QQQ - The Dividends Don't Matter In Retirement Either

2024-07-16 14:29:39 ET

Summary

• Dividends don't matter in the accumulation stage, focus on total return for greater retirement income.
• Dividends are a removal of value, not a creator of value, and carry equal risk as share sales in my view.
• In retirement, total return and risk level are crucial for portfolio success, not the presence of dividends.
• The dividends don't matter in retirement, either.

I recently posted on how the dividends don't matter in the accumulation stage. One should simply go for a greater total return. After all, 'more money is more better' as I like to write. More money will create greater retirement income. Even if you are under the impression that there is value in the dividend in retirement, you'd still want more money to buy more dividends. That said, there is no value in the dividend when we create retirement income. A share sale and a dividend of the same value are equal.

Here's why the dividends don't matter .

Keep in mind that a dividend does not create value. A dividend is the permanent removal of value from your stock holding. In simple math with respect to a $1 dividend payment on a $20 stock....

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