retirement

5 sound investment strategies for retirees

Dividends offer income, growth potential
Next
6 of 7
Back
text

PNC Wealth Management's Jennings likes dividend-paying stocks because "cash flow is important to many investors right now." They can provide a steady flow of income with potential for growth as well. You can buy individual stocks that pay dividends or mutual funds, or purchase exchange-traded funds that invest in dividend-paying stocks.

The only potential problem with buying individual stocks that pay dividends is that the company paying the dividend could decide to cut the dividend, as BP recently did. In that case, "you want to be very well diversified," Jennings says, "so if you're unfortunate enough to experience a dividend cut, it won't impact you too significantly." Buying a dividend-oriented mutual fund or exchange-traded fund, instead of individual stocks, helps to diversify a conservative investment portfolio.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Social Security: Rewards for waiting

Social Security is looking at schemes to make you wait past 62 to claim. Do you think any of these ideas would work?  ... Read more

advertisement
Partner Center
advertisement

Connect with us