AT&T give 7% dividend. VZ give 4.5% dividend. There should be good quality stocks which easily pay 3% dividend. If you do drip in 4 to 5 years it might become 4%-5%. But always there is a risk though
When government bond yields are below 1% from maturities from
0 to 10 years, there is no safe 4-5% return.
The price/earnings ratio (or its inverse, the earnings yield), is a better measure of stock valuation than the dividend yield. In a taxable account it is better to get capital gains because of stock buybacks than to get dividends.
The price/earnings ratio (or its inverse, the earnings yield), is a better measure of stock valuation than the dividend yield. In a taxable account it is better to get capital gains because of stock buybacks than to get dividends.