How to Retire Early With $24K in Annual Dividends and $1.7 Million in Cash

Early retirement may seem like a dream for many. But what exactly is it all about? Do you Yes, really just sit around and do nothing? Or are you more concerned with making time for the passions in your life, like travel?

No matter what you choose, there is certainly a way to retire early and make money. Even if it means working at something you enjoy every now and then instead of a day job, you can retire with enough in your account to retire when she want.

Start investing now

The easiest way to retire early is to start investing now – no, really; at the moment — but not necessarily in a high-growth stock that could potentially make millions overnight. If we could find all of these stocks, we’d all be millionaires.

That’s why it’s much better and easier to enter the market with simple, stable stocks instead. These may include financial institutions, energy stocks, and real estate stocks.

So why not consider one of all three? I like Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) and northland power (TSX: NPI).

Why these stocks?

Each of these stocks has a long history of strong growth and a bright future, as well as a bank stock. CIBC stock is a great deal after its stock split. It now trades at 9.29 times earnings, with a dividend yield of 5.41%. Shares have grown 613% over the past two decades, for a compound annual growth rate (CAGR) of 10.31%. The dividend is up a CAGR of 7.24% during that time.

Brookfield is supported by Brookfield Wealth Management, a firm that has been around for well over a century and invests in multiple areas of real estate. One area is infrastructure, which includes all types of necessary real estate such as power and water. It offers a 3.34% dividend yield, with shares up 1,476% over the past 13 years for a CAGR of 23%. Its dividend is up a CAGR of 9.44% during that time.

Finally, Northland Power is expanding its clean energy footprint and offering monthly revenue while you wait for more growth. It’s signing more deals across Europe, and that should only get stronger with the clean energy transition. It offers a 2.69% dividend yield, with its shares growing 1,420% over the past two decades at a CAGR of 14.56%. Its dividend has grown at a CAGR of 1.06% over the past decade.

Earn some retirement money

If you invested $10,000 in each of these stocks and simply reinvested your dividends, here’s what you would get. CIBC stock could get you $520,578 over the next 30 years, Brookfield could get you $433,180 (although that number shows far more conservative yield growth), and Northland could get you $715,650. That’s a total of $1,669,408 in your portfolio!

In addition, you can also look forward to an annual passive income through dividends – a total of $24,267 per year! That’s a solid income that could see anyone through retirement and beyond.