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Planning for retirement is not easy. Some people will add up a lump sum figure of cash they would need to live on during their retirement years. They may annualize their monthly expenses, then multiple this figure by the number of years they expect to spend in retirement. When adjusted for inflation, this figure can seem astronomical. While living off of a lump sum of cash that you have saved up is one way to plan for retirement, another method involves creating streams of income that you can live off of. Buying the highest dividend paying stocks and living in part off of dividends is one strategy to consider.

How Much Can You Earn Off of Dividends

It is entirely possible to live off of dividends. Dividends are typically paid out quarterly, and they can be used as a sole source of income or in conjunction with other sources of income such as Social Security, rental income from real estate investments and more. In order to determine if this is a feasible option for you to consider, you first have to consider how much money you can earn off of dividends. Few people will want to invest all of their cash into a single stock, so determining how much income you can obtain through your stock purchases can be difficult. You may decide to invest in ten or even twenty different stocks in order to minimize risk. With some basic calculations, however, you can do the math and figure out how much income you can generate for yourself now and into the future.

Stocks to Consider

If your goal is to live off of dividend income, you should pay attention to the highest dividend paying stocks as well as those stocks that have a history of having a stable or generally increasing dividend amount. Consider that companies can decrease or revoke their dividends entirely and without notice. If this happens, you can certainly sell those stocks and buy other stocks. However, you do want to avoid this altogether as it can affect your income. To avoid this, consider those stocks that have a stable dividend history over at least the last decade or so. The more reliable a company's dividend history has been, the more reliable that income source may be for you. Keep in mind that is it best to diversify your income as much as possible in retirement to minimize risk.

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Q: Can You Retire on the Highest Dividend Paying Stocks?
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What are the 7 best dividend paying stocks?

Mcdonalds, Proctor Gamble, GE, Abbott Labs, Pfizer, Yum Brands, Microsoft


How can I add my finances to my dividend calendar?

The use of mint.com is a great tool to incorporate the dividend calendar into your finances. The dividend calendar shows how much your stocks are making you.


Benefits of the Highest Dividend Paying Stocks?

Investing in the highest dividend paying stocks pays off in the long run for an investor. Of course, dividends are usually paid out on a quarterly basis. An investor can reap the rewards of these regular payments and benefit from the capital gains too. The opportunity for long-term financial success is more than possible here. Undoubtedly, careful and long-term investing is the key to success. Nobody should assume they cannot take advantage of all dividends have to offer in this day and age. Typically, the highest dividend paying stocks come from companies that are worth quite a lot of money. The stocks themselves might cost a bit too. An individual investor must be prepared to spend some money in order to earn this regular return. Focusing upon stocks that are likely to grow is always a smart idea. Obviously, no company is required to offer dividends, and a period of financial trouble can cause any business to do away with these payments. Therefore, investors must be careful when focusing upon dividends in their portfolio. Certain companies are more likely than others to offer high dividends on a quarterly or annual basis. For instance, banks and technology companies tend to offer great dividends and capital gains alike. An investor should focus upon these investments as long as they are considered strong bets in the long run. Nobody should invest in a company that is likely to see a negatively fluctuating dividend on a regular basis. Without a doubt, some stocks are more likely to perform strongly and keep a high dividend across many years without issues. For the most part, the highest dividend paying stocks are easy to locate because they are commonly listed through investing publications. A person should not ignore the potential for dividends to create a solid passive income for the years to come. Some investors could almost live off their annual dividend payments. Reaching that point requires time and wise investments, so a person should keep that in mind. In the end, success is never guaranteed with investments. Still, a wise investor can build success and passive income over the long term.


How is common stock different from preferred stock?

Common stocks--a type of stock that pays a variable dividend and gives the holder voting rights. Preferred stocks--a type of stock that pays a fixed dividend and carries no voting rights.


What is limitations of preference shares?

One of the limitations to preference shares is that the shareholder does not have a voting right. Preference shares normally pay a fixed dividend where common stocks do not pay a fixed dividend.

Related questions

Where can one find information on dividend paying stocks?

There are a number of websites that offer information on dividend paying stocks. One can get this information on 'Market Watch', 'Dividend', 'Wikipedia' and 'Investopedia'.


Where might one go online to find out what the highest dividend paying stock is?

To find out which stocks have the highest paying dividends online, one could visit such websites as dividend or dividenddetective. It is also possible to consult resources such as news sources.


What is the best dividend stock to own right now?

I would like to recommend you to drive thru with highest yield dividend stocks with good potential in the market.


Is payment of a dividend a requirement of a stock corporation?

No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in order that those mutual funds might buy their stock.


What are the 7 best dividend paying stocks?

Mcdonalds, Proctor Gamble, GE, Abbott Labs, Pfizer, Yum Brands, Microsoft


What are the names of some high dividend stocks?

There are many high dividend stocks. Some high dividend stocks are Duke Energy, Dow Chemical, Energy Transfer Partners, Exxon Mobile, and General Mills.


Should You Buy the Highest Dividend Paying Stocks?

It seems as though each investor has a unique strategy when it comes to investing in the stock market. Some may follow the investment advice of top stock market gurus. Others may purchase tried and true blue chip stocks. Whatever your own strategy is, one thing is for certain. You want to see your money grow rapidly with time. There is some benefit in purchasing the highest dividend paying stocks you can find. To generate a list of high divided stocks, you simply have to run a search query on the Internet. Some websites will list the top 20 or even top 100 stocks with the highest dividends. However, this may not be the strategy you want to follow.High Yield StocksWhether you are interested in growing the value of your stock portfolio quickly or you want to build a large stream of dividend income to retire on, high yield stocks can certainly help you to accomplish that. These are stocks that have a higher dividend payout than other stocks. The dividends can be re-invested to maximize growth, or you can enjoy income from them. While these high yield stocks offer some greater benefits than other stocks may offer, many of these stocks are for companies that most average investors have never heard of. You can take time to analyze the risk associated with a stock purchase in these companies. However, many investors follow the sage advice that tells you to buy what you know. Buy stocks in companies who you are familiar with and who you enjoy working with.The Right High Yield StocksWhile many high yield stocks are stocks for companies you may have never heard of, there are plenty of fairly high yield stocks from companies that you may recognize by name and may be familiar with. Savvy investors may want to take time to crunch the numbers, do company research and more. However, if you are an average investor who only makes small stock purchases, investing in what you know and diversifying your portfolio is a sound strategy to follow. There are many brand name companies that do offer a high dividend to stockholders.


What is a good dividend stock to invest in?

hello friend, A good dividend Stock to invest in my view of context.High-growth momentum stocks are nice, but many investors these days are more interested in stability and dependable dividends. If you're an income-oriented investor, this list of Dependable Dividend Stocks is for you. Some of these stocks may be boring, some of the yields may not be thrilling and some may not have impressive earnings growth in their future. But all of these Dependable Dividend Stocks are rock-solid when it comes to preserving capital and making regular dividend payments. Check out the list below and sort by company, yield or dividend history.


How can I add my finances to my dividend calendar?

The use of mint.com is a great tool to incorporate the dividend calendar into your finances. The dividend calendar shows how much your stocks are making you.


Benefits of the Highest Dividend Paying Stocks?

Investing in the highest dividend paying stocks pays off in the long run for an investor. Of course, dividends are usually paid out on a quarterly basis. An investor can reap the rewards of these regular payments and benefit from the capital gains too. The opportunity for long-term financial success is more than possible here. Undoubtedly, careful and long-term investing is the key to success. Nobody should assume they cannot take advantage of all dividends have to offer in this day and age. Typically, the highest dividend paying stocks come from companies that are worth quite a lot of money. The stocks themselves might cost a bit too. An individual investor must be prepared to spend some money in order to earn this regular return. Focusing upon stocks that are likely to grow is always a smart idea. Obviously, no company is required to offer dividends, and a period of financial trouble can cause any business to do away with these payments. Therefore, investors must be careful when focusing upon dividends in their portfolio. Certain companies are more likely than others to offer high dividends on a quarterly or annual basis. For instance, banks and technology companies tend to offer great dividends and capital gains alike. An investor should focus upon these investments as long as they are considered strong bets in the long run. Nobody should invest in a company that is likely to see a negatively fluctuating dividend on a regular basis. Without a doubt, some stocks are more likely to perform strongly and keep a high dividend across many years without issues. For the most part, the highest dividend paying stocks are easy to locate because they are commonly listed through investing publications. A person should not ignore the potential for dividends to create a solid passive income for the years to come. Some investors could almost live off their annual dividend payments. Reaching that point requires time and wise investments, so a person should keep that in mind. In the end, success is never guaranteed with investments. Still, a wise investor can build success and passive income over the long term.


What is procedure of dividend payment?

Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.


What is payment of dividend?

Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.