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Strategies & Market Trends : Dividend investing for retirement

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B.O. Plenty
Kip S
To: E_K_S who wrote (30432)1/18/2019 1:10:19 AM
From: geoffrey Wren2 Recommendations  Read Replies (1) of 34328
 
Bogle pushed the S&P 500 ETF. I believe his perspective was it did not matter whether portfolio draws came from divvies or capital appreciation. I think Buffett thinks the same.

The problem with divvies at 4% is that higher divvies are more subject to reduction. No more “widows and orphans stocks” that can be presumed to continue the dividend. One might think one is taking a more conservative approach and forsaking the chance of larger gains, but that can be an illusion.

It would be interesting if they did some Monte Carlo simulations assuming a portfolio of stocks paying relatively higher dividends to see how that would have worked for the retiree in the past.

All that said, there is something comforting about an apparently stable dividend stream when in retirement.
Less stressful.
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