One thing most of us need in retirement -- besides hobbies and senior-citizen discounts -- is income. Once you stop working and your paychecks stop arriving, you'll need some money coming in with which to pay bills and live a comfortable life. Retirement income is critical, and it's up to you to plan where it's going to come from. There are plenty of possibilities besides Social Security, such as retirement accounts, regular investment accounts, dividends, and annuities. Let's review these...
Dividends are also a great retirement income source, and they have the terrific habit of being increased over time, too, when they're coming from healthy, growing companies. Imagine, for example, that your $300,000 investment account is kicking out $6,000 in dividends to you this year. That's an overall yield of about 2% -- not bad! But if those payouts are upped by an overall annual average of 5% over a decade, they'll approach $9,800 in 10 years. Dividends don't officially offer inflation protection, but they do often grow at a faster rate than inflation, which can be very welcome in retirement.
Source: Motley Fool
Related Articles:
- 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
- 10 Stocks Building Wealth Through Higher Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Having a few trusty dividend stocks that you can approach with a "set it and forget it" mindset takes a lot of the stress out of i...
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
When it comes to stock investing while in retirement, dividend stocks tend to be some of best investments you can make. Not only do they ten...
-
When the average S&P 500 company pays less than two percent, a 6.5%-yielding stock certainly deserves income investors’ attention. A Top...
-
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Ba...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
0 comments
Post a Comment
Post a Comment