As many Baby Boomers begin the journey into retirement, finding sources of reliable income becomes ever more important. Nevertheless, with interest rates at unbearably low levels, many traditional sources of income such as certificates of deposits and money market funds like the PIMCO Enhanced Short Maturity ETF (NASDAQ:MINT) are paying next to nothing. What's worse is that financial obligations are usually owed monthly. We pay our mortgage, cable bill and utilities each month. Most bonds pay semi-annual interest and stocks pay quarterly. Finding good sources of monthly income is paramount.
Adding monthly dividends has other benefits besides paying your car loan on time. For those reinvesting the income, compounding occurs quicker. Money you can reinvest immediately compounds at a higher rate. This allows portfolios to take advantage of better dollar-cost scenarios. In addition, waiting six months for your money reduces the true yield on your investment. Monthly payments also help smooth out erratic income associated with semi-annual or quarterly payments. Furthermore, a monthly paycheck can help with budgeting and prevent overspending.
Source: Investopedia
Related Articles:
Income Stocks for Retirement
Posted by D4L | Monday, December 06, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.