Are Dividends Just for the Rich?

It is true that a $100,000 portfolio like the one I’m managing for my father will not be able to produce enough income for anyone to live on comfortably. Unless your idea of comfort is a grass shack, some coconut trees and a fishing pole. Heck, even if we really went out on a limb and bought the most aggressive high-yield stocks out there with the entire hundred grand — which is NOT my recommendation — we would still only be generating about $10,000 to $15,000 a year.

But here’s the thing: I’m not saying a $100,000 portfolio of dividend stocks can be your sole source of income in retirement. Hopefully, and despite all the problems with the other traditional retirement systems, you will have other streams of cash coming in from Social Security, a pension, and/or other sources. And even if you don’t, I’m still saying that a $100,000 portfolio is best invested primarily in dividend stocks for the ideal combination of growth, safety and income.

Source: Money And Markets

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