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To: PGR88
The best yield, blue-chip dividend stocks are paying only 2-3% (oil sector is a bit higher) but that would only give you $10-15K/year in dividend interest.

You may need to re-visit some of the blue chips. Currently, AT&T is at 5.83%, Verizon is at 4.25%, Exxon is at 5.10%, Altria is at 6.88% and Ford is at 6.7%. There are great opportunities to get great blue chips now, lock in the $/dividend, and watch the dividends increase each year.

91 posted on 08/19/2019 10:13:04 AM PDT by Go Gordon (I gave my dog Grady a last name - Trump - because he loves tweets.)
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To: Go Gordon

Even though I myself own several of the dividend paying stocks you mentioned, I would not rely on individual equities alone as a retirement income strategy. Most every investor needs a balanced portfolio (some combination of stocks / stock mutual funds and bonds/bond mutual funds) that’s appropriate for that person’s risk tolerance.

Individual equities are HIGHLY risky for all the obvious reasons. Go look at GE as an example. Or worse, CTL - one of the highest paying dividend stocks in the S&P 500. They were paying a $2.16 / sh dividend until they cut it to $1/sh. That was AFTER exec management promised up and down that they were “comfortable with the dividend for the forseeable future” - about 2 weeks before they cut it.

YMMV. While dividend stocks can be a PART of an income strategy, there should be a more diversified, broader foundation in place also..and on a $500K portfolio..not sure I’d even recommend you invest in individual equities..

I also wouldn’t count on getting 5% returns..history has not shown that to be a safe withdrawal rate (SWR). Lots more discussion on that point on the forums I mentioned up-thread..4% max..3.5% better, or you may risk running out of $$ in retirement..


106 posted on 08/19/2019 10:42:08 AM PDT by jstolzen
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