Investing for retirement should always be focused on certainty of returns. And while dividend stocks might not appear to be an important part of building up a retirement portfolio, they do provide a better level of certainty in returns. By collecting dividends and reinvesting them, a portfolio can rise in value over time.
And in turn, when you’re retired, dividends provide cash flows which can be used to fund your life in retirement
The vast number of U.S.-listed companies pay their dividends on a quarterly basis. And beyond the borders of the nation, many companies stretch out their distributions to bi-annual or even annual payments. Their argument is that only after the company’s fiscal year is wrapped up should the cash crumbs be spread out to the pesky shareholders.
Leave a Comment