Early Retirement Portfolio: 5 Stocks to Live Off Dividends Revisited

In this article, we discuss the best dividend stocks for an early retirement portfolio. If you want to read our detailed analysis of dividend stocks and their performance in the past, go directly to read Early Retirement Portfolio: 16 Stocks to Live Off Dividends Revisited. 

5. Bristol-Myers Squibb Company (NYSE:BMY)

Dividend Yield as of December 26: 4.66%

Bristol-Myers Squibb Company (NYSE:BMY) is an American biopharmaceutical company that focuses on researching, developing, and producing innovative medicines and treatments across various therapeutic areas. In December 2023, the company raised its dividend for the 18th consecutive year, which makes BMY one of the best dividend stocks for an early retirement portfolio. It currently pays a quarterly dividend of $0.60 per share and has a dividend yield of 4.66%, as of December 26.

As of the close of Q3 2023, 65 hedge funds owned stakes in Bristol-Myers Squibb Company (NYSE:BMY), compared with 66 in the previous quarter, according to our database. The collective value of these stakes is over $1.8 billion.

4. Pinnacle West Capital Corporation (NYSE:PNW)

Dividend Yield as of December 26: 4.93%

Pinnacle West Capital Corporation (NYSE:PNW) is an Arizona-based electric services company that offers related services to residential, commercial, industrial, and governmental customers across a significant portion of the state. On December 13, the company declared a quarterly dividend of $0.88 per share, which was in line with its previous dividend. Overall, the company has grown its dividends for 12 consecutive years. As of December 26, the stock has a dividend yield of 4.93%.

As of the close of Q3 2023, 20 hedge funds in Insider Monkey’s database owned stakes in Pinnacle West Capital Corporation (NYSE:PNW), which remained unchanged from the previous quarter. The consolidated value of these stakes is more than $257.5 million.

3. Realty Income Corporation (NYSE:O)

Dividend Yield as of December 26: 5.33%

An American real estate investment trust company, Realty Income Corporation (NYSE:O) is next on our list of the best dividend stocks for an early retirement portfolio. The stock can be a reliable option for retirees as the company pays monthly dividends to shareholders. In addition to this, the company has been raising its dividends for 104 consecutive quarters. It currently offers a monthly dividend of $0.2565 per share and has a dividend yield of 5.33%, as of December 26.

At the end of Q3 2023, 23 hedge funds in Insider Monkey’s database owned stakes in Realty Income Corporation (NYSE:O), compared with 24 in the preceding quarter. These stakes have a total value of roughly $150 million.

2. Philip Morris International Inc. (NYSE:PM)

Dividend Yield as of December 26: 5.58%

Philip Morris International Inc. (NYSE:PM) is primarily involved in the manufacturing and sale of tobacco products, including cigarettes, heated tobacco products, and other nicotine-containing products. The company maintains a 14-year streak of consistent dividend growth and offers a quarterly dividend of $1.30 per share. As of December 26, the stock has a dividend yield of 5.58%.

As of the end of the September quarter of 2023, 62 hedge funds tracked by Insider Monkey owned stakes in Philip Morris International Inc. (NYSE:PM), growing from 54 in the preceding quarter. The total value of these stakes is over $4.7 billion.

1. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of December 26: 7.10%

Verizon Communications Inc. (NYSE:VZ) tops our list of the best dividend stocks for an early retirement portfolio. The American telecommunications company has been growing its dividends for the past 17 years and offers a per-share dividend of $0.665 every quarter. The stock has a dividend yield of 7.10%, as of December 26.

As per Insider Monkey’s database of Q3 2023, 61 hedge funds owned stakes in Verizon Communications Inc. (NYSE:VZ), growing from 53 in the previous quarter. These stakes are collectively valued at nearly $1.4 billion.

You can also take a look at 15 Undervalued Defensive Stocks For 2024 and 11 Most Profitable Lithium Stocks Now