We hit three aspects of dividend investing crucial for many retirees: Dividend Yield, Dividend Safety, and Dividend Income. We’ll go through what they really mean, their role in one’s portfolio, which metrics to follow and how to improve or protect them.
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- The dividend yield’s definition seems obvious. But there are a few details that investors need to be aware of to really understand how it is created and what impact it has. Mike insists that the yield has nothing to do with inflation.
- Many investors believe yield is one of the most important aspects of dividend investing. Yet, the role it should have in one’s portfolio is not a top priority. Mike recently compared 48 stocks and came to a shocking conclusion.
- While the metric to follow is pretty easy to identify, understanding it will tell you much about the health of the business you consider or hold.
- Many investors believe that a continued dividend payment is a safe dividend. However, investors should be more demanding. Mike explains that an equal dividend equals a passive cut.
- The role played by dividend safety in one’s portfolio is crucial for investors to retire stress-free. The dividend triangle, payout ratios and trends are the metrics to ensure your future dividend payments will continue and increase.
- Of course, one of the most attractive parts of dividend stocks is to get dividend income. Remember, though, that dividend income is more than dividend payments. You should see it as your pension and manage it accordingly.
- The metrics investors need to follow to protect their dividend income are related to dividend safety. Mike adds that investors must focus on long-term wealth preservation.
- There is a way to improve your dividend income by using total returns. In other words, investors can sell a few shares and combine that with their dividend income to get a more comfortable retirement.
- Ultimately, which of the three D’s is the most important? Mike’s answer doesn’t start with a D…
What’s to learn from high inflation and rising interests? How should investors adapt and manage their portfolios in such an environment?
Lessons Learned from Inflation and High-Interest Rates [Podcast]
Payout ratios can be a good start in investigating a company’s dividend safety. But which one should you use? What’s a good payout ratio and what does it tell you exactly?
Protect Your Dividends: Master All Payout Ratios [Podcast]
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The post 3 D’s of Retirement: Dividend Yield, Dividend Safety, Dividend Income [Podcast] appeared first on The Dividend Guy Blog.