Social Security isn’t going to disappear in the foreseeable future, but it’s probably not going to cover all your retirement expenses either. That’s worrisome for those counting on their checks to help them stay afloat.
There’s nothing else quite like Social Security out there, but there are other low-effort ways to boost your retirement income. Here’s one strategy worth considering.
If you’re new to investing or dividend stocks, you can always start out small and then increase your holdings over time as you gain more confidence. But if you plan to incorporate dividend stocks into your retirement plan, it definitely pays to start now.
Subscribe to our newsletter: The Daily Money delivers our top personal finance stories to your inbox
Dividend stocks can give you cash every year
Dividend stocks are stocks that pay shareholders money, usually quarterly. Companies that do this are often large, stable businesses that have extra cash on hand. They choose to pass this along to shareholders, and shareholders may reinvest that money or spend it as they choose.
At first glance, dividend stocks may not seem all that impressive because you usually only get a few cents to a few dollars per share that you own. If you invest $100 in a stock with a dividend yield of 4%, you’ll only receive $4 in dividends in a year. But if you invest a substantial part of your nest egg in dividend stocks, it can add up over time.
If you invest $100,000 in dividend stocks with an overall dividend yield of…
