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To: SeekAndFind

I am getting 4% dividends on my stock portfolio right now.

While it is possible that some companies may cut dividends for various reasons, in general they are more likely to increase. So it is fairly safe to spend your income, provided you keep your principal untouched.


4 posted on 03/28/2011 12:19:52 PM PDT by proxy_user
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To: proxy_user

The principal has to grow to keep up with inflation. They are not saying return of 4 or 5% it is pulling 4 to 5% of what is in the account.

Obama and private banking cartel known as The Fed are wiping out the dollar and Americans savings.


12 posted on 03/28/2011 12:35:20 PM PDT by Frantzie (HD TV - Total Brain-washing now in High Def. 3-D Coming soon)
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To: proxy_user

Your big risk is if your stocks go down significantly. You can lose more of the principal in one year than you make in 5 years in dividends. And make that 5yrs in 8 years, because dividends are taxed as you get them, while capital losses offset income up to only $3000 a year.


43 posted on 03/28/2011 5:24:35 PM PDT by expatpat
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