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Dividend investing has not been heralded frequently enough by Wall Street or the news media in recent years. It’s been considered an unexciting investment strategy and unfortunate stereotypes of dividend investors as a group of old-fashioned, conservative investors seems to have prevailed. However, dividend stock investing is coming back in vogue from Wall Street to Silicon Valley (gasp).

A recent Associated Press report noted that Apple (NASDAQ:AAPL) CEO Steve Jobs has only earned $1 per year since he returned to the CEO post in 1997. During that time, he has also not sold a single share of Apple stock even though his holdings of AAPL are now worth over $1.1 billion.

That seems to beg the question how does someone live on $1 per year? Has Steve Jobs discovered the ultimate secret of how to stretch $1 or is he just living an impoverished life that would make many of us feel better about our own?

Of course the answer is neither. Steve is able to enjoy a very lavish lifestyle, but not because of his large salary. His lifestyle is funded by his dividend income. Yes, Steve Jobs is probably one of the biggest dividend investors that you’ve never heard of.

Jobs owns approximately 138 million shares of Walt Disney (NYSE:DIS) stock that he received from the Pixar Animation Studios sale back in 2006. In fact, he is currently the largest, single holder of Disney stock. Just the income from holding that dividend stock has enabled Jobs to live a very comfortable lifestyle.

Disney has paid out dividends of $.35 per share each of the past 3 years. Owning 138 million shares results in over $48 million received each year in dividend income. Even Steve Jobs can survive on $48 million in stock dividends each year.

Dividend investors also benefit from favorable tax rates on dividend income. If Apple paid Steve Jobs a “standard” CEO package, he would undoubtedly be in the 35% tax bracket. However, his dividend income will only be taxed at 15% providing him with millions in after-tax savings.

Apple CEO Steve Jobs is one of the smartest and most highly-regarded people on the planet. If he is leveraging dividend stock investing and living off his dividend income, should dividend investing be part of your investment strategy as well? Check out eDividendStocks.com for further dividend stock ideas and analysis.

Disclosure: No Positions

Source: Steve Jobs Thrives on Dividend Income