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Author: JLC Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 9433  
Subject: Re: Monthly Income Date: 10/22/2012 9:25 AM
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"If I had $200,000 to put into dividend paying stocks to help surport my retirement, what stocks would I buy? Would my money be safe? Are the payouts safe.?"

You can look at Dividend Champions and Dividend Contenders. They have a history of increasing their dividends yearly for 25+ and 15+ years respectively.

Personally, I'd spread the 200k over 10-15 stocks.

Is the money and payout safe? Not necessarily. All you have to do is go back to 2008-09. A few companies that had long histories of payouts/increasing payouts either cut or stopped dividends. BAC and GE are two that come to mind. That's why it would be important to have your money in at least 10 stocks. If one craters it doesn't take down the whole portfolio as opposed to if you only had 5 stocks.

Another point about 2008-09. Many companies kept paying and increasing their dividends. Their prices might have taken a big hit but have since rebounded. Those that panicked and sold lost big money. Those that held tight and maybe added to positions did well.

If you're afraid of losing principle, you don't need to be in the stock market. You need to stay in CDs and accept the lower yield for security.

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