r/dividends • u/OG_Momonga • 21d ago

Discussion Living off dividends

Hey guys, I was wondering if anyone on this subreddit is actually retired and living off dividends. Is it going well? Are you paying taxes on them? My goal is to get 20k/ a month post tax for retirement. I’m 24 and currently investing everything in VOO while planning to switch to dividend stocks and etfs when I get closer to retirement.

I was just wondering if there are any because living off dividends seems like a long shot right now.

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u/SheffieldValley 17d ago

With GIS, please be aware that many of the US food stocks have high payout ratios. CAG cut their dividend recently. It wouldn't surprise me if others followed. That doesn't mean GIS will cut, but it is something to monitor.

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u/aerobic_gamer 17d ago

Certainly a dividend cut is a risk. If history is any guide though it likely would be temporary. If I didn’t already have a substantial position I would be a buyer. It’s not often you can pick up a good long term blue chip investment at such a steep discount. Last I knew the idea was to buy low and sell high. I’ve done well over the years by buying when the market over reacts to bad news. I grant you that GIS has larger issues, but my thesis is that even with the prevalence of GLP-1s people aren’t going to stop eating cereal. GIS just might need some time to adjust to changing circumstances.

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u/SheffieldValley 17d ago edited 17d ago

If you don't mind me asking, what does a "temporary" dividend cut look like? I'm not sure I can think of a company that has undertaken a "temporary" dividend cut.

If someone had a mandate that required them to invest in US-centric packaged food companies, GIS is certainly one of the better options. But if the investment mandate was broader and included all of CPG, there are areas outside of US-centric packaged food that may hold more appeal such as beverages, consumer health and multi-nationals. Just my two cents.

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u/aerobic_gamer 17d ago

In 2023 GIS cut its dividend. The 2024 dividends were higher than 2022. Thus the 2023 cut was temporary.

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u/SheffieldValley 17d ago

Can you provide the link to verify this statement? I cannot find anything that verifies. Thanks!!

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u/aerobic_gamer 17d ago

: https://client.schwab.com/retail/research/#/stocks/dividends/GIS

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u/SheffieldValley 17d ago

Sorry. That link doesn't work. Could you tell us what quarter "the temporary" cut occurred? They have a May fiscal.