Dividend-Powered Retirement: Replacing Social Security With Far Less Capital

Replacing about $42,000 a year of retirement income with investment income hinges on yield. At 3.5% you’d need about $1.2 million, at 5% roughly $840,000, and at a higher 10% yield around $420,000. A portfolio of dividend growers like Johnson & Johnson, Procter & Gamble, Coca‑Cola, and Verizon offers income that can grow faster than inflation, while higher‑yield picks such as Realty Income, Verizon, and Altria can lower required capital but may sacrifice growth and tax treatment. The piece highlights three paths—conservative (~3%), moderate (~5%), and aggressive (8–12%)—and stresses that income growth (dividend raises) over time can matter more than starting yield. It also advises tailoring expenses, considering taxes on dividends, and comparing long‑term total returns when choosing a strategy.