#income-investing

#income-investing

Turning 70 used to be the finish line for portfolio building, but with life expectancy stretching toward the eighties and healthcare inflation outpacing the CPI, the real race is making sure the checks outlive you rather than the other way around. The sweet spot for soon-to-be retirees is no longer the 2% yield. The economy is volatile, and trade policies are being changed rapidly. And there's a risk that the next administration will undo these changes and spark a decades-long

I have been dividend investing for seven years, and since I have a longer timeframe before considering retirement, I prioritize dividend growth stocks. These stocks pay out dividends each quarter and grow their payouts faster than the average company. It's the high dividend growth rate and impressive long-term returns that make dividend growth stocks appealing. These are some of the income machines that are boosting my cash flow and powering high long-term returns.

"Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs' dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties," says REIT.com.

Exchange-traded funds are the go-to for conservative investors who have a long timeframe. The yield you get today is very generous compared to just five years ago. Yet, it may not be the wisest idea to have your portfolio concentrated entirely in ETFs that yield in the low single digits. Having some higher-yielding ETFs can give you extra income with negligible added risk if you hold them for the long run.