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You can achieve 4% investing in large cap dividend payers. The dividends alone can be 4%, and any price appreciation on top of that is gravy. Though of course
by nicholas73 14y ago
You can achieve 4% investing in large cap dividend payers. The dividends alone can be 4%, and any price appreciation on top of that is gravy. Though of course, you have to diversify and thus put an immense amount of research in many companies.
- BenoitEssiambre 14y agoYeah if you are smart with your money you can still get close to 4% nominal which is about 2% real (inflation adjusted) and is what I used in my calculations. The previous generation used to be able to get 6% to 7% nominal.
- chrisbaus 14y agoMy point is the Fed is significantly screwing around with the debt market which hurting anyone that invests in low risk loans (Treasuries, savings accounts, CDs, etc.). This doesn't have to be the case. Sure you might be "smart" and figure out how to get a 6% return, but reward for that 6% vs the risk is also lowered by fed activity.
- chrisbaus 14y agoInvesting in large cap dividend stocks is not a "risk free" investment. Not that treasuries are either, but there is a built in assumption that the treasury will not default. If I adjusted the returns for taxes the situation would look much worse.