How Much Passive Income $800,000 in Edison, International Paper, Altria and AT&T Pays Each Year
One of these four high-yield dividend payers earns less than it hands out, while another faces a wildfire liability nobody can price. Before you build a retirement paycheck around them, find out which stocks carry the real risk.
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Retirement income comes down to one question: does the cash coming in each month cover the bills going out? Social Security and a pension often leave a gap. Selling shares during a downturn to fill that gap locks in losses at the worst possible moment.
Dividend income fills the gap without forcing a sale. An $800,000 portfolio split equally, with $200,000 in each of four high-yield names, would pay the following. The total comes to more than $44,000 a year, or about $3,715.71 a month. Each yield is the forward annualized dividend divided by the delayed share price on the morning of November 6, 2026.
AT&T Locks Its Payout Through 2028
- Stock #4: AT&T (NYSE:T | T Price Prediction)
- Yield: 5.18%
- Shares for $200,000: 9,337.1
- Annual Passive Income: ~$10,364.15
AT&T runs a wireless business, consumer and business wireline (including AT&T Fiber and Internet Air), and a Latin America segment. The yield is high because AT&T is a capital-hungry incumbent. It cut its dividend after the WarnerMedia and DIRECTV spinoffs and has held it at $1.11 a year since, while spending heavily on fiber and buybacks. The shares sit at $21.42, down 9.57% this year.
For a telecom, free cash flow is the best test of dividend safety. Management targets $18B+ in 2026 and $19B+ in 2027, and has committed to keeping the $1.11 dividend through 2028. The main risk is debt. Net debt to adjusted EBITDA rose to 3.13x after the $23 billion EchoStar spectrum purchase, and management does not expect to get back to the 2.5x range until 2029.
International Paper Pays More Than It Earns
- Stock #3: International Paper (NYSE:IP)
- Yield: 5.47%
- Shares for $200,000: 5,908.4
- Annual Passive Income: ~$10,930.58
International Paper is North America’s largest maker of containerboard and corrugated packaging. It is also splitting off its European packaging arm, DS Smith, through either a spinoff or a sale. Packaging is a cyclical business, and the shares have fallen 10.89% this year to $33.85. A $1.377B goodwill write-down on the European business drove the company to a GAAP loss.
Of the four, this dividend has the weakest coverage. Third-quarter adjusted EPS of $0.37 fell short of the $0.4625 quarterly dividend. Free cash flow was negative $267M, and the full-year outlook is only about $100 to $200 million. The payout has stayed at $0.4625 since 2022. Management said nothing about the dividend on the call and plans to lay out a new capital allocation framework after the separation.
Edison International Is Still Raising Its Dividend Despite Wildfire Risk
- Stock #2: Edison International (NYSE:EIX)
- Yield: 5.79%
- Shares for $200,000: 3,299.2
- Annual Passive Income: ~$11,580.34
Edison International runs Southern California Edison, which serves about 15 million people. As a regulated utility, it earns returns on a large approved rate base. Investors have marked the stock down because California still lacks a fixed framework for wildfire liability, which keeps yields high.
The dividend policy targets 45% to 55% of SCE core earnings, and it has delivered 22 consecutive years of increases. Management reaffirmed 2026 core EPS guidance of $5.90 to $6.20, well above the $3.51 annual dividend, and expects to issue no new equity through 2030. The big risk is the Eaton Fire. Los Angeles County fire officials found that SCE equipment caused the ignition, and the company says the range of possible losses is hard to estimate. CEO Pedro Pizarro said that a “delay into 2027 will have significant and costly consequences.”
Altria Tops the Group on Yield
- Stock #1: Altria Group (NYSE:MO)
- Yield: 5.86%
- Shares for $200,000: 2,638.2
- Annual Passive Income: ~$11,713.49
Altria runs Philip Morris USA (Marlboro), Copenhagen, and Skoal, nicotine pouches and NJOY, plus a stake in AB InBev. It is a mature tobacco business that throws off a lot of cash and returns most of it to shareholders. The stock has climbed 37.86% this year to $75.81, and it still has the highest yield of the four.
In August, Altria raised its quarterly dividend to $1.11, its 61st increase in 57 years. Management raised 2026 adjusted EPS guidance to $5.66 to $5.74, which covers the $4.44 annualized dividend, and debt to EBITDA stands at 1.9x. The long-term risk is shrinking demand. Industry cigarette volumes are falling an estimated 5% a year, and Marlboro’s retail share dropped to 39.5%.
Income Breakdown for the $800,000 Portfolio
| Name | Yield | Annual Dividend Income |
|---|---|---|
| AT&T | 5.18% | $10,364.15 |
| International Paper | 5.47% | $10,930.58 |
| Edison International | 5.79% | $11,580.34 |
| Altria | 5.86% | $11,713.49 |
| Total | 5.57% | $44,588.55 |
Together, these four positions would pay $44,588.55 a year on an $800,000 investment, a combined yield of 5.57%. Altria contributes $11,713.49, Edison adds $11,580.34, International Paper adds $10,930.58 and AT&T chips in $10,364.15.
For retirees, steady cash flow matters more than headline yield. Four companies paying on staggered quarterly schedules spread the checks across the year, the same payment-calendar idea we walked through in a free guide to turning savings into a paycheck. Two things are worth tracking: whether International Paper’s free cash flow recovers after the separation, and whether California passes wildfire reform.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
