7 Reasons to Invest in Dividend-Paying Stocks for Retirement | Smart Change: Personal Finance | #retirement | #elderly | #seniors
7. Dividend payers produce cash
Dividend payers produce cash, and that can be crucial to ensuring your long-term solvency in retirement. To the extent you can use your dividend payments to fund retirement distributions, you’ll be less reliant on liquidations. Fewer, less-frequent liquidations keep your earnings power intact and lower your risk of selling at the wrong time.
Stability and reliability
There’s no guarantee any company will continue paying its dividend, just as there’s no guarantee any stock will appreciate over the long term. To avoid those risks, you need to stay out of the stock market entirely, which might guarantee you’ll fall short of your retirement savings goals.
Dividend payers aren’t risk-free, but they are often more stable and reliable than their peers that don’t pay dividends. And those are just the qualities you want from your retirement portfolio MVPs.
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