To retire on dividends, we have just two requirements. They are simple, though perhaps not exactly easy:
- Earn safe, meaningful yields. Five percent is our floor, thirteen is our stretch goal. We’ll discuss five stocks in this dividend range shortly.
- Keep our principal intact. To do this we’ll focus on “low beta” stocks—shares that move less than the broader market.
Beta says how much (or how little!) an investment moves compared to some benchmark. With stocks, beta is usually going to measure movement against the S&P 500.
Here’s an example. Let’s say a stock has a beta of 0.50.… Read more