Enough with the cliché of the senior on a fixed income. There’s a fairly simple way to build an annual cost-of-living increase into at least part of your income in retirement. Just buy some blue-chip dividend growth stocks. A quick illustration: BCE Inc. has raised its dividend by an average annual rate of 9.9 per cent over the past five years. Inflation over that period averaged 1.8 per cent annually.
Dividend stocks have been close to a sure thing for investors in the past five years and some people may have unrealistic expectations about how they will behave over the long term. Dividend stocks would be hammered along with everything else in a major market downturn, and sectors such as utilities and pipelines would do poorly in a fast-rising market fuelled by inflationary economic growth. Bottom line, dividend stocks can lose money, unlike guaranteed investment certificates and bonds held to maturity. That’s why dividend stocks should be a part of the typical senior’s investments, not the whole thing. You can still beat inflation this way.
Source: Globe and Mail
Related Articles:
- 9 High-Rated Dividend Stocks With Above Target Returns
- 9 High-Yielding Utilities With A Growing Dividends
- 3 Styles Of Successful Dividend Investing
- 8 Higher-Yielding Financial Services Stocks With Rising Dividends
- 5 Quality Dividend Stocks To Take The Emotion Out Of Investing
Unleash The Power Of Dividend Growth Stocks In Retirement
Posted by D4L | Monday, May 26, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.