64 Years Old With $1.1 Million in a Traditional IRA. Here’s Where I’m Allocating Capital
At 64, with $1.1 million in a Traditional IRA, tax-deferred cash flow is the point. With the 10-year Treasury at 4.50% and the 30-year at 4.94%, dividend yields have to earn their seat. The 10-year has swung between 4.43% and…
At 64, with $1.1 million in a Traditional IRA, tax-deferred cash flow is the point. With the 10-year Treasury at 4.50% and the 30-year at 4.94%, dividend yields have to earn their seat. The 10-year has swung between 4.43% and 4.56% in June alone, and that yield volatility is exactly what forced me to re-stack these holdings. Here is how I am ranking five income names by dividend safety before allocating capital, per a Traditional IRA framing that pairs tax-deferred dividend growth with shifting bond yield benchmarks.
Five Dividends, Stacked by Safety
| Ticker | Yield | EPS Payout | Net Debt/EBITDA | Streak | My Rating |
|---|---|---|---|---|---|
| KO | 2.59% | 65% | Low | 62 yrs | Very Safe |
| ABBV | 3.11% | 48% (fwd) | 2.26x | 53 yrs | Very Safe |
| O | 5.34% | 73% AFFO | 5.2x | 30+ yrs | Safe |
| SO | 3.18% | 76% | Moderate | 24 yrs | Safe |
| VZ | 6.09% | 67% | 2.6x | 19 yrs | Moderate Risk |
Why Coca-Cola and AbbVie Anchor the Top
Coca-Cola (NYSE:KO | KO Price Prediction) just lifted its quarterly to $0.53, with FY 2026 guidance pointing to comparable EPS up 8% to 9% and free cash flow around $12.2B. The Dividend King keeps earning its rating. AbbVie (NYSE:ABBV) looks stretched on a $2.05 TTM EPS figure distorted by an IPR&D charge, but management’s $14.08 to $14.28 FY 2026 EPS guide against a $6.74 dividend puts the forward payout near 48%. Skyrizi at $4.48B and Rinvoq at $2.12B are funding the dividend as Humira fades.
O and SO Are Safe, but I’m Watching the Leverage
Realty Income (NYSE:O) just notched its 114th consecutive quarterly increase, and AFFO/share rose 6.6% YoY to $1.13. CEO Sumit Roy said, “Our first quarter results underscore the strength and resiliency of our global investment and operating platforms.” Southern Company (NYSE:SO) has paid dividends for 79 consecutive years without a cut, with data center demand padding the earnings outlook.
VZ Carries the Most Baggage
Verizon (NYSE:VZ) services $172.5B in debt post-Frontier and projects FCF of $21.5B+ in 2026. The yield is real, the leverage is not trivial.
How I’m Allocating the $1.1M
My split: 25% KO, 25% ABBV, 20% O, 18% SO, 12% VZ. I would lean harder into Verizon if its leverage drifts back under 2.5x. I would trim REIT exposure if the 10-year pushes past 5%. For an IRA where every dividend reinvests untaxed, I want safety and growth in roughly equal measure. This stack delivers both.
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Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
