Updated
Updated · 24/7 Wall St. · Jun 24
64-Year-Old Investor Allocates $1.1 Million IRA Across 5 Dividend Stocks as Treasury Yields Near 5%
Updated
Updated · 24/7 Wall St. · Jun 24

64-Year-Old Investor Allocates $1.1 Million IRA Across 5 Dividend Stocks as Treasury Yields Near 5%

2 articles · Updated · 24/7 Wall St. · Jun 24

Summary

  • $1.1 million in a Traditional IRA was split 25% each to Coca-Cola and AbbVie, 20% to Realty Income, 18% to Southern Co, and 12% to Verizon.
  • Treasury volatility drove the reshuffle, with the 10-year moving between 4.43% and 4.56% in June and the 30-year yielding 4.94%, raising the bar for dividend stocks.
  • Coca-Cola and AbbVie ranked safest: Coca-Cola just raised its quarterly dividend to $0.53 and sees 2026 comparable EPS up 8% to 9%, while AbbVie's 2026 EPS guide implies a roughly 48% forward payout ratio.
  • Realty Income and Southern were judged safe but more rate- and leverage-sensitive, while Verizon's 6.09% yield came with the most balance-sheet risk after debt reached $172.5 billion post-Frontier.
  • The allocation framework favors tax-deferred dividend growth and could shift again if Verizon leverage drops below 2.5x or if the 10-year Treasury climbs past 5%.

Insights

Realty Income's value is heavily debated. How can investors spot if a high-yield REIT is a bargain or a value trap?
With bond yields high, why bet a $1.1M retirement on just five stocks instead of guaranteed returns?
This strategy avoids tech. Could this focus on 'old economy' dividend stocks miss out on crucial long-term growth?