Ready to Retire and Want $7,500 a Year in Passive Income? Invest $25,000 in Each of These 5 Dividend Stocks
When the paycheck stops at retirement, your portfolio has to carry the weight, and one dividend cut can force painful choices between a tighter budget and selling shares at the worst moment. These five stocks were chosen to avoid exactly…
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At 67, the paycheck ends and the portfolio takes over. A dividend cut in the distribution phase forces either a smaller budget or a share sale at a poor price. A slightly lower starting yield that keeps arriving is worth more than a big yield that gets cut.
Investing $25,000 in each of these five dividend payers generates income. The combined commitment is $125,000. At current prices the group makes about $7,742 a year, meeting a $7,500 income goal. All figures are forward yields based on annualized dividends and the October 2 closing price, ordered from lowest yield to highest.
Realty Income Sends a Check Every Month
- Forward Yield: 6.02%
- Shares for $25,000: 461.77
- Annual Passive Income: ~$1,504
Realty Income (NYSE:O) owns free-standing, single-tenant commercial properties on net leases and pays monthly. As a REIT, it must give out at least 90% of taxable income. The share price fell 11.53% over the past month, driving the yield above 6%. The annualized dividend of $3.258 equals about 73% of 2026 AFFO guidance midpoint of $4.44 to $4.45 per share. The portfolio is 98.8% occupied, and Fitch rates the company A.
NNN REIT Has Raised for 37 Straight Years
- Forward Yield: 6.02%
- Shares for $25,000: 606.80
- Annual Passive Income: ~$1,505
NNN REIT (NYSE:NNN) leases retail properties on triple-net terms, so tenants pay taxes, insurance and maintenance. Its weighted average rental term is 10.1 years. The quarterly dividend rose to 62 cents, the 37th consecutive annual increase. The $2.48 annualized rate takes about 69% of the midpoint of 2026 AFFO guidance of $3.55 to $3.59. Occupancy reached 99.1%.
Verizon Funds Its Payout While Deleveraging
- Forward Yield: 6.16%
- Shares for $25,000: 544.54
- Annual Passive Income: ~$1,541
Verizon (NYSE:VZ | VZ Price Prediction) is wireless and fiber networks needing heavy capital spending and has $136.5 billion in unsecured debt. Investors demand a higher yield for that balance sheet. The $2.83 annualized dividend equals about 56% of 2026 adjusted EPS guidance midpoint of $4.99 to $5.04. Free cash flow guidance of $21.94 billion to $22.14 billion covers both the dividend and buybacks. Net unsecured leverage is 2.5x following the Frontier Communications deal.
Pfizer Is Holding the Line on Its Dividend
- Forward Yield: 6.17%
- Shares for $25,000: 896.38
- Annual Passive Income: ~$1,542
Shares of Pfizer (NYSE:PFE) are 15.28% below their level five years ago after COVID product sales unwound, keeping the yield high. The $1.72 annualized dividend equals about 59% of 2026 adjusted EPS guidance midpoint of $2.80 to $3.00. In 2025, operating cash flow was $11.705 billion and dividends were $9.771 billion. On the Aug. 4 earnings call, CEO Albert Bourla said “the dividend will be maintained and, eventually, after the LOE period, will start again growing it.” Expect the payment to stay flat while patents expire.
Altria Tops the List at 6.60%
- Forward Yield: 6.60%
- Shares for $25,000: 371.64
- Annual Passive Income: ~$1,650
Altria (NYSE:MO) sells Marlboro, Copenhagen, on! and NJOY products. Volumes shrink, but pricing power supports cash flow, which management pays mostly to shareholders. The quarterly dividend rose to $1.11 from $1.06. The $4.44 annualized rate uses about 79% of 2026 adjusted EPS guidance midpoint of $5.56 to $5.72. Marlboro’s retail share slipped to 39.7%.
5 Dividends Adding Up to $7,742 a Year
| Name | Yield | Annual Dividend Income |
|---|---|---|
| Realty Income | 6.02% | $1,504 |
| NNN REIT | 6.02% | $1,505 |
| Verizon | 6.16% | $1,541 |
| Pfizer | 6.17% | $1,542 |
| Altria | 6.60% | $1,650 |
| Total | 6.19% | $7,742 |
Combined, these five positions generate $7,742 in annual passive income from a $125,000 investment, for a blended yield of 6.19%. All five yields sit in a close band from 6.02% to 6.60%. Each payout matches within AFFO or earnings guidance with room to spare. This mix spreads income across real estate, telecom, healthcare and tobacco, with Realty Income’s monthly deposits filling gaps between quarterly payments (if that monthly schedule appeals, we rounded up seven of our favorite monthly payers in a free report here).
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Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
