Realty Income (O) yields ~5% with 113 consecutive quarterly dividend increases and $3.24 annualized payout, though rising interest expense of $1.13 billion in 2025 poses risk; Altria (MO) yields ~6.2% with $4.16 annualized dividend and 60 consecutive dividend raises, but faces 10% annual domestic cigarette volume declines and negative stockholders’ equity; Verizon (VZ) yields ~5.7% with $2.74 annualized dividend supported by $17.5B-$18.5B 2025 free cash flow guidance, though $144 billion total debt limits flexibility; Ares Capital (ARCC) yields ~10.6% with $1.92 annualized dividend but posted $155 million in net realized losses last quarter and compressed portfolio yield from 11% to 10%.
Income portfolios yielding 3.5% with 7% annual dividend growth double in 10 years without new capital, while 10% yields with no growth lose purchasing power to inflation and often require spending down principal rather than building wealth.
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A $1 million portfolio generating $67,500 a year requires a blended yield of 6.75%. That sits at the crossover between moderate and aggressive income tiers, involving real tradeoffs most income calculators never explain.
At 3.5% yield, $67,500 annually requires approximately $1,929,000 in invested capital. Dividend growth portfolios in this range tend to raise payouts annually, compounding income over time. Principal also appreciates alongside the income.
The 10-year Treasury currently yields 4.29%, which means a 3.5% dividend yield from equities actually pays less than a risk-free government bond today. The argument for this tier rests on dividend growth, not current income alone.
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At 6.75% yield, $67,500 requires exactly $1,000,000. This is achievable with REITs, high-yield telecoms, and tobacco dividend stocks.
Realty Income (NYSE:O) pays a monthly dividend with 113 consecutive quarterly increases and an annualized dividend of approximately $3.24 per share, yielding approximately 5% at current prices near $63. The stock is up nearly 24% over the past year. Rising interest expense of $1.13 billion in 2025 is a risk worth monitoring.
Altria Group (NYSE:MO) pays an annualized dividend of about $4.16 per share with a current yield near 6.2%. It has raised its dividend 60 times in 56 years and targets mid-single digit annual growth through 2028. The stock has gained about 28% over the past year. Domestic cigarette volumes decline roughly 10% annually, and the company carries negative stockholders’ equity.
Verizon Communications (NYSE:VZ) yields approximately 5.7% at current prices near $48, with an annualized dividend of about $2.74 per share. Verizon’s 2025 free cash flow guidance of $17.5 billion to $18.5 billion supports the payout, but total debt of $144 billion limits financial flexibility.
