Motley Fool Picks 3 Dividend Stocks for $500,000 Retirement Portfolio
Updated
Updated · The Motley Fool · Jun 21
Motley Fool Picks 3 Dividend Stocks for $500,000 Retirement Portfolio
1 articles · Updated · The Motley Fool · Jun 21
Summary
$500,000 can support retirement more realistically when Social Security is included, prompting Motley Fool to highlight Ares Capital, Energy Transfer and Pfizer as long-term income holdings.
17.7% annual returns would be needed to match the $88,510 median U.S. household income from a $500,000 portfolio alone; that drops to 12.5% with one average Social Security benefit and 7.2% with two.
Ares Capital offers a 10.6% yield backed by 67 straight quarters of stable or rising dividends, while Energy Transfer yields about 7.2% and says 90% of EBITDA is fee-based.
Pfizer's forward yield tops 6.8%, supported by 16 consecutive annual dividend increases, though the drugmaker is still working through weaker COVID sales and an approaching patent cliff.
The article's broader caution is that even these high-yield names should not make up an entire retirement strategy, because a three-stock portfolio lacks diversification.