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In my opinion, whether dividend stocks or growth stocks are better suited often comes down to beta and investor's income needs at various stages of life. For an investor who has current income needs and depends upon regular income, will you feel comfortable selling non-dividend paying growth stock down 25%+ in a bear market vs. receiving regular/growing dividends.
Of course, these are generalities, since any stock can cut dividend and any growth stock can tank.
A lot of people should now consider CD's. But there are a whole lot of variables there, so you have to weigh everything that is going on in your life - including an estimate of how many birthdays you have left!
We keep plenty of CD and money market money. Looks like we'll get about 2.7% this next time; maybe more. But everyone is different.
This is the retirement forum so I assume everyone should have a retirement investment portfolio - bonds and less risky investments, maybe some stocks for growth but the majority in safe funds. Why are you retired people investing so much in stocks knowing that in the short term they are subject to up and down trends. If you are - shame on you, you got bad investment advice.
Stock are for long term investment, you shouldn't touch them except to shift investments as you age. To do it during a bear or bull cycle is just chasing you tail and asking for trouble.
For the rest of us that have 10 years or more before retirement, just ride it out. If you invest in a company funded 401k look at the bright spot - your next paycheck deductions are buying stock at bargain prices.
Dividends remain constant? Tell that to the folks that still have GE!
ha ha ha , even those dividend aristocrats have been crapping the bed over time .
what constitutes this group changes all the time so get ready for lots of selling trying to keep up as they get bumped and replaced AFTER THE FACT THEY DID NOT LIVE UP TO EXPECTATIONS . you could be behind the curve here very easily .
these dividend aristocrats are not somehow immune to all the things that effect company's and stocks . Just like other companies, their outcomes change.
in 2009 there were 52 stocks that met the group’s strict criteria.
As of 2012, there were 51.
But of those 51, 13 were different than the original set. So over the course of just 3 years, there was a 27% change in the group’s composition.
in fact going back to 1989's list :
Of those 26, seven are still on the list today, ten were removed because they either cut or froze their dividend, four were removed for an unknown reason, and the remainder were aquired at some point. So at least ten of the 26 had an outcome that is different from the assumption of dividend growth every year through thick and thin.
This is the retirement forum so I assume everyone should have a retirement investment portfolio - bonds and less risky investments, maybe some stocks for growth but the majority in safe funds. Why are you retired people investing so much in stocks knowing that in the short term they are subject to up and down trends. If you are - shame on you, you got bad investment advice.
Stock are for long term investment, you shouldn't touch them except to shift investments as you age. To do it during a bear or bull cycle is just chasing you tail and asking for trouble.
For the rest of us that have 10 years or more before retirement, just ride it out. If you invest in a company funded 401k look at the bright spot - your next paycheck deductions are buying stock at bargain prices.
the bulk of retirees are 40-60% equities . as far as why ? over typical 30 year retirements at a 4% safe withdrawal rate that is the safest allocations . less than 40% becomes very risky at 4% and inefficient use of your money at 3% or lower draws
In my opinion, whether dividend stocks or growth stocks are better suited often comes down to beta and investor's income needs at various stages of life. For an investor who has current income needs and depends upon regular income, will you feel comfortable selling non-dividend paying growth stock down 25%+ in a bear market vs. receiving regular/growing dividends.
Of course, these are generalities, since any stock can cut dividend and any growth stock can tank.
there is no difference selling from a portfolio vs a stock dividend .
a pay out has a mandatory reduction so a 5% dividend needs to see appreciation in the share price or the stock will stay down 5% with every payout it must have appreciation to drive total return positive . in the end selling equal dollars from a portfolio leaves the exact same balance .
selling a piece of the share price off in a down market with a mandatory reduction is the same as selling a piece of a share with no reduction in price from the sale .
there is no magic here .... the effect is identical . all the div does is save you the job because the company does it for you .
Last edited by mathjak107; 12-24-2018 at 11:34 AM..
NOW ----- I am starting to panic and everyone I know personally is starting to panic ------ It IS getting bad. I think we are in free fall mode and our great "leaders" and "advisers" refuse to work together, thus creating more chaos and uncertainty!
NOW ----- I am starting to panic and everyone I know personally is starting to panic ------ It IS getting bad. I think we are in free fall mode and our great "leaders" and "advisers" refuse to work together, thus creating more chaos and uncertainty!
Jesus...take the wheel.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
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Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
NOW ----- I am starting to panic and everyone I know personally is starting to panic ------ It IS getting bad. I think we are in free fall mode and our great "leaders" and "advisers" refuse to work together, thus creating more chaos and uncertainty!
