Are Dividends Just for the Rich?
August 30, 2011 at 13:20 PM EDT
In response to last week’s column about dividend stocks vs. Treasuries, a reader named John wrote in to say, “If you have a couple million dollars, higher-priced dividend stocks make sense. For the smaller investor, not. $100,000 is not going to give you any meaningful dividend income.” This is something I hear often, though through a couple of different types of arguments. So today, I want to address the basic idea that dividend stocks are really only for the rich. We’ll start with John’s point … It is true that a $100,000 portfolio like the one I’m managing for my father will not be able to produce enough income for anyone to live on comfortably. Unless your idea . . . → Read More: Are Dividends Just for the Rich?