Retirees, You CAN Count On Dividend Stocks To Deliver From Here

I just finished reading another article that I disagree with. Not only do I disagree with the author but the article further supports those investors who follow the dividend growth investment path. The author's suggestion is as follows: "While the accumulation stage and spending stage are entirely different beasts, perhaps a retiree should think like a young accumulator whose greatest weapon is investing in stocks on a regular schedule to acquire stocks when they offer sensible or attractive valuations? That would mean taking some of the recent generous but outrageous gains of the last 1-2 years off the table. Certainly my suggestion of 3 years cash and the remainder in stocks does not look prudent from here for those who might need that initial 4% spending ratio that is inflation adjusted. That investor may run into one of those periods where the modest cash and stock model fails."

My opinion on this is that anyone who follows this advice would stop having money work for them. Yes, one might consider moving from a risk portfolio with only growth stocks to a portfolio of dividend champions that have, and more than likely will continue to grow income, which is precisely what retirees need to pay the bills.

Source: Seeking Alpha

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