

See Also: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.

JPMorgan Equity Premium Income ETF 

JPMorgan Equity Premium Income ETF JEPI makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. 

JPMorgan Nasdaq Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF JEPQ is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. JEPQ has a dividend yield of about 9%. 

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.

The Virtus InfraCap US Preferred Stock ETF 

The Virtus InfraCap US Preferred Stock ETF PFFA invests in preferred stocks of US companies. The fund has a dividend yield of more than 9%. 

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