4 High-Yield Dividend Stocks That Could Pay $32,500 a Year in Retirement

A retiree living off savings runs into a simple problem. Every share sold to pay the bills is a share that stops making. Dividend income works the other way: cash shows up on a schedule while the principal stays invested (the whole point of a dividend ladder is never having to sell a share, and our free guide shows how to build one here). For a Boomer household building a retirement paycheck, the useful question is how much cash a given sum can reliably produce.

Here is the math on one approach. Putting $500,000 to work, with $125,000 in each of four high-yield dividend payers, would return more than $32,500 in annual passive income at current prices. That works out to about $2,711 a month. The group covers real estate, telecom, consumer staples, and a regulated utility. Forward yields based on prices from October 28, 2026 were used for all figures.

Clorox

• Stock #4: Clorox (NYSE:CLX | CLX Price Prediction)
• Forward Yield: 5.79%
• Shares for $125,000: 1,446.76
• Annual Passive Income: ~$7,234

Clorox sells household staples under brands including Clorox, Brita, Burt’s Bees, Glad, Hidden Valley, and Kingsford. It added Purell when it closed the GOJO acquisition in April 2026. The yield has climbed mostly because the stock has dropped 22.47% over the past year, hit by inflation, an ERP transition, and integration costs. That fall makes the $5 forward dividend look bigger next to the share price.

Coverage is tight. The dividend equals about 85% of the midpoint of FY2027 adjusted EPS guidance of $5.70 to $6.00. The chief financial officer admitted, “The current payout is a bit elevated,” but said, “At this time, we are comfortable with our current dividend.” The biggest concern is FY2027 inflation above $200 million, which could slow the margin recovery and leave little room for error.

Edison International

• Stock #3: Edison International (NYSE:EIX)
• Forward Yield: 5.98%
• Shares for $125,000: 2,130.56
• Annual Passive Income: ~$7,478

Edison owns Southern California Edison, a regulated electric utility. Part of the elevated yield comes from wildfire risk. Management calls Eaton Fire liability “probable” but cannot yet estimate the low end, and more than 30,000 claims have been filed in court.

Earnings coverage looks comfortable. The $3.51 forward dividend equals about 58% of the midpoint of reaffirmed 2026 core EPS guidance of $5.90 to $6.20. Management also says it needs no new equity through 2030, and the quarterly payout rose to $0.8775 in 2026. Credit is the biggest worry: the utility is rated BBB-minus by S&P, which leaves “limited room left within investment grade” if California’s wildfire legislation falls short.

Verizon Communications

• Stock #2: Verizon Communications (NYSE:VZ)
• Forward Yield: 6.45%
• Shares for $125,000: 2,848.03
• Annual Passive Income: ~$8,060

Verizon runs one of the largest U.S. wireless and broadband networks. Its high yield reflects a mature business with $166.2B of debt and $16.0 to $16.5B in annual capex. That keeps back share price growth, so more of the return comes to shareholders as cash.

Verizon has the strongest coverage of the four. The $2.83 forward dividend equals about 56% of the midpoint of raised adjusted EPS guidance. Free cash flow so far this year is $18 billion, compared with $8.8 billion paid in dividends, and leverage has improved to 2.3 times. The large debt load is the biggest worry, leaving little slack if wireless competition intensifies.

VICI Properties

• Stock #1: VICI Properties (NYSE:VICI)
• Forward Yield: 7.81%
• Shares for $125,000: 5,303.35
• Annual Passive Income: ~$9,758

VICI owns casino real estate, including Caesars Palace Las Vegas and MGM Grand, and leases it on triple-net terms to 16 tenants at 100% occupancy. As a REIT, it must pay out at least 90% of taxable income. An 18.57% one-year share price fall has pushed the yield even higher.

REIT dividends are best measured against AFFO. The $1.84 forward dividend equals about 75% of the midpoint of raised 2026 AFFO guidance of $2.45 to $2.47 per share. VICI also raised its quarterly payout to $0.46 in September. Tenant concentration is the biggest worry: Caesars accounts for about 38% of rent and MGM about 32%.

Four Stocks, One Income Stream

Combined, these four holdings produce $32,530 of annual income on a $500,000 investment, a blended yield of 6.51%. VICI contributes $9,758, Verizon adds $8,060, Edison International brings $7,478, and Clorox rounds out the group with $7,234.

Real estate, telecom, consumer staples, and a regulated utility each come under pressure from different forces, so trouble in one sector hits only part of the income. Their payment dates are also spread out. Edison pays on October 31, Verizon on November 2, and Clorox on November 13, keeping cash coming in throughout the quarter like a paycheck.

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