This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Embrace 'Dividend Aristocrats' for a Regal Retirement

NEW YORK (TheStreet) -- Some retirement planners embrace the "Age in Bonds" school of thought that advises investors to increase the amount of bonds owned as they age. For example, a twenty-year old should have 20% of their holdings in bonds. By contrast, someone who is 80 should have an 80% position in bonds. That is recommended so that the investor has retirement income from stable securities.

The best way to assure that there is steady income from secure retirement holdings is to not own any bonds at all and instead buy what are known as "Dividend Aristocrat" stocks, such as Coca-Cola (KO - Get Report), ExxonMobil (XOM) and Wal-Mart (WMT).

I believe that anything a bond can do, a Dividend Aristocrat can do much, much better. The primary appeal of a bond for retirement purposes is to supply a consistent stream of income. To become a Dividend Aristocrat, a publicly traded company must have increased its dividend for at least 25 consecutive years.

Just paying a dividend is a solid indicator from a company. It signals that the executive management of the company feels that it can reward the shareholders with a cash payment while still upholding their fiduciary duty. That is a strong sign when a company can continue to responsibly fund its commercial activities and still pay a dividend from the cash generated from the core business operations.

Must Read: Trends of the Future Favor Dividend Investing

To increase it every year for well over two decades is an even more bullish sign.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KO $44.80 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs