What is the annual yield of this portfolio?

Approximately $36,000 per year on an $850,000 investment, with an average yield of 4.2%.

Is this strategy suitable for retirees?

Yes, as it provides steady income similar to Social Security, but risks should be considered.

What are the risks of this portfolio?

Dividends are not guaranteed and may be cut, and stock prices are subject to market conditions.

5 Dividend Aristocrats That Pay $36K/Year on $850K Portfolio

A 66-year-old investor can build a $36,000 annual income stream by investing $850,000 in five Dividend Aristocrats, relying on companies with decades-long records of dividend growth.

June 5, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

annual income

$36,000

portfolio value

$850,000

monthly income

$3,000

According to 24/7 Wall St., investors can generate $36,000 in annual income (equivalent to $3,000 per month) by investing $850,000 in five Dividend Aristocrats—companies with a long history of increasing dividends. This portfolio aims to provide steady income without falling into yield traps.

The Five Stocks

The portfolio consists of:

Johnson & Johnson (JNJ) – Healthcare
Procter & Gamble (PG) – Consumer Defensive
Coca-Cola (KO) – Beverages
PepsiCo (PEP) – Beverages & Snacks
Chevron (CVX) – Energy

Why Dividend Aristocrats?

These companies have a track record of paying and increasing dividends for over 25 consecutive years. They offer relative income stability even during economic volatility.

How the Investment Works?

Assuming an average dividend yield of about 4.2%, the $850,000 portfolio can generate $36,000 annually. This income is roughly equivalent to the maximum Social Security benefit for a single retiree.

What This Means for Investors?

This strategy suits retirees or near-retirees seeking steady income. However, dividends are not guaranteed and may be affected by company performance and market conditions.

Frequently Asked Questions

They are stocks of companies that have increased their dividends annually for at least 25 consecutive years, offering relative stability.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.