S&P was yielding 2% in dividends in 2018 and it is currently yielding 1.23%.
Suppose one wanted to live off dividends and their annual spending is 100k, then they would need 5M to achieve this.
5M in S&P in 2018 would be 10M today without reinvesting dividends and it would yield 123k which is pretty close to inflation from 2018-2014.
Is this a coincidence or dividends track inflation as in the example above. So a dividend only retirement scheme would work without selling any stocks.
This would imply that it is better to set a retirement goal in terms of number of stocks rather than the value itself (assuming you account for splits etc).
Suppose one wanted to live off dividends and their annual spending is 100k, then they would need 5M to achieve this.
5M in S&P in 2018 would be 10M today without reinvesting dividends and it would yield 123k which is pretty close to inflation from 2018-2014.
Is this a coincidence or dividends track inflation as in the example above. So a dividend only retirement scheme would work without selling any stocks.
This would imply that it is better to set a retirement goal in terms of number of stocks rather than the value itself (assuming you account for splits etc).
Statistics: Posted by SweetFire — Sun Sep 29, 2024 5:57 pm — Replies 6 — Views 382