Tax-Efficient Dividend Portfolio For Retired Investors With Low-Risk Tolerance

May 02, 2025 7:45 AM ETSCHD, LVHD, DURA59 Comments
Cain Lee
5.63K Followers
(13min)

Summary

  • Crafting a dividend portfolio can provide reliable income for retirees, supplementing social security and ensuring financial stability with minimal market knowledge.
  • Allocating funds to diversified ETFs like SCHD, LVHD, and DURA ensures consistent monthly income, tax efficiency, and low volatility.
  • The portfolio aims for $42,000 in annual dividend income, with growth potential surpassing this target, ensuring retirees never touch the principal.
  • This strategy simplifies retirement planning, avoiding the pitfalls of the 4% withdrawal rule and ensuring sustainable, growing income.

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Dividends That Outlast Us

As I grow older, I've become the 'finance' guy in the family that everyone goes to when they have questions about their retirement accounts. Now that many of my family members are approaching the traditional retirement

This article was written by

5.63K Followers
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Related Stocks

SymbolLast Price% Chg
SCHD--
Schwab U.S. Dividend Equity ETF™
LVHD--
Franklin U.S. Low Volatility High Dividend Index ETF
DURA--
VanEck Durable High Dividend ETF

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