1 / 1

Living Off Dividends In Retirement

Suppose the $1 million was invested in a dividend-focused fund yielding 3.5%. Over 28% of the $35,000 of dividend income generated would go towards fees. These funds are typically comprised of multiple dividend-paying stocks.

c9pxvja349
Download Presentation

Living Off Dividends In Retirement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Are you fascinated by the rise and fall of stocks around the world? Look at the statistics: In 2015, 394 companies trimmed dividends, according to data provided by Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Including reinvested dividends, the Australian share market has surpassed its 2007 record high. For investors, these corporate maneuvers are just another indication that the stock market is operating under duress. Dividend stocks, especially high dividend blue chip stocks , are just another tool in your toolbox that can help you diversify your investments and your passive income stream in retirement. At the time of publication, the author held no positions in the stocks mentioned. I try to avoid selling any company regardless how far the stock price falls. Dividend stocks are regarded as defensive stocks because of their ability to weather the volatility of both bull and bear markets. There are several reasons why this is the case: when companies retain a high proportion of earnings there is a tendency for poor hubris driven investments; high dividend payouts are indicative of corporate confidence about future earnings; and high payouts indicate earnings are real. In total, nearly 90% of the market value of Bershire Hathaway's portfolio is in dividend paying stocks. The chief appeal of dividends is the opportunity to receive cash returns from stocks that are always positive, keep increasing, and are independent of price fluctuations. Investing in stocks allowed Ricard to transition from mechanical engineer to full-time online entrepreneur. Dividends are actual income. It's important that dividend imputation is retained in Passive income Australia to ensure dividends are not taxed twice and companies continue to pay out decent dividends. Dividend payments to Berkshire Hathaway give Buffett even more money to work with and acquire new businesses with strong competitive advantages. Once again, the focus can remain on locating safe dividend payments rather than getting concerned with the market's price volatility and how that might impact your withdrawal amounts.

More Related