Starved for Income? Consider These 2 Dividend Stocks
Retirees are finding it harder to earn a decent return on their savings. For instance, yields on U.S. government bonds are hovering at their lowest levels in more than 50 years. That means income-dependent investors need to look elsewhere to supplement their cash flow in retirement.
Considering a dividend stock instead of a government bond provides a couple of benefits. For one, you can find stocks that pay dividend yields larger than the yields on government bonds. And second, you can find companies that increase their dividend payments over time -- compared to the static payment that a government bond provides.
It's important to remember that companies sometimes decrease or pause their dividend payments -- often when they find themselves in financial difficulty. Therefore, investing in dividend stocks may not be as safe as investing in government bonds.
Source Fool.com
