Dividend Stocks for Retirees to Get Rich On

Bill Gross is a bond fanatic. He co-founded Pacific Investment Management Company (PIMCO) and is the chief investment officer of PIMCO Total Return, the largest mutual fund in the world. With $234 billion of assets under management and a history of totally outperforming his peers, it is safe to say that, yes, Bill Gross is a true bond junky. That's why I did a double take when I read in this weeks' Economist that Gross said bond returns "stand at the threshold of mediocrity."

If you're a retiree or close to retirement, you probably have two main concerns: saving enough money to last your lifetime and having enough current cash to pay for your daily expenses. This is where dividend stocks come into play. Similar to bonds, dividend stocks dish out a quarterly or annual payment, however, they also have unlimited potential for capital appreciation. Dividend stocks satisfy both of your main concerns by paying you cash up front to help with rent, groceries, and other expenses, but they can also increase their value over time, helping to raise your portfolio in the process.

Source: Motley Fool

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