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How to Retire Early With Dividend-Growth Stocks

We work because we haven’t yet reached the financial goals we require to retire. The goal may be a huge sum of money–perhaps $3 million, or it may be a set income needed per month. What’s worse is that some people don’t know how much they need to retire.

How much do you need to retire?

It’s simpler to figure out how much income you need per month, instead of how much money you need for retirement.

Knowing how much you spend now is a good start. If you spend $3,000 a month, then your initial financial goal could be to earn $3,000 per month in passive income.

If you want a margin of safety, you can aim for a monthly income that’s 5%, 10%, or 20% higher to account for unforeseen expenses.

How to create a passive income

You can create a passive income with any assets that generate consistent cash flows. For example, the assets can be farms, buildings, or dividend stocks.

Speaking of dividend stocks, Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) is a strong candidate for consistent income. In fact, you can expect it to grow its dividend year after year.

Brookfield Asset Management is the general partner and manager of Brookfield Property. The management has more than 100 years of experience in owning, operating, and developing real assets, and it owns a big portion (about 62%) of Brookfield Property. So, the management’s interests are aligned with that of shareholders.

Since Brookfield Property was spun off as a limited partnership in 2013, the company has increased its dividend every year. And management foresees growing its dividend by 5-8% per year going forward.

The management is confident about the guidance because Brookfield Property has a high-quality, global real estate portfolio.

Brookfield Property has 83% of its portfolio in core office and retail assets, which is complemented by 17% of opportunistic investments with a potential for higher returns.


Brookfield Property is the kind of business you’d want to own to help fund your retirement. The company has an investment-grade S&P credit rating of BBB.

The company offers a safe, high yield of 4.8% at $30.50 per share, and you can expect it to grow your income by 5-8% per year. An investment in Brookfield Property will more than keep pace with inflation and maintain your purchasing power.

By investing in a diversified portfolio of strong dividend-growth companies, you can steadily but surely work towards your monthly income goal. Once you reach that goal, you can choose to retire.

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Fool contributor Kay Ng owns shares of Brookfield Property Partners. The Motley Fool owns shares of BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.

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