"those who leave their careers to enjoy a well-deserved retirement lose the benefits of a regular salary and their jobs, such as 401(k) matching and company-paid healthcare. In addition, many Baby Boomers use their retirement years to travel and enjoy the rewards they have worked hard to achieve throughout their lives."
"With a growing audience of savvy Baby Boomers seeking safe income ideas that deliver more than the 10-year Treasury bond's 4.1% bi-annual dividend, we have screened hundreds of stocks, looking for recurring dividend payouts and a degree of safety that allows for a good night's sleep."
"Since 1926, dividends have accounted for approximately 32% of the S&P 500's total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return."
Baby Boomers transitioning to retirement face a shift from relying on salary and employment benefits to needing consistent income streams. Dividend-paying stocks offer an attractive alternative to lower-yielding Treasury bonds, providing passive income that exceeds current 10-year Treasury rates of 4.1%. Well-established companies with long histories of reliable dividend payments deliver both income and growth potential with manageable risk. When combined with Social Security or pension income, these dividend streams create substantial financial security. Historically, dividends have contributed approximately 32% of S&P 500 returns since 1926, making them a critical component of total return alongside capital appreciation.
Read at 24/7 Wall St.
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