What is the Dividend Lifestyle?

The Dividend Lifestyle is a strategy for investors to produce passive income from dividends generated from a portfolio of high-quality dividend-paying stocks.  In other words, living off their interest.  Passive income can be generated by various asset classes including stocks, bonds, annuities, and real estate.  When it comes to the most cost-effective, predictable, and a way to accomplish passive income, particularly for retirement income, I believe it’s tough to beat the Dividend Lifestyle! 

A lot of folks ask me which stocks should they invest in to generate income.  Well when it comes to selecting the stocks or “portfolio construction” as we call it, I love defensive, consistent, and frankly boring stocks as they tend to be the most appropriate.  Think old-school blue chip names you grew up on.  Companies that you can not help but use every day. For example, we all need a cell phone and internet service.  Most of us in our daily lives are using plastics, chemicals, and gasoline.  And no matter what’s going on in the economy, millions of people across the world myself included, enjoy a nice cold Soda on the daily. 

These are the types of companies we look towards when designing and building Dividend Lifestyle portfolios.  Of course, there are other metrics we use besides daily use of the compani’s products, but to keep things simple, this is a great first step for the average do-it-yourself investor.  The Dividend Lifestyle can be a great way for almost any investor to build and produce income. 

Disclosure: Investing involves risk and you may incur a profit or loss regardless of strategy selected. Examples are for illustration purpose only and is not a recommendation. Dividends are not guaranteed and must be authorized by the company's board of directors.  Investments mentioned may not be suitable for all investors.