Key Takeaways
- The S&P 500’s average dividend yield is below 2%.
- That’s a problem for retirees relying on dividend income who may want to withdraw from retirement funds at the recommended 4% to 4.70% annually.
- Specialized investments like BDCs, midstream energy companies, and closed-end funds can yield 9% or higher, though none are risk-free.
- The highest-yielding investments typically require understanding specific market niches and tax implications.
Many dividend-focused investors are getting modest yields when they could be considering higher-income investments. While the S&P 500 Index‘s average dividend yield languishes below 2%—”much lower than historical dividend yields,” Sahil Vakil, a financial advisor and founder of MYRA, told…
