Four Stocks That Can Fund a $75,000 Early Retirement on a $1 Million Portfolio

"A broad dividend growth portfolio yielding 3.5% requires roughly $2,140,000 in capital to generate $75,000 annually. At a 4% yield, the number rises to $1,875,000."

"For someone with $1 million and a $75,000 income target, reaching $75,000 requires supplemental income from Social Security, a pension, or part-time work to close the gap."

"The four securities below represent two asset classes: business development companies, which lend to middle-market private companies, and midstream energy partnerships, which collect fees on oil and gas infrastructure."

To replace a $75,000 salary with investment income from a $1 million portfolio, a blended yield of 7.5% is necessary. This yield is at the upper edge of moderate and lower edge of aggressive tiers. A broad dividend growth portfolio yielding 3.5% requires over $2 million to generate the same income. Most retirees need more capital, as traditional dividend stocks yield 3% to 4%. Four specific securities can achieve the 7.5% yield needed to bridge the income gap.

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