Let me start with a confession: putting half of my net worth into five companies might sound reckless to some, but for me, it’s the clearest expression of financial faith I can muster. I’m not talking about speculative bets or meme stocks riding the flavor-of-the-week hype train. I’m talking about battle-tested dividend-payers that combine steady income, long-term growth, and resilience. These aren’t just line items in my brokerage account—they're the pillars of my financial future.
If you’re the kind of investor who checks their portfolio like it's a slot machine, this post probably isn’t for you. But if you believe in dividends, compound interest, and letting time do the heavy lifting, buckle up. Here are the five dividend investments I trust with 50% of my net worth—and why I sleep well at night because of them.
1. Johnson & Johnson (JNJ)
Dividend Yield: ~3.2%
Holding Size: ~12% of Net Worth
Let’s kick this off with the stock that’s more boring than a beige wall—and I absolutely love it for that.
Johnson & Johnson is what I call a “sleep-well-at-night stock.” It’s a Dividend King, meaning it’s increased its dividend for 60+ consecutive years. That’s through wars, recessions, pandemics, and presidential meltdowns. If you can name a macro disaster, JNJ’s dividend probably shrugged and said, “I’m good.”
Sure, they’ve spun off their consumer health segment (Kenvue), and yes, there’s been legal drama around talc lawsuits—but the core pharmaceutical and med-tech segments continue to print cash. The company has deep moats in immunology, oncology, and surgical robotics. And let’s not forget their conservative balance sheet with an AAA credit rating—higher than the U.S. government.
This is my “anchor” position. It grows, it pays me, and it makes zero headlines. Exactly how I like it.
2. PepsiCo (PEP)
Dividend Yield: ~3.0%
Holding Size: ~10% of Net Worth
While some people are obsessed with tech giants, I like to keep my money where the snacks are. PepsiCo isn’t just a soda company—it’s a global food and beverage powerhouse with brands like Lay’s, Doritos, Quaker, and Gatorade under its belt.
What makes PEP so attractive is diversified cash flow. When soda sales slow, snacks pick up the slack. The company has increased its dividend for over 50 years, putting it in elite Dividend Aristocrat territory. It’s not growing explosively—but it doesn’t need to. Mid-single-digit revenue growth, margin stability, and relentless brand dominance give it staying power.
While Coca-Cola is often hailed as the ultimate consumer defensive, I’d argue PepsiCo’s product mix and execution make it more future-proof. Plus, PEP’s dividend is not just generous—it’s ridiculously consistent, with 7-10% annual hikes like clockwork.
In short: if you’ve ever emotionally eaten a bag of Ruffles during a bad market day, you already understand the moat here.
3. Realty Income (O)
Dividend Yield: ~5.9%
Holding Size: ~10% of Net Worth
Ah, The Monthly Dividend Company—how could I not include Realty Income?
This REIT (Real Estate Investment Trust) specializes in triple-net lease retail real estate. Translation? It owns thousands of physical locations rented to tenants like Walgreens, 7-Eleven, and Dollar General, where the tenant covers taxes, maintenance, and insurance. O just sits back and collects the rent—and so do I.
Realty Income has paid a monthly dividend for over 600 consecutive months, with 120+ dividend increases under its belt. Its portfolio is geographically diversified and boasts 95%+ occupancy even in turbulent times.
I trust O because it understands its lane: boring, predictable, income-focused real estate. The company isn’t out here trying to be the next WeWork or experiment with metaverse malls. It buys real estate that prints cash, signs long-term leases, and raises my dividend like a courteous landlord who actually knows your name.
In a world of yield traps, O is the rare REIT I trust with a significant chunk of my net worth.
4. Brookfield Infrastructure Partners (BIP)
Dividend Yield: ~5.5%
Holding Size: ~9% of Net Worth
When you think “dividends,” your mind probably jumps to utilities and telecoms—but I want to take you a little deeper into the income trenches with Brookfield Infrastructure Partners.
This beast owns everything from toll roads in South America, to natural gas pipelines in North America, to telecom towers in India, and railways in Australia. It’s global. It’s essential. And it throws off juicy distributions like a broken vending machine set to “free.”
Brookfield’s secret weapon? It’s run by Brookfield Asset Management, one of the sharpest infrastructure allocators on the planet. They buy distressed or undervalued assets, optimize them, and squeeze out growing cash flow.
This is the only limited partnership (LP) in my top five, and yes, that means it comes with a K-1 come tax season—but I’ll fill out extra forms for that kind of yield and diversification.
In an era of declining infrastructure investment and growing global demand, BIP’s portfolio sits in the sweet spot between necessity and scarcity.
5. Texas Instruments (TXN)
Dividend Yield: ~3.4%
Holding Size: ~9% of Net Worth
Last but not least, I like a little semiconductors with my income—and Texas Instruments is the rare tech stock that behaves like a dividend aristocrat in a Silicon Valley hoodie.
TI makes analog and embedded chips—the stuff that quietly powers cars, factory equipment, HVAC systems, and everything that doesn’t need flashy AI hype. While NVIDIA and AMD chase high-performance glory, TXN grinds out reliable profits from boring-but-essential use cases.
What sets TXN apart is capital allocation discipline. They buy back stock, maintain rock-solid margins, and hike dividends like clockwork—growing it by over 600% since 2004. In fact, they return 100% of free cash flow to shareholders through dividends and repurchases.
It’s not just a tech play—it’s a cash flow machine with an engineer’s temperament. And in an industry often addicted to reinvention, Texas Instruments has found its niche and just keeps drilling into it. I love that.
Why Only Five?
Let’s be real: diversification is important—but overdiversification is just disguised indecision. I don’t want 30 mediocre companies. I want a handful of excellent businesses I deeply understand. That’s the core of concentrated dividend investing.
Here’s how my portfolio math breaks down:
The rest of my portfolio? It’s a mix of broader dividend ETFs, cash-equivalents like short-term Treasuries, and a few speculative moonshots I allow myself for fun—but these five are my foundation.
Lessons I’ve Learned From Holding These Giants
1. Dividends Buy Time
Even in volatile markets, dividend payments soften the blow. They give you cash flow while you wait for prices to recover—and that psychological buffer is worth its weight in gold.
2. Focus on Free Cash Flow
All five companies have one thing in common: they generate excess cash and return it to shareholders. If you can’t pay me from cash, I don’t want you.
3. Buy Businesses, Not Tickers
I know these companies. I use their products. I read their earnings reports. I trust their leadership. That’s what lets me ignore short-term headlines and focus on long-term income.
4. Stick With Boring
If CNBC never mentions your stock, that’s usually a good sign. Flashy doesn’t pay dividends. Fundamentals do.
Final Thought: Why I Trust Them
These five companies represent the closest thing to financial truth I’ve found in a noisy, speculative world. They generate real income. They grow it steadily. They aren’t trying to reinvent the wheel—they’re just making sure it keeps turning and pays you while it does.
Putting 50% of my net worth into five stocks isn’t about YOLO risk—it’s about deliberate conviction. I trust them to do their job. And while nothing is guaranteed in investing, betting on companies that actually pay you to own them is about as close to sanity as the market allows.
I’m not looking for 10x returns overnight. I’m looking for income, predictability, and wealth that builds itself slowly—like dividends always do when you give them time.
And for me, that trust is worth every cent.
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