Daily Archives: October 26, 2015

Don’t treat Dividend Paying Stocks like Bonds! 3

A generation ago, income seeking investors looked to bonds for safe and stable income payments. This made sense as investors could easily get a safe yield of 8% or higher. But in todays low interest rate environment, bonds are not attractive for income seeking investors. This is especially true for retirees who traditionally tend to hold the majority of their portfolios in bonds as they need the income today. 10 year bond yields are currently yielding about 2%. This means that you need to have £2,000,000 invested just to generate an income of £40,000 a year. As you already know, this is a huge problem. Most retired investors don’t have […]