The Quest for Yield: Finding Dividends

Every investor should be interested in dividends. This article describes how a dividend strategy fits into a total return portfolio with an emphasis on retirement needs. It is the third installment of my "Yield Quest" series. In Part 1 of this series I described the total return concept. In Part 2 I outlined the key allocation strategies. My approach is a bit different from most authors emphasizing income investments. I believe that fear has created an over-emphasis on fixed income. This has pushed many investors into doing the wrong thing at the wrong time. I recommend that retirement investors should remain open to an approach emphasizing total returns. If the income stream is not enough, it is OK to sell some stock to meet current income needs -- as long as you have a portfolio that includes growth.... Read more