All of those sources of income are great but there's one additional source that can be very beneficial to the average investor, and that's the result of Dividend Growth Investing. It's the idea of buying stock in companies that pay monthly or quarterly dividends virtually forever. And the idea behind Dividend Growth Investing is finding those companies that will not only pay a dividend but will increase those dividends annually for years into the future. For me that means heading over to the list of Dividend Aristocrats and Dividend Kings. Those are two great places (for me, at least) to start because those lists include companies that have been paying and increasing dividends continually for 25 and 50 years, respectively.
This is exactly why Dividend Growth Investing is so important to anyone thinking about retirement. Risking everything on a monthly basis in order to capture the gains of a moving market is not an idea that most of us have when we think of retiring. Acquiring large capitalization companies, however, that pay increasing dividends can produce exactly the kind of retirement that everyone always dreams about.
It's an idea worth thinking about.