Early Retirement Portfolio: 10 Stocks to Live Off Dividends

6. Eastman Chemical Company (NYSE:EMN)

Dividend Yield as of January 6: 3.73%

Eastman Chemical Company (NYSE:EMN) is a Tennessee-based company that is mainly involved in the chemical industry. The company has emerged as a leading player in the chemical industry, particularly following recent changes in export controls that have created favorable conditions for compliant suppliers. The new restrictions on exports to Russia and Belarus have restricted competitors’ ability to fulfill demand, particularly in the agriculture and medical sectors, allowing Eastman to capture more market share in these key areas. The company’s strong focus on legitimate civilian applications and its dedication to regulatory compliance provide the company with a distinct competitive advantage as demand grows for compliant chemical precursors.

Eastman Chemical Company (NYSE:EMN) generated over $2.4 billion in revenues in the third quarter of 2024, up 8.7% from the same period last year. The underlying trends in end markets have remained largely consistent with those observed in the second quarter, aligning with the company’s expectations. In several of its specialty product lines, the company continues to outperform the broader end-market growth, particularly in the automotive sector. During the quarter, its adjusted EBIT margin rose by 360 basis points compared to the previous year, driven by growth in volume and product mix, operating leverage, and enhanced commercial strategies.

Eastman Chemical Company (NYSE:EMN) remained committed to its shareholder obligation, returning $195 million to investors through dividends and share repurchases during the most recent quarter. Its operating cash flow came in at $396 million. On December 5, the company declared a 3% increase in its quarterly dividend to $0.83 per share. This marked the company’s 15th consecutive year of dividend growth, which makes EMN one of the best dividend stocks for an early retirement portfolio. The stock offers a dividend yield of 3.73%, as of January 6.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 26 funds held stakes in Eastman Chemical Company (NYSE:EMN), compared with 28 in the previous quarter. The total value of these stakes is over $273.5 million. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q3.