The notion of using dividends as income in retirement is drawing plenty of interest these days. Experts say it can be done—with the right strategy.barrons.com/articles/yes-y…
A dividend is a way for a company to return capital to its shareholders, in this case via a dividend check. Most U.S. companies pay a dividend every quarter. Investors love dividend stocks for a few reasons:barrons.com/articles/yes-y…
Dividends tend to grow over time, providing a hedge against inflation. Many reinvest dividends, creating more long-term growth. Companies that pay steady dividends are often regarded as well run. And investors can use dividends as income in retirement.barrons.com/articles/yes-y…
The concept of retiring on dividends has spawned something of a movement, with investors of all ages and sophistication levels adopting sound strategies to build a portfolio for the long haul.barrons.com/articles/yes-y…
“A big appeal of dividends is really that it’s kind of psychologically easier to stay the course,” says Brian Bollinger, founder of Simply Safe Dividends. “You are focusing on building this growing income stream regardless of market conditions." barrons.com/articles/yes-y…
But before building a portfolio of dividend stocks, investors need to consider the pros and cons of relying heavily on dividends in retirement—and there’s no shortage of each. barrons.com/articles/yes-y…
An income-dependent retirement strategy isn’t something to set and forget. “Inevitably there will be a company or multiple companies that at some point cut their dividends, so then you have to adapt," says Advisors Capital Management's Charles Lieberman. barrons.com/articles/yes-y…
And not every retiree or saver has the desire, prowess, or time to regularly focus on a stock portfolio. Using mutual funds or a financial advisor can make a lot more sense, their fees notwithstanding. barrons.com/articles/yes-y…
Still, several of the retirement dividend-investing practitioners Barron’s spoke with believe that it’s possible to actively manage a portfolio of dividend stocks for long-term capital return while minimizing the risks.barrons.com/articles/yes-y…
Dividend-paying stocks can make a lot of sense for retirees, many of whom face “very difficult investment decisions,” says David Katz, chief investment officer at Matrix Asset Advisors, pointing to low bond yields and rich valuations as major headwinds. barrons.com/articles/yes-y…
Certain dividend stocks, Katz says, “should allow for a healthy and growing income stream and reasonable portfolio growth over time” while providing some downside protection when needed. barrons.com/articles/yes-y…
Based on input from Katz and other financial pros, as well as our own research, Barron’s came up with a portfolio of 10 dividend-paying stocks that retirees should consider. See our picks in this week's Barron's cover story. barrons.com/articles/yes-y…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
