When one reads typical retirement advice, they’re often told that beginning in retirement they should start withdrawing about 4% of their portfolio for living expenses each year. The 4% rule is standard retirement advice that gets cited all the time since it’s considered a safe withdrawal rate for the average retiree. However, the downside of this plan is that the [...]
Many times when we’re looking at a stock to buy we think about the potential upside to the investment. We like to hope and dream about how much money we can make and what we’ll do with it when we get it. This way of thinking can lead to trouble however because we [...]
I checked my brokerage account this morning and saw that my quarterly dividends from Philip Morris, Heinz and Diageo hit my account in the past week. To me there’s something great about receiving dividends… I think it’s the fact that I didn’t have to work for any of this money that makes it so special.
Also, [...]
In the past I’ve posted a couple of times about the importance of dividends. Here’s an interesting article that illustrates their importance with a great chart. The chart shows total stock returns by decade and then breaks down the returns between capital gains and dividends. The data is clear… ignore dividends at your own risk.
(Please [...]
In my previous post I discussed the basics on dividends. I left off telling you that the large majority of stock market returns over the past century have resulted from the reinvestment of dividends. In this post I’ll tell you why dividend paying stocks outperform their non-dividend paying counterparts, and how you can begin yielding [...]
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”
- John D. Rockefeller
What Are Dividends?
Today I wanted to take some time to talk about dividends. For those of you new to investing, dividends are cash distributions that companies pay directly to their shareholders. When a company earns a [...]