Analyzing Example Portfolios
1 / 4
Pros:
- Huge income stream from day one (~7–8% = $3,500–$4,000 a year).
- Attractive for retirees who want cash flow now.
- Familiar companies with a long dividend history.
Cons:
- Dividends can be cut (AT&T cut by 50% in 2022).
- Many holdings are in declining industries (tobacco, oil, REITs).
- Portfolio growth is weak, meaning income may not keep up with inflation.