$200,000 Split Across HD, O and VZ Generates $9,729 Annual Income at 4.86% Yield
Updated
Updated · Yahoo Finance · Nov 4
$200,000 Split Across HD, O and VZ Generates $9,729 Annual Income at 4.86% Yield
2 articles · Updated · Yahoo Finance · Nov 4
Summary
$200,000 divided equally among Home Depot, Realty Income and Verizon would produce about $9,729 a year in passive income, based on current forward yields.
The mix spreads income across retail, net-lease real estate and telecom, aiming to give retirees steadier cash flow without forcing share sales in weak markets.
Realty Income underpins the portfolio's yield with 676 consecutive monthly dividends, a Fitch A stable rating and 98.8% occupancy.
Verizon's $2.83 annual dividend has risen for 19 straight years and was backed by $18 billion in free cash flow over the first nine months.
Home Depot yields less at 2.73%, but its payout is supported by earnings guidance of flat to 4% growth and a roughly 61% to 63% payout ratio.