Dividend Investor Earning $70,000 a Year Shares His Portfolio: Top 7 Stocks

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Can you live entirely off dividends? This is perhaps the most common question asked on Reddit dividend discussion boards, where hundreds of people share their income investing experience and seek advice. About nine months ago, someone asked /dividends, a community on Reddit with over 570,000 members, whether it’s possible to live off your dividend investments. While there were many interesting responses, one caught our attention.

A Redditor responded that he’s 59 and invested about $250,000 in dividend stocks after the COVID-19 pandemic-led crash. He said that the market rebound buoyed his portfolio and he invested about $200,000 more. He claimed that he rakes in about $70,000 per year in dividend income. Most of the stocks in his initial portfolio were from the oil and gas industry, but he later diversified into other sectors. The Redditor was generous enough to mention the specific stocks in his portfolio. Let’s take a look at these companies.

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These stocks are based on an income report publicly shared by an investor on Reddit. This is not investment advice or a recommendation.

Sunoco LP

Sunoco LP (NYSE:SUN) is a Texas-based MLP energy company with a dividend yield of about 6.8%. Last month, the company reported strong second-quarter results that beat estimates for both earnings and revenue. In May, Sunoco completed its $7.3 billion acquisition of NuStar. In June, Citi increased its rating on SUN shares to Buy from Neutral with a $65 price target.

Exxon Mobil 

With over 40 years of consecutive dividend increases and a 3.4% dividend yield, Exxon Mobil Corp (NYSE:XOM) is one of the top dividend stocks in the Redditor portfolio, earning $70,000 a year in dividend income. Exxon Mobil continues investing in fossil fuel opportunities, believing that over 50% of the global energy demand will be fulfilled by oil and gas even by 2050. However, the company is investing in carbon capture and clean energy. Exxon expects to produce 40 million tons of LNG annually by 2030, more than double its current production.

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Crossamerica Partners LP

Crossamerica Partners LP (NYSE:CAPL) distributes motor fuels with a dividend yield of about 10%. The company reported second-quarter results in August, in which GAAP EPS beat Wall Street estimates. However, revenue fell 1.7% year over year and missed the Street’s forecasts by $140 million.

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Crestwood Equity Partners (now part of Energy Transfer)

Crestwood Equity Partners was an energy infrastructure company that was acquired by Energy Transfer for about $7.1 billion last year. The Redditor said he bought this stock in 2020, and it was later merged into Energy Transfer (ET).

Altria Group

With a 7.5% yield and more than 50 years of consecutive dividend growth, Altria Group Inc. (NYSE:MO) is one of Redditors’ top favorite income plays. Despite concerns about the future of its smokeable products amid a decline in smoking worldwide, Altria continues to be a reliable dividend stock. In August, it upped its dividend by 4.1%. The company’s latest quarterly results show its smoke-free and oral tobacco products have started to offset declines from smokeable products.

Pfizer
Pfizer Inc. (NYSE:PFE) has a dividend yield of over 5% and has increased its payouts for 15 straight years. With a strong pipeline and strengths in the pharmaceutical market, Pfizer is a reliable dividend stock for any portfolio. Pfizer spends about $2.5 billion to $3 billion on research and development every quarter and has over 110 candidates in its pipeline.

The Redditor claiming to earn about $70,000 per year in dividends said he added Pfizer quite later in his investment journey for added diversification.

Johnson & Johnson

Johnson & Johnson (NYSE:JNJ) is one of the top dividend stocks, with over six decades of consistent payout growth. Despite headwinds related to lawsuits, the sheer scale and diversity of its revenue stream make Johnson & Johnson an attractive income play. In July, Johnson & Johnson posted strong quarterly results, beating estimates on both revenue and EPS. MedTech and Oncology businesses posted decent YoY revenue growth.

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