What if you don’t have decades to let dividends compound? For retirees, the math changes—but options still exist. A realistic look at yield vs. growth, and how income can still grow in your 60s, 70s, and beyond. One dividend at a time.
Starwood Property Trust is a good example of a high yield stock whose dividend hasn't been raised since 2014. The company is a mREIT. It provides financing (mortgages) to other REITs that own property.
The dividend yield is a bit over 9% as I write this comment. It has oscillated between 7% and 11% over the past 10 years. Let's not count the massive spike during the COVID years when everything was tanking.
For those who feel they don't have a long runway, this may look like an attractive stock to purchase for an income stream. Just know that whatever income you get is whatever income you will have. It might as well be a bond. The only way this could turn into something that looks like a dividend grower is to spend way less than the income this stock provides and reinvest that amount. Or, if you have a large sum of cash, like $5M, then 9% will give you $450k. You ought to be able to live a really nice life on that kind of money and have plenty left over to reinvest into more stock. Otherwise, it's "money in" and "money out".
Starwood Property Trust is a good example of a high yield stock whose dividend hasn't been raised since 2014. The company is a mREIT. It provides financing (mortgages) to other REITs that own property.
The dividend yield is a bit over 9% as I write this comment. It has oscillated between 7% and 11% over the past 10 years. Let's not count the massive spike during the COVID years when everything was tanking.
For those who feel they don't have a long runway, this may look like an attractive stock to purchase for an income stream. Just know that whatever income you get is whatever income you will have. It might as well be a bond. The only way this could turn into something that looks like a dividend grower is to spend way less than the income this stock provides and reinvest that amount. Or, if you have a large sum of cash, like $5M, then 9% will give you $450k. You ought to be able to live a really nice life on that kind of money and have plenty left over to reinvest into more stock. Otherwise, it's "money in" and "money out".
Yep, high-yield, low growth isn't necessarily bad. You just have to know what you're buying and make sure that it fits your goals.