Many investors, particularly retirees, look to dividends for passive income. Christine Benz, Morningstar Director of Personal Finance and Retirement Planning, points out that dividends are a bird in the hand. It’s often easier to just take the cash from the dividend than it is to sell shares in order to meet your living expenses.
Investors relying on dividends in retirement should look beyond the yield. Dividend reliability and share price stability are just as important, and the potential...