Investing in Growth and Income stocks provides a great way to beat inflation while a paying you dividends each quarter to supplement your retirement along with pensions, investments, or other money streams. Reasons to Invest in Growth and Income stocks:
- You’re a Dividend Growth Investor
It’s a great way to maximize total returns over time. It’s a great strategy for long term investor to provide for a comfortable retirement.
2. Dividend Growth Stocks Outperform the Market Over Time
Dividend reinvestment over time is very important to overall returns. So, reinvesting dividends over the years allowing dollar cost averaging of additional shares provides a nice income stream during retirement.
3. Dividend Growth Stocks are Less Volatile Over Time
They are usually considered a Dividend Aristocrat in they tend to outperform the market during periods of a bear market but do well when markets are performing strongly. They are a company who has raised dividends for at least 25 consecutive years.
4. Must be a Disciplined Investor
Dividend growth investors tend to avoid knee jerk reactions like selling during earnings miss or market correction. Dividend growth investors are being paid to wait for the company to execute its growth plans and stick to a “buy and hold” mentality.
5. Dividend Growth Stocks Provide Income Stream for Retirement
During retirement Dividend Growth Stocks provide income along with pensions, social security, or other income streams.
In conclusion, following the above 5 steps will have you on your way to be a disciplined Dividend Growth Investor and provide an additional income stream during retirement. It’s good Money Sense.