Switched from bonds to dividend stocks after my accountant showed me the numbers

I spent years thinking bonds were the safe bet for my retirement savings. But last March my accountant sat me down with a spreadsheet comparing a 10 year Treasury yield against a portfolio of utility dividend stocks. The difference was pretty stark. Over 20 years the dividend stocks would net me about $45,000 more in total returns, even with the market ups and downs. I made the switch in April and put $60,000 into three different utility companies. So far the dividends are coming in every quarter like clockwork, and the share prices actually went up a bit too. Has anyone else moved away from bonds to dividend stocks and regretted it or been happy with the change?

2 comments

2 Comments

anna_ross1928d ago

My bonds are probably crying into their quarterly statements right now.

hannahk1928d ago

My 2040 target date fund is down like 12% this year and I'm just trying not to look at it. Bonds are supposed to be the safe part of my portfolio, you know? But last month my corporate bond ETF dropped more than some of my tech stocks did. That's just wrong.