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Sinking money into stocks that pay dividends can be an important element of any retirement portfolio - but investors could "supercharge" their income in later life if they buy into these shares early on, it has been claimed.
Financial advice site the Motley Fool said at present, the majority of those holding dividend-paying stocks are over 50, with data from the Internal Revenue Service (IRS) showing 59 per cent of 2004 tax returns showing qualified dividends came from this age group.
By contrast, the IRS data shows only 15 per cent of returns with qualified dividends belong to people under 35 years old.
Yet, the site said, dividend stocks are best held as long-term investments, favoring those who buy-in early.
Furthermore, rather than waiting until retirement to buy dividend shares, individuals who invest early can rely on their income from working and reinvest their dividends in order to "supercharge" their returns.
The site noted that when scouting for potential dividend paying stocks, investors should look for "strong, stable companies" with a track record of making "regular and increasing" dividend payouts.
Financial planner Deborah Levenson recently told Boston.com that making additional investments is often the first step to ensuring money is put aside for retirement.
In Focus: Dividend stocks can "supercharge" retirement
Sinking money into stocks that pay dividends can be an important element of any retirement portfolio - but investors could "supercharge" their income in later life if they buy into these shares early on, it has been claimed. Financial advice site the Motley Fool said at present, the majority of those holding dividend-paying stocks are over 50, with data from the Internal Revenue Service (IRS) showing 59 per cent of 2004 tax returns showing qualified dividends came from this age group.
By contrast, the IRS data shows only 15 per cent of returns with qualified dividends belong to people under 35 years old.
Yet, the site said, dividend stocks are best held as long-term investments, favoring those who buy-in early.
Furthermore, rather than waiting until retirement to buy dividend shares, individuals who invest early can rely on their income from working and reinvest their dividends in order to "supercharge" their returns.
The site noted that when scouting for potential dividend paying stocks, investors should look for "strong, stable companies" with a track record of making "regular and increasing" dividend payouts.
Financial planner Deborah Levenson recently told Boston.com that making additional investments is often the first step to ensuring money is put aside for retirement.
