3 Monster Dividend Stocks That Each Yield More Than 6%
There's a well-known principle in retirement planning called the 4% rule. At its core, the strategy is focused on withdrawing 4% of your savings starting the first year in retirement. One way to supplement income in retirement and make sure that withdrawals don't deplete the nest egg too quickly is to invest in dividend stocks.
Dividend stocks generate income without the need to sell assets. But as of June, the S&P 500 dividend yield was only 1.7%. In contrast, Dow Inc. (NYSE: DOW), LyondellBasell Industries (NYSE: LYB), and Kinder Morgan (NYSE: KMI) each yield above 6%.
The drawback of these three companies is that they generally grow earnings at a slower rate than the S&P 500. However, risk-averse investors who are more focused on capital preservation than capital appreciation may prefer a higher yield and lower growth. Here's why Dow, LyondellBasell, and Kinder Morgan are three excellent income stocks worth buying now.
Source Fool.com
