Just because a company pays a dividend, grows its dividend regularly or is even a Dividend Aristocrat, does not mean it is going to give you the returns you need for retirement. That’s because inflation is not just 3%. It is actually closer to 10%. This is one of the dirty little secrets that your broker and the investing business don’t want you to know. It is the fundamental reason why I created The Liberty Portfolio — to inform investors that they are not properly invested. You need to generate real returns of 10% annually to retain your purchasing power. So buying a “safe dividend” stock that pays 3% isn’t enough. That dividend growth also needs to be growing at a rate that brings your total annual return to 10%.
The first dividend aristocrat to buy that will deliver those 10% annualized returns is Aflac Incorporated (NYSE:AFL). VF Corp (NYSE:VFC) is not a company that sounds interesting or, for that matter, a company that most investors have even heard of. If you pay attention to people you meet at everyday jobs, like janitors or firemen or other types of homogenous workers, you’ll find the products of Cintas Corporation (NASDAQ:CTAS).
Source: InvestorPlace
Related Articles:
- 8 Dividend Stocks With A 15% Yield In 15 Years
- Don't Touch These 5 Dividend Stocks!
- 9 Higher Yielders With A Low Free Cash Flow Payout
- 6 Dividend Stocks Headed In The Right Direction
- Are The Dividends Safe For These High-Yielding Stocks?
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Not all utility stocks are cut from the same cloth. There have been some dividend blow-ups in the sector, as a few have become over-leverage...
-
Two conservative industry bellwethers with giant yields and strong businesses -- there's a lot to love here. Dividends are only as good ...
-
In today’s market, high-yield stocks are usually not the safest bets. I mean, if a company is solid and offers a yield much higher than its ...
-
You have good reason to be nervous. Anyone who had just seen their retirement account take a big haircut would lose sleep. The question is, ...
-
On the surface, AT&T (NYSE: T) may look like a compelling investment. It is one of the largest telecommunications companies in the world...
-
This REIT continues to make a strong value proposition for investors that value income stability in a volatile market. It convinces in terms...
-
Studies have shown that there is no single best season or month to trade stocks -- take that, January Effect! That said, there are some soli...
-
Most dividend stocks pay on a quarterly or even semi-annual basis. And while that may not seem like a problem, for many retirees used to a m...
-
Buying and holding high-quality, high-yield dividend stocks is a great way for investors to predictably generate market-beating returns over...
-
It is said that income investing is a negative art. Your goal isn’t to pick the winners — it’s to avoid the losers. You want to pick winners...
0 comments
Post a Comment
Post a Comment