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Social Security is a mandatory pay-as-you-go federal insurance program that is financed by a payroll tax, split between you and your employer. It provides retirement income, disability income, survivor benefits, and a modest cost-of-living adjustment each year.
However, the average retiree collects around 40% of their pre-retirement paycheck. You need around 80% for a comfortable retirement. Those who earn more replace even less.
Not only that, demographics are working against the trust fund due to an aging population. There are not enough workers to support retirees through taxes, so it may not be sustainable for the government.
As such, it is a good idea to offset it and build a side portfolio with large cash distributions. You won't have to rely entirely on the government, and this will bridge the gap between your collected amount and your pre-retirement paycheck.
MyInvestingNews has curated this slideshow of 25 high-yield dividend stocks that can do that. The underlying businesses are likely to be around for decades, potentially paying much higher dividends.
25. Philip Morris International Inc (PM)
- Current price: $162.75
- Dividend yield: 3.30%
- Dividend payout ratio: 76%
- Years of dividend increase: 17
24. PNC Financial Services Group Inc (PNC)
- Current price: $194.24
- Dividend yield: 3.33%
- Dividend payout ratio: 43%
- Years of dividend increase: 15
23. AbbVie Inc (ABBV)
- Current price: $190.85
- Dividend yield: 3.38%
- Dividend payout ratio: 61%
- Years of dividend increase: 53
22. Duke Energy Corp (DUK)
- Current price: $120.78
- Dividend yield: 3.47%
- Dividend payout ratio: 72%
- Years of dividend increase: 18
21. Exxon Mobil Corp (XOM)
- Current price: $111.94
- Dividend yield: 3.48%
- Dividend payout ratio: 52%
- Years of dividend increase: 42
20. Archer-Daniels-Midland Co (ADM)
- Current price: $54.95
- Dividend yield: 3.69%
- Dividend payout ratio: 51%
- Years of dividend increase: 49
19. Evergy Inc (EVRG)
- Current price: $70.31
- Dividend yield: 3.74%
- Dividend payout ratio: 69%
- Years of dividend increase: 22
18. PepsiCo Inc (PEP)
- Current price: $143.83
- Dividend yield: 3.79%
- Dividend payout ratio: 71%
- Years of dividend increase: 52
17. Principal Financial Group Inc (PFG)
- Current price: $78.10
- Dividend yield: 3.80%
- Dividend payout ratio: 36%
- Years of dividend increase: 17
16. Clorox Co (CLX)
- Current price: $127.23
- Dividend yield: 3.85%
- Dividend payout ratio: 73%
- Years of dividend increase: 47
15. Merck & Co Inc (MRK)
- Current price: $82.92
- Dividend yield: 3.85%
- Dividend payout ratio: 41%
- Years of dividend increase: 15
14. Comcast Corp (CMCSA)
- Current price: $32.97
- Dividend yield: 3.91%
- Dividend payout ratio: 29%
- Years of dividend increase: 17
13. JM Smucker Co (SJM)
- Current price: $110.48
- Dividend yield: 3.92%
- Dividend payout ratio: 42%
- Years of dividend increase: 23
12. Kimberly-Clark Corp (KMB)
- Current price: $126.55
- Dividend yield: 3.94%
- Dividend payout ratio: 71%
- Years of dividend increase: 52
11. Hormel Foods Corp (HRL)
- Current price: $28.60
- Dividend yield: 4.02%
- Dividend payout ratio: 77%
- Years of dividend increase: 58
10. U.S. Bancorp (USB)
- Current price: $46.40
- Dividend yield: 4.30%
- Dividend payout ratio: 47%
- Years of dividend increase: 15
9. Chevron Corp (CVX)
- Current price: $155.07
- Dividend yield: 4.30%
- Dividend payout ratio: 71%
- Years of dividend increase: 37
8. Eversource Energy (ES)
- Current price: $66.42
- Dividend yield: 4.39%
- Dividend payout ratio: 72%
- Years of dividend increase: 26
7. Eastman Chemical Co (EMN)
- Current price: $74.51
- Dividend yield: 4.42%
- Dividend payout ratio: 40%
- Years of dividend increase: 16
6. Prudential Financial Inc (PRU)
- Current price: $102.28
- Dividend yield: 5.16%
- Dividend payout ratio: 40%
- Years of dividend increase: 17
5. Franklin Resources Inc (BEN)
- Current price: $24.56
- Dividend yield: 5.18%
- Dividend payout ratio: 56%
- Years of dividend increase: 43
4. Bristol-Myers Squibb Co (BMY)
- Current price: $46.52
- Dividend yield: 5.28%
- Dividend payout ratio: 33%
- Years of dividend increase: 19
3. Edison International (EIX)
- Current price: $52.36
- Dividend yield: 6.23%
- Dividend payout ratio: 48%
- Years of dividend increase: 22
2. Verizon Communications Inc (VZ)
- Current price: $42.78
- Dividend yield: 6.30%
- Dividend payout ratio: 58%
- Years of dividend increase: 19
1. Altria Group Inc (MO)
- Current price: $60.51
- Dividend yield: 6.70%
- Dividend payout ratio: 78%
- Years of dividend increase: 55