How I'd Invest $1,000,000 To Live Off Dividends After Years Of Compounding

Feb. 06, 2025 7:15 AM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 294 Comments
Millennial Dividends
7.36K Followers
(17min)

Summary

  • Financial security in retirement requires early and consistent investment, leveraging compounding interest to maximize returns over time.
  • Younger investors should focus on total returns, not just dividends, to accumulate wealth before shifting to dividend-paying stocks in retirement.
  • A balanced retirement portfolio should include a mix of US Treasury Bills, ETFs, REITs, BDCs, MLPs, and high-quality equities.
  • The proposed $1,000,000 portfolio aims to generate $42,132 in annual pre-tax passive income through diversified investments.

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Financial security in retirement does not happen by chance but instead requires lifelong planning and commitment."

That's an idea I want to use to kick off this article, as more often than not, I am seeing among my family members, friends, or

This article was written by

7.36K Followers
With 30 years until retirement, I’m leveraging my role as a Financial Analyst at a Fortune 500 firm to build a market-beating portfolio that targets both strong capital appreciation and aggressive dividend growth.My focus is on blue-chip companies with wide moats, competitive advantages, industry-leading market share, and profitability, priced at attractive valuations relative to forward growth across US and European markets."Beyond mere yield chasing, dividend investing for me primarily is about free cash flow."

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VOO, PEP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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