Despite the recent market turbulence, there is one group of investors who have so far been insulated by good decisions they made long ago.
Dividend investors have collected their payments regularly, as those who invested looking to sell to the “greater fool,” in the future have been tossed on a sea of volatility.
If you are serious about a retirement portfolio you can count on, making dividends and income a central focus in your investment plan would be a great start.
You shouldn’t have to work throughout your retirement, and you should have a portfolio of investments that earns year in and year out. Dividend paying stocks and income producing bonds can do that for you.
At The Wall Street Journal, Michael Wursthorn explains how dividends are keeping many investors alive this year.
Companies in the S&P 500 have spent nearly $421 billion on dividends through November, a record-setting sum that eclipsed last year’s mark of roughly $391 billion and the full-year tally of $420 billion, according to S&P Dow Jones Indices. More than two dozen companies announced additional dividend increases so far this month, which will push the year’s total even higher.
Those payouts are easing investors’ burden as they navigate a challenging investment environment. The S&P 500 is on pace to fall 2.8% this year for its first annual loss since 2015, as concerns including a trade spat with China, Federal Reserve interest-rate increases and a sharp drop in oil prices point to the potential for an economic slowdown.
But an index that measures the S&P 500’s total return, which includes dividends, is roughly flat in 2018 after more than 300 companies in the broad index increased or initiated payouts this year.
Read more here.
