A few weeks ago I had someone ask whether it was possible to live off of dividend income alone in retirement. This gentleman had saved up a nice chunk of money and was currently invested 100% in stocks. He was eligible for Social Security benefits, and was intent on never selling any of his shares in retirement.
Instead, he wanted to live off the dividends his portfolio produced to pay his expenses. He thought that between his Social Security benefits and dividend income he’d have plenty to pay his bills. I thought this was an interesting question, and dive into the details in today’s podcast episode.
Show Notes
[05:30] Dividend Yield – Grant starts the conversation by explaining how the dividend yield goes up and down over time and how you calculate it.
[10:15] S&P 500 – Grant explains the factors contributing to the S&P 500's dividend yield staying at 1.8% since 2000.
[18:00] Components to consider – Grant shares some important considerations about the current state of the dividend yield.
[25:00] Trouble – Grant explains how you can get into trouble if you decide to invest in dividend yields.
[29:19] Grant’s take – Grant shares his thoughts on dividend investing.
Resources
https://www.wsj.com/articles/irs-changes-guidelines-for-inherited-iras-causing-confusion-and-pushback-11659309278