No Free Cake

Dividend Stocks vs. Fixed Income: Which Is Better for Retirement?

"Fixed income securities guarantee a return of your investment some time in the future, whereas stocks don’t provide that."

Not true. You could argue that US Treasuries and US agency bonds "guarantee" a return but that's certainly not true for other fixed income securities.

I'd also take exception to your statement of "Stocks are great vehicles to own during average and high inflationary periods, ...".

You need only look at the US in the 1970's, which is the most recent period of high inflation, to realize that equities performed poorly during high inflation. I agree that modest inflation doesn't impair equities.

Abbot Laboratories: A Healthy Dividend Aristocrat

DGI, selling a covered call doesn't limit your upside. If the stock gets called away, if you like it just buy it again. If it was sold at a profit there's no wash sale issues.

Of course, there may be some cap gains tax due on the sale and the commissions to rebuy. Those may be offset by the extra earnings from the (periodic and regular) covered calls.

81 Dividend Growers to Consider

David, can you help a novice with some of these terms?

You said in an earlier comment in this thread that "Coverage" was essentially "Payout Ratio". I understand payout ratio as Dividends / Earnings.

You just said Coverage and ROE are both good to use because one uses cash and the other a GAAP look. Fair enough.

But, if it's important to have a cash and GAAP view, then how can Coverage be essentially the same as Payout Ratio? Isn't one GAAP oriented while the other cash?