Living off stock dividends?

[Anonymous]

Have heard people say they plan to live off their stock dividends in retirement (as a significant part of their income). I'm not sure I understand dividends correctly then.
My company stock is shown to have Dividend & Yield of 0.92 (2.70%) and because I have been there a long time I now have a high amount worth about $100K (I know I need to diversify this).
With $100K surely my dividend payments are about $2,700 a year since the yield is 2.70%? (it's hard for me to tell what I've been paid as it's automatically reinvested).
So in order for dividends to be significant income surely one would need about $1M in the stock?! This would be super risky too!

Perhaps it is only stocks that pay a much higher dividend that someone would be planning to live off dividend payments and/or they keep a large portfolio of many diversified dividend stocks?

Is my understanding correct? Thanks for any replies.

[Anonymous]

You're correct, but people don't just have one stock in their portfolio. However, if they're living off dividends, their portfolio is likely worth much more than $1M.

[Anonymous]

You will need waaay more than just $1M. Or else, expect to dip into the principal.