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Why High Dividend Stocks Could Undermine Your Retirement Strategy

Why High Dividend Stocks Could Undermine Your Retirement Strategy

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Takeaways:

  1. Dividends should not be perceived as free money, as they merely represent a return of one's own investment capital.
  2. Investors often mistakenly chase high dividend yields, neglecting the importance of total return in their investment strategies.
  3. The reliance on high dividend stocks can lead to significant financial losses, particularly when dividends are cut unexpectedly.
  4. A well-structured retirement strategy should emphasize total return rather than solely focusing on dividend income.

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