Over the last 50 years, the highest 20% yielding stocks in the S&P 500 returned 14.2% annually. That's good enough to double your money every five years - or quadruple it in 10. And if you were even more selective, say investing only in the 10 highest-yielding stocks of the 100 largest companies in the S&P 500, your annual return would have been even better, 15.7%. This is where investors planning for retirement should be putting their money to work today.
After all, bonds - which should carry a warning label at the moment - are sporting record-low yields. (And their market value will decline as interest rates rise.) Money market funds pay less than one-tenth of 1%. But many dividend-paying stocks are reasonably valued and will boost their payouts substantially in the years ahead. Over the past 50 years, the S&P 500’s dividends have grown an average 5.7% a year, well ahead of the average 4.1% inflation rate. The key for retirees is this creates an income stream that is growing faster than inflation, maintaining and increasing your purchasing power.
Source: Investment U
Related Articles:
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
- All Investing Involves Risk
- 7 Dividend Stocks With Room To Increase Their Payout
- High-Quality, Low-Risk Dividend Stocks
Dividend Growth Stocks News
- Top Dividend Stocks To Consider In July 2025 - Yahoo Finance - 7/17/2025
- Want Steady Income? 3 Top Dividend Stocks for July 2025 - MarketBeat - 7/17/2025
- 3 Top Dividend Stocks to Maximize Your Retirement Income - Yahoo - 7/17/2025
- Unlocking Value in High-Yield Dividend Stocks: A Strategic Guide to July's Undervalued DiviDogs - AInvest - 7/17/2025
- 3 Ultra-Safe Dividend Stocks That Yield Over 5% - 24/7 Wall St. - 7/17/2025
The Best Investment You Can Make for Retirement
Posted by D4L | Tuesday, November 17, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.