Dividend stocks can play an incredible role in helping you retire comfortably, but not necessarily the way you think. On the surface, they look tempting. In today's low-interest-rate environment, it takes a 10-year U.S. Treasury bond to even approach the yield you can get by owning a typical S&P 500 stock. If you make investments that focus on dividends, you can collect even more cash from your stocks than you would by investing in that market-tracking index.
On top of that, dividends have the potential to increase over time -- and if you choose wisely, that income will be accompanied by capital appreciation. Add yields comparable to, or even higher than, those of bonds, and the case for owning dividend-paying companies starts to look compelling. These properties look particularly tempting for retirees, who tend to value steady income and avoid the risk of being forced to sell stocks in a down market to generate cash. If you can get enough income from dividends to cover your costs and enough income growth from dividend increases to beat inflation, then it looks like you can get what you need in a single package.
Source: Motley Fool
Related Articles:
- Are Defense Stocks Good Defensive Stocks?
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell Intel?
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
If you are retired, you have likely shifted from building your nest egg to living off your assets. That means you probably gravitate toward ...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
REITs are reporting higher revenue and earnings so far for the quarter. But one of the specific metrics for profitability comes from the rat...
0 comments
Post a Comment
Post a Comment