If you want to retire on dividend income, then you probably need to avoid S&P 500 stocks altogether.
Collectively they yield 1.9% today. This means that a million dollars invested will generate just $19,000 per year. That’s “side hustle” money, not an actual full salary.
Another problem with buying popular stocks and “hoping” they appreciate in price? The odds are actually stacked against you thanks to an uneven business playing field. Check out the returns of “safe” S&P 500 stocks year-to-date. Would you like to throw a dart blindfolded at this board?
Source: Contrarian Outlook
If you delved into some of the stocks from this grossly overcrowded index, you …
- Had a better-than-50% chance of losing money.