![]() Other traditional income-generating investments like certificates of deposit and corporate bonds are also trading with historically low yields. Treasury yield has touched 1.7% in recent days, passing the S&P 500’s average yield, interest rates remain low by historical standards. If you missed out, however, it’s not too late: Below, we identify 10 stocks with solid yields, consistent payouts, and seeming durability.Ī key force behind the burgeoning interest in retiring on dividends is ultralow interest rates. Groups devoted to the topic along with blogs, newsletters, books, and various other platforms.īut last year’s selloff and relative underperformance offered a chance for nimble dividend investors to add to holdings they considered to be undervalued. The strategy has spawned something of a movement, encompassing investors of all ages and levels of sophistication. Yields on many traditional income investments are now near historical lows, and the onus increasingly is on individuals to secure their postcareer income. The notion of using dividends in retirement, either as a way to complement other financial assets, as Baker does, or perhaps rely on them for an even larger percentage of income, is drawing plenty of interest these days. The yield on the dividend stocks in his portfolio was recently 4.5%. (PRU)-longtime dividend payers that sport yields well above the Dividends from his retirement accounts are transferred every month into a taxable account to cover required minimum distributions, or RMDs-which kick in after a retiree hits 72, up from age 70½ previously.
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