$41,200 in Income on a $550k Nest Egg: Here’s How

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The Contrary Investing Report > NYSE:PPG

It’s a question I get from investors all the time: “Should I take my dividends in cash or reinvest them through a dividend reinvestment plan (DRIP)?”

My answer: unless you want your cash sitting in your account earning zero, your best bet is to reinvest any dividend money you don’t need to pay your bills.

But we don’t want to practice “buy and hope” investing, either, whether we do it through obsolete DRIPs or the old-fashioned way.

When I say “buy and hope,” I mean putting your cash into household names like the so-called Dividend Aristocrats and “hoping” for higher stock prices when you cash out in retirement.… Read more

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Wall Street’s pundits love touting the Dividend Aristocrats as the crème de la crème of the income world. I get it. The ability to not only pay, but increase, corporate distributions uninterrupted for two-and-a-half decades is an impressive feat that clearly illustrates financial fortitude and sound fiscal management.

But that doesn’t make all Dividend Aristocrats buys. And in fact, five of them – which I will highlight for you today – are downright dreadful long-term dividend holdings.

When investors think of dangerous dividends, they tend to think of companies whose payouts could evaporate overnight. As well they should – nothing can derail your retirement plans faster than watching the dividends you rely on disappear in a flash.…
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