75-Year-Olds: How Much Capital is Required for $3,900 Monthly Dividends

A 75-year-old seeking to replace nearly $47,000 in annual retirement income without touching principal must consider their options carefully. Coca-Cola (KO), Johnson & Johnson (JNJ), and PepsiCo (PEP) are among the 'Dividend Kings' that have raised payouts for over six decades.

Coca-Cola's quarterly dividend of $0.53 per share translates to an annualized payout of $2.12, or a 2.3% yield at its current price. Johnson & Johnson's quarterly payout was recently increased to $1.34, with an annualized payout of $5.36 and a 2.0% yield.

The highest-yielding stock among the three is PepsiCo, with an annualized dividend of $5.92 and a yield of around 4.0%. To achieve the desired monthly income of $3,900, an individual would need to invest approximately $1,410,000 in a portfolio of these stocks, assuming a blended 3.3% yield.

Rising payouts from dividend growth can significantly impact long-term returns, with KO's quarterly dividend increasing from $0.28 in 2013 to $0.53 in 2026, and JNJ's increasing from $0.66 to $1.34 over the same period.