Hi all,
I'm 60yrs young with the following portfolio about 64% invested in VTSAX,
about 13% in dividend stocks, 12% in a land contract,
the remaining 11% in interest bearing accounts.
Most of the dividend stocks (60%) are REITs, paying very high dividends
and therefore a bit risky but, I think they have taken most of their hit already,
actually doing well with the market down for the year and generating 12% dividend.
The others 40% is in paper, bank, and tech, pay about 6%.
I'm trying to decide if I should get into more dividend stocks.
If I did, it would not be in these high payers, it would be in what are
called 'The Aristocrats', stocks that have paid an increasing dividend for
25 years or more. They generally only pay 1% to 6%, but can also be
expected to have price appreciation. If interested Google dividend aristocrats.
Here are the 52 S&P 500 Dividend Aristocrats, there are others,
http://www.buyupside.com/dividendaristocrats/displayalldividendaristocrats.php Now, the confusing part, as if I'm not already confused, I'll be retiring it
18mo or less, my wife probably 5 to 10 yrs. Since her income will be enough
to live on, I already question the idea of dividends.
I started dabbling with individual stocks for fun and got lucky with several
even through this downturn, I'm good, but I don't need the dividend income.
So, I have about 11% in basically cash, when this downturn settles,
I'd like to put the little soldiers to work, but where?
VTSAX or income stocks?
I find writers saying dividend stocks out perform the S&P and
writers saying just the opposite, but I haven't found how they are
calculating different.