In putting together my own investment portfolio, a sizeable piece is devoted to dividend-paying stocks. The aim is not necessarily to beat or equal the S&P 500…

In putting together my own investment portfolio, a sizeable piece is devoted to dividend-paying stocks. The aim is not necessarily to beat or equal the S&P 500…

— Chris Volk

“…

The aim is to have a pool of rising cash flow that covers a reasonable amount of my living costs so that I do not need to be dependent on capital gains, margin loans or market moves.

Historically, I have found it a challenge to find dividend yields approximating 5%. Keep in mind that most pension funds have actuarial return assumptions in the area of 7% (and often less), which means that a 5% dividend company only need to produce 2% annual growth.

Timing a market bottom is hard, but I know a good deal when I see it. Net Lease REIT’s may head lower as volatility, economic concerns and a “casino market” reign. Meanwhile 5% is amazing and I’m a buyer.”

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