I was in the grocery store one day, and I met a man named Robert. He just retired as a college professor up north. Robert and his wife Rhonda moved to Florida to take advantage of the abundant sunshine, the Atlantic Ocean, and an excellent overall quality of life.
In talking to Robert, I learned that his retirement dream wasn’t going as well as he expected. Money was tight. During our conversation, he mentioned investing in dividend stocks to earn more income and help with their situation.
It got me thinking about if this was the best approach. Sure, dividends offer a safety net in consistent payouts, but it’s not as easy as just picking a stock that offers high yields.
Let’s explore some dividend pitfalls to avoid.
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