It's not too difficult to construct a portfolio of dividend paying REITs, ETFs, CEFs, BCDs and a few individual stocks, to produce a 7% yield. I am doing this and my dividends pay for our entire spending in retirement, of around $90K annually, without having to apply yet for Social Security and without a pension; none of my holdings need to be sold to meet our spending. There is way too much emphasis on only 'dividend growth', although this has some importance. But so many of these 'Aristocrats' have less than a 1.5% or even 2% yield; some yields are under even 1%! Even if they grow 5-10% a year, their dividends will not be able to provide much retirement income.
Comments:
It's not too difficult to construct a portfolio of dividend paying REITs, ETFs, CEFs, BCDs and a few individual stocks, to produce a 7% yield. I am doing this and my dividends pay for our entire spending in retirement, of around $90K annually, without having to apply yet for Social Security and without a pension; none of my holdings need to be sold to meet our spending. There is way too much emphasis on only 'dividend growth', although this has some importance. But so many of these 'Aristocrats' have less than a 1.5% or even 2% yield; some yields are under even 1%! Even if they grow 5-10% a year, their dividends will not be able to provide much retirement income.
Post: What’s the best strategy for generating retirement income?
Link to comment from June 19, 2021