Dividends4Life

With interest rates at historic lows, there are far fewer options for drawing a steady income stream from your nest egg. Just over a decade ago, someone who had $1 million saved for retirement could park it in simple CDs and get more than 5% interest, providing an annual income above $50,000. Today, the same investment strategy would yield about 0.3% -- or an income of $3,000.

That's why Bob and many other retirees are looking more closely at stocks that pay dividends -- a portion of the company's earnings -- to shareholders, typically each quarter. Dividends are usually quoted in the dollar amount per share. An investor who owns 10,000 shares of a company with a dividend of 8 cents a share will receive $800 over the course of the year. But simply choosing a handful of the highest-yielding shares is not the best approach, experts say.

Source: Daily Finance

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