Dividend Strategy

When you retire, a common concern is that your income will decrease and reduce your standard of living. The goal is to have enough money to cover your expenses for the rest of your life, however long that may be. We believe a portfolio that focuses on dividend income and growth is very important during retirement versus a portfolio which only focuses on growth.

Dividend Strategy Example: Real Estate
We believe investing in growth investments is comparable to buying an undeveloped piece of land. It may be in a great location with a lot of potential, but you'll need to wait for it to appreciate to realize any gain. However, if you need any money from the undeveloped land while you are waiting for it to appreciate, you'll need to sell off some of the land to generate the cash. The timing of when the funds are needed may or may not be at the ideal time to sell the real estate. If the real estate market has gone down, you are forced to sell at a loss and fees may be incurred. On the other hand a Dividend Strategy can be compared to purchasing an apartment building. Each month you collect rent (income) from the building and you do not need to be as concerned about the short-term fluctuations in the value of your apartment building. While you want the building to appreciate over time, your income is not dependent on the appreciation. 

Retirees we work with are at a stage in their lives where they're typically more comfortable owning the apartment building with its predictable income stream rather than the undeveloped land hoping for growth, as an example of one dividend strategy.

Utilizing a well-constructed, diversified, income portfolio may be able to provide retiree’s many of the advantages they seek, such as the potential for reasonable upside during good markets, defensive characteristics in poor markets, and the potential of continued earning power during sideways markets. By implementing a dividend strategy you're no longer focused on the value of the portfolio, instead you're focused on what amount of consistent income can my assets potentially provide me for the rest of my life.

Our process is designed to help our clients accumulate wealth for retirement and make appropriate decisions relative to retirement while being informed of their specific risks. Our goal is to help them generate an income stream while striving to preserve the assets they've worked so hard to accumulate. Our primary investment objective is not to "beat the market," but rather construct a customized portfolio to potentially produce the income you need to maintain your wealth over the course of your retirement years.


Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.