For many investors, the main appeal of an annuity, a contract with an insurance company, is that it provides a fixed stream of income for a set period of time. Far more attractive, however, are dividend aristocrat stocks such as HCP (HCP), AT&T (T), and Consolidated Edison (ED) that have increased the dividend payment to shareholders annually for at least the past 25 years. An annuity is similar to a bond in this regard in that anything either can do, a dividend aristocrat stock can do much, much better for an investor.
The buyer of an annuity has to hope that the insurance company stays in business long enough to make the investment worth the money. That has not happened more than sixty times since 1991. In just owning the stock, in comparison, a dividend aristocrat shareholder is given a raise every year in the dividend income received from the company. The longer the retirement lasts for the shareholder, the more the income grows, based on the history of dividend aristocrat stocks. Increasing also over time is the superiority of a dividend aristocrat stock as a long term investment as opposed to an annuity.
Source: The Street
Related Articles:
- Free Cash Flow Payout vs. Dividend Payout
- 9 Dividend Stocks Trading at a Double-Digit Discount
- 6 High-Dividend, Low P/E Value Stocks
- How Much Money Will You Need Before Retiring?
- The 2013 Dividend Achievers
Look to Dividend Aristocrat Stocks, not Annuities, for Retirement Income
Posted by D4L | Thursday, January 09, 2014 | 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...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
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...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.