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Why You Should Not Invest in Dividend Kings or Dividend Aristocrats
If you follow my Facebook page — Retirement Guru — you will know that I am a big advocate of dividend investing as a source for retirement income. However, unlike most investors, I believe that we need to take calculated risk to maximize the returns on our capital. Even during our retirement.
Hence, I believe that we should not invest in Dividend Kings and Aristocrats. For me, the logic is simple. While Dividend Kings and Dividend Aristocrats have a long history of increasing and never cutting their dividends, their average returns are between the range of 1.5% and 4%. At these rates, they are barely keeping up with inflation. Instead, I believe in investing in high-yield dividend paying ETFs that have annual dividends in excess of 20% with some as high as 50%. By carefully investing in high-yield dividend paying ETFs, I can earn as much as 10 times what I would earn from investing in Dividend Kings and Aristocrats in a given year.
Now before you call the dogs on me, hear me out ….
Myth about Dividend Kings and Dividend Aristocrats
The key premise of investing in Dividend Kings and Dividend Aristocrats is that they are…
