Quote (ZeaLORDeaL @ Feb 1 2024 10:41am)
That's a scary yield to expect any kind of growth from. 4% is a pretty reasonable yield to expect from a blue chip with growth, like a bank stock. But that's $333 a month off 100k.
But they could cut their dividend at any time. It's less often with an established bank, maybe, but the danger is always there and if your existence depends on dividend money coming in every month, it's extremely risky and stressful.
I bought General Electric about 7 years ago. Back then they had an attractive dividend and I thought that GE should be a safe bet. It was one of the oldest names on the New York stock exchange. I thought nothing could go wrong. But a few months in, they cut their dividend into the ground and the stock price also plummeted. So I was forced to hold the shares otherwise I would be selling at a loss. And I waited for 7 years. During this entire time, I got barely any money coming in. I would have starved if I had banked on this money supporting me.