4 Dividend Stocks That Could Produce $32,500 a Year in Retirement

A retiree who depends on savings faces a straightforward challenge: every share sold to cover expenses is one less share generating future cash. Dividend investing takes the opposite approach, sending income to the investor on a regular schedule while leaving the principal in place. For households planning retirement income, the key question is how much cash a portfolio can reliably generate.

One possible answer is to put $500,000 to work across four high-yield dividend stocks, with $125,000 allocated to each position. At current prices, that mix would produce more than $32,500 in annual passive income, or roughly $2,711 per month. The four companies span real estate, telecom, consumer staples, and a regulated utility. All yield figures are based on forward prices from late October.

Clorox

• Forward Yield: 5.79%

• Shares for $125,000: 1,446.76

• Annual Passive Income: ~$7,234

Clorox markets household products under brands such as Clorox, Brita, Burt's Bees, Glad, Hidden Valley, and Kingsford. The company also added Purell after closing the GOJO acquisition. Its dividend yield has risen mainly because the stock has fallen 22.47% over the past year amid inflation, an ERP transition, and integration expenses. That decline makes the $5 forward dividend look larger relative to the share price.

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Dividend coverage is relatively tight. The payout amounts to about 85% of the midpoint of FY2027 adjusted EPS guidance of $5.70 to $6.00. The chief financial officer has said the current payout is somewhat elevated, but that the company remains comfortable with the dividend for now. The main risk is more than $200 million in expected FY2027 inflation, which could slow margin recovery and leave little room for mistakes.

Edison International

• Forward Yield: 5.98%

• Shares for $125,000: 2,130.56

• Annual Passive Income: ~$7,478

Edison owns Southern California Edison, a regulated electric utility. The stock’s elevated yield is partly tied to wildfire exposure. Management says liability from the Eaton Fire is probable, though the low end of the potential cost is still unknown, and more than 30,000 claims have already been filed in court.

The dividend looks reasonably covered. The $3.51 forward payout equals about 58% of the midpoint of reaffirmed 2026 core EPS guidance of $5.90 to $6.20. Management also says it will not need new equity through 2030, and the quarterly dividend was increased to $0.8775. Credit remains the biggest concern, since S&P rates the utility BBB-minus, leaving limited room within investment grade if California’s wildfire legislation falls short.

Verizon Communications

• Forward Yield: 6.45%

• Shares for $125,000: 2,848.03

• Annual Passive Income: ~$8,060

Verizon operates one of the largest wireless and broadband networks in the United States. Its high yield reflects a mature business burdened by $166.2 billion in debt and annual capital spending of $16.0 billion to $16.5 billion. That limits share-price appreciation, so a larger share of total return comes back to investors as cash.

Among the four names, Verizon has the strongest dividend coverage. The $2.83 forward dividend equals about 56% of the midpoint of raised adjusted EPS guidance. Free cash flow so far this year has reached $18 billion, compared with $8.8 billion paid out in dividends, and leverage has improved to 2.3 times. The large debt load remains the main risk, especially if wireless competition becomes tougher.

VICI Properties

• Forward Yield: 7.81%

• Shares for $125,000: 5,303.35

• Annual Passive Income: ~$9,758

VICI owns casino real estate, including Caesars Palace Las Vegas and MGM Grand, and leases those properties on triple-net terms to 16 tenants at 100% occupancy. As a REIT, it must distribute at least 90% of taxable income. A 18.57% drop in the share price over the past year has pushed the yield even higher.

For REITs, dividend coverage is best judged against AFFO. The $1.84 forward dividend equals about 75% of the midpoint of raised 2026 AFFO guidance of $2.45 to $2.47 per share. VICI also lifted its quarterly payout to $0.46 in September. The biggest concern is tenant concentration: Caesars represents about 38% of rent, while MGM accounts for about 32%.

Four Stocks, One Income Stream

Together, the four holdings would generate $32,530 in yearly income from a $500,000 investment, for a blended yield of 6.51%. VICI contributes $9,758, Verizon adds $8,060, Edison International provides $7,478, and Clorox rounds out the group with $7,234.

Because the portfolio spans real estate, telecom, consumer staples, and a regulated utility, weakness in one area would affect only part of the income stream. The payment dates are also staggered, helping cash flow arrive throughout the quarter like a paycheck.

Learn 7 Ways To Generate Income With A $1,000,000+ Portfolio

If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.

Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)