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

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Can you live entirely off your dividends? This is perhaps the most frequently asked question on Reddit’s dividend discussion boards, where hundreds of people share their fixed-income investing experiences and seek advice. About nine months ago, someone asked /dividends, a Reddit community with over 570,000 members, if it was possible to live off your dividend investments. While there were many interesting responses, one stood out to us.

A Reddit user responded that he is 59 years old and invested about $250,000 in dividend stocks after the COVID-19 crash. He said the market rebound buoyed his portfolio and he invested about $200,000 more. He claimed he earns about $70,000 a year in dividend income. Most of the stocks in his initial portfolio were in the oil and gas industry, but he later diversified into other sectors. The Reddit user 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 shared publicly 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 raised its rating on SUN shares from Neutral to Buy with a $65 price target.

Exxon Mobil

With over 40 consecutive years of dividend increases and a 3.4% yield, Exxon Mobil Corp (NYSE: XOM) is one of the largest dividend stocks in Redditor’s portfolio, with dividend income of $70,000 per year. Exxon Mobil continues to invest in fossil fuels, estimating that more than 50% of global energy demand will be met by oil and gas by 2050. However, the company is investing in carbon capture and clean energy. Exxon plans to produce 40 million tons of LNG per year 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% from a year earlier and missed Wall Street forecasts by $140 million.

Current trend:

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 the stock in 2020, and it was later merged with Energy Transfer (ET).

Altria Group

With a 7.5% yield and over 50 years of consecutive dividend growth, Altria Group Inc. (NYSE: MO) is a favorite income stock among Redditors. Despite concerns about the future of its smokable products amid a global decline in smoking, Altria continues to be a reliable dividend stock. In August, it raised its dividend by 4.1%. The company’s latest quarterly results show that its smokeless and oral tobacco products have started to offset the decline in smokable products.

Pfizer
Pfizer Inc. (NYSE:PFE) has a dividend yield of over 5% and has increased its payout for 15 consecutive 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 each quarter and has more than 110 candidates in its pipeline.

The Redditor who claims to earn around $70,000 per year in dividends said he added Pfizer fairly late in his investing journey for added diversification.

Johnson & Johnson

Johnson & Johnson (NYSE:JNJ) is one of the most valuable dividend stocks, with over six decades of consistent payout growth. Despite the headwinds from lawsuits, the breadth and diversity of its revenue streams make Johnson & Johnson an attractive income play. In July, Johnson & Johnson reported strong quarterly results, beating estimates on both revenue and EPS. The MedTech and Oncology businesses posted decent year-over-year revenue growth.

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This article “$70K-a-Year Dividend Investor Shares His Portfolio: 7 Best Stocks” originally appeared on Benzinga.com