58-Year-Old Retiree Living Off Dividends Shares His Portfolio: Top 12 Stocks, ETFs

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Can you live entirely off dividends? This question piques the interest of millions of young Americans thinking about early retirement and breaking free of their 9-to-5 jobs.

A few days ago, someone on r/Dividends – a Reddit discussion board related to dividend investing – asked if anyone on the forum is living off dividends.

“I’m yet to hear testimony of someone who’s actually made it to a point where they are living off their dividends. If you’re out there, could you share your story? What’s it like being free? How long have you invested?” the post said.

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The question received an outpouring of responses, with many investors sharing their personal stories and advice. One response stood out and got our attention.

An investor, who said he is 58 and retired, responded to the questioner that he’s been living off dividends for about three years.

“I started investing about 37 years ago. Retirement off dividends is nice but not really any different from living off any other source of income such as social security. I saved and invested pretty well over the years. I never focused on dividends until the last five years or so. I also don’t suggest young people do so,” he said.

The investor shared how he was able to increase his wealth via investing, leading to his retirement:

“My big break was being mostly cash in early 2020 because I felt the market had gotten too expensive. That was largely luck but it worked great. March 2020 was really fun. I spent between $1-2M on stocks in about 30 days and the resulting market rise after that secured my retirement.”

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The investor reiterated that young investors should focus on total returns instead of solely dividend income.

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