Dividend stocks remain an excellent way to grow your portfolio before and during retirement
In October 2020, I created a dividend ladder for an article
I was writing about dividend stocks. The idea was to select a stock yielding
1%, 2%, 3%, all the way to 7% or beyond.
The thing is, you can’t always find good companies at
precisely each of those yield points at a particular point in time, so you’ve
got to maintain some flexibility.
The original seven dividend stocks have all performed well
above my expectations over the past six months. However, I rarely recommend
stocks for near-term gains. I almost always look out 3-5 years. That’s where
the real money’s made.
I’ve been asked to write about 10 ideal dividend stocks for
your retirement. I want to repeat my October exercise by creating a dividend
ladder. Instead of listing my recommendations in ascending order, this time,
I’ll go in descending order from 10% down to 1%.
Like I said earlier, I’ll do my best to meet my yield
points, keeping in mind that the overall exercise here is for investors to make
money in the long run while remaining relatively stress-free about their
holdings.
Some of these stocks are meant to play defense, while others
are meant to go on the offensive. Together, they’ll make for a healthy and wealthy
retirement.
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