Retired At 58, He 'Spent Between $1M-$2M On Stocks' – Investor Who Built An 8% Yield Portfolio And Lives Off Dividends Shares Top Holdings

Dividend investing has long been a favorite strategy for retirees and income-focused investors. Unlike growth-oriented assets, which depend on share price appreciation, dividend-paying stocks generate regular payouts.

But why do so many investors run to dividend stocks and ETFs? Dividends offer a way to compound wealth by reinvesting the generated income while also providing financial stability in retirement. High-quality dividend companies also have a history of increasing payouts year after year, helping investors keep up with inflation.

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Still, total returns are also important in investing, as one investor demonstrated. The investor, a Reddit user who shared his journey in the r/Dividends community, is a 61-year-old retiree who spent 37 years building his portfolio on growth before switching to a dividend strategy when approaching retirement. He ultimately crafted a portfolio yielding around 8% and named his top holdings in the thread.

“My big break was being mostly cash in early 2020 because I felt the market had gotten too expensive. That was largely luck but it worked great. March 2020 was really fun. I spent between $1 million to $2 million on stocks in about 30 days and the resulting market rise after that secured my retirement. When I started learning about dividends, I included it as one option but still looked at it from a perspective of total returns,” he shared.

Now, he lives comfortably off dividends, rarely selling stocks for income, and relying on growing dividend payouts. The investor has shared his holdings in the Reddit community, so let’s see what they are.

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Retiree Living Off Dividends Shares Top 10 Holdings in Reddit Investing Community

AbbVie

AbbVie ABBV is a global biopharmaceutical company focusing on the research and development of advanced treatments for complex diseases. Investors love ABBV because of its strong product portfolio and its steady dividend history, paying approximately 3.23% annually in dividends.

Arbor Realty Trust

A real estate investment trust with a high yield, Arbor Realty Trust ABR focuses on originating and servicing loans for multifamily and commercial real estate. The company pays investors around 14.11% in dividends annually.

Broadcom

A tech dividend grower, Broadcom AVGO is known for semiconductors and software, and despite a modest yield, it raises payouts aggressively. AVGO has a 1.24% dividend yield per year.

Hercules Capital

Hercules Capital HTGC is a business development company that offers venture debt to technology and life sciences companies. Investors love HTGC since it offers high dividend yields and exposure to emerging growth companies. The company pays investors around 9.39% in dividends.

Mastercard

Mastercard MA is a well-known global technology company operating in the payments industry. MA pays investors approximately 0.56% in dividends yearly.

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Realty Income Corporation

A real estate investment trust, Realty Income Corp. O is known as “the monthly dividend company” since it pays investors every month. O owns over 6,500 properties under long-term lease agreements and has a very diversified property portfolio, paying 5.76% per year in dividends.

Target

Operating as a general merchandise retailer selling a wide assortment of products, such as household essentials, apparel, and electronics, Target TGT generates approximately 4.23% in dividends.

Vanguard Total Stock Market ETF

Vanguard Total Stock Market ETF VTI tracks the performance of the CRSP US Total Market Index, covering virtually all investable U.S. stocks. With a dividend of around 1.35% per year, the ETF is loved by investors because it offers broad exposure to the U.S. equity market with low expense ratios.​

Schwab U.S. Dividend Equity ETF

Tracking the performance of the Dow Jones U.S. Dividend 100 Index, Schwab U.S. Dividend Equity ETF SCHD focuses on high-dividend-yielding U.S. stocks. SCHD generates around 3.81% in dividends.

Invesco S&P SmallCap 600 Revenue ETF

Paying around 1.47% in dividends per year, Invesco S&P SmallCap 600 Revenue ETF RWJ tracks the performance of the S&P SmallCap 600 Revenue-Weighted Index. Investors love RWJ because it provides exposure to small-cap U.S. companies weighted by earnings.

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