What is a Dividend Yield?

04/01/2023 26 min Episodio 137
What is a Dividend Yield?

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Episode Synopsis

The extended downturn in the market has given investors a chance to re-evaluate their portfolio and rethink the strategy that best fits their needs in retirement. Dividend-paying stocks are often a popular choice, especially in times like these, because they can help offset poor returns in a down year. One criteria to use when searching for a strong company is the dividend yield, which is how much a company pays out in dividends each year relative to its stock price. Where we want to help you out on this episode is by putting into perspective how this yield can be helpful for retirees because some companies offer high growth potential but pay out low dividends while other companies don't grow as quickly but pay higher dividends. The dividend ratio can help you understand what to expect from your investments so Laura Stover, RFC® and Michael Wallin, CFP® will make sure you have a good grasp on what this yield is and why it matters for your retirement.  We think there should be more than one way to garner income in retirement and these dividends could provide a nice compliment to your other income options. We'll take you through some of the considerations to make when building your stock basket because dividend yield in conjunction with a total return approach can create a strong investment position for your retirement.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   Rate, Review and Subscribe to the Podcast: https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188   How to Connect: redefiningwealth.info lswealthmanagement.com Schedule a Review: https://redefiningwealth.info/schedule/   Timestamps (show notes):  2:45 – How dividends are often distributed. 5:13 – Understanding how dividend yields change based on stock price 8:14 – Putting together your stock basket 11:26 – Generating retirement income through dividends   14:06 – Top performing dividend yields 16:44 – How we structure a portfolio  

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