These 3 Dividend Stocks Could Help Pay Retirement Bills Without Selling Shares

The hardest part of funding retirement with a portfolio is selling shares. Every share sold to pay a grocery bill or a property tax installment stops making anything after that. Dividends work the other way around. The cash shows up every quarter, and the share count stays the same, so the income keeps coming whether the market rises or falls (our free guide here shows how to build a dividend ladder that never touches principal).

Here’s what a $10,000 stake in each of these 3 dividend payers would produce in annual income. Across all three, a $30,000 investment generates more than $800 a year in passive income at current forward yields. Each profile also checks payout coverage, because a dividend is only as reliable as the earnings that pay for it. All three stocks go ex-dividend within a week of each other.

Fastenal: Rising Payouts Behind a Modest Yield

• Stock #3: Fastenal (NASDAQ:FAST | FAST Price Prediction)
• Forward Yield: 1.97%
• Shares for $10,000: 189.57
• Annual Passive Income: ~$197.16

Fastenal goes ex-dividend on October 28, and the $0.26 quarterly payment is paid November 25. The company sells fasteners and maintenance supplies through branches, Onsite locations inside customer facilities, and FMI vending and bin systems. Contract customers make up 76.5% of sales.

The yield is low mainly because the stock has climbed: shares are up 33.6% year to date. The dividend has also kept growing, moving from $0.22 in late 2025 to $0.24, then $0.26 in 2026. Third-quarter EPS of $0.35 came in ahead of estimates. Revenue rose 15.5% to $2.46 billion.

Coverage: trailing four-quarter EPS of $1.24 supports a $1.04 annual dividend, which works out to a payout ratio of about 84%. That leaves limited slack, so future increases depend on profits continuing to grow. Last quarter they did, with net income up 19.7%.

Kaiser Aluminum: Widest Coverage After an Earnings Miss

• Stock #2: Kaiser Aluminum (NASDAQ:KALU)
• Forward Yield: 2.15%
• Shares for $10,000: 69.93
• Annual Passive Income: ~$215.40

Kaiser Aluminum goes ex-dividend on October 23 and pays $0.77 per share on November 13. The company makes semi-fabricated specialty aluminum products for aerospace, packaging, general engineering, and automotive extrusion customers.

Kaiser has held its dividend at $0.77 since 2022, while the stock gained 83.48% over the past year. That combination pulled the yield down. Shares fell 7.12% in premarket trading to $142.99 after third-quarter EPS of $1.86 came in below the $2.08 estimate. In the same release, Kaiser declared its regular dividend, kept its full-year 2026 outlook, reported lower net debt leverage, and noted a Moody’s credit upgrade (Q3 2026 earnings release).

Coverage: trailing EPS of $12.66 covers the $3.08 annual dividend with a payout ratio near 24%, the lowest of the three. The aluminum cycle poses the biggest risk here. Kaiser’s quarterly EPS was just $0.33 at the end of 2024.

Paychex: Biggest Income Engine of the Three

• Stock #1: Paychex (NASDAQ:PAYX)
• Forward Yield: 4.23%
• Shares for $10,000: 88.89
• Annual Passive Income: ~$423.11

Paychex goes ex-dividend on October 26, and the $1.19 quarterly check pays on November 25. The company sells payroll, HR, benefits, and PEO services to small and midsize businesses, and it has been using the Paycor acquisition to move toward larger clients.

The business needs little capital to run, allowing Paychex to pay out most of its profit. The yield also rose because the stock fell 7.9% over the past year, even as the quarterly dividend rose from $1.08 to $1.19. In fiscal 2026, Paychex paid $1.6B in dividends and spent $611.0M on buybacks.

Coverage: trailing adjusted EPS of $5.63 against the $4.76 annual dividend puts the payout ratio near 85%. That ratio is high, but EPS has come in above estimates for five straight quarters, and fiscal 2027 guidance calls for adjusted EPS growth of 7% to 9%.

Income Breakdown for the $30,000 Portfolio

Combined, these 3 positions produce $835.67 of passive income per year on a $30,000 investment, a blended yield of 2.79%. Paychex contributes $423.11, Kaiser Aluminum adds $215.40, and Fastenal rounds out the group with $197.16.

Two of these three companies raised their payouts during 2026. That kind of dividend growth means the income from a fixed share count rises over time without any new money going in. Reinvesting those checks buys more shares, and compounding accelerates with each increase.

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