I have never invested in funds that are focused on paying dividends, I stick to S&P 500 and other broad index funds. However as a start thinking about retiring one day I’d like to be a little more conservative keep my principal and invest in something that pays dividends. So I started to do a little bit of due diligence, full disclosure I have about 20+ years till retirement. So what I was looking into is ones that pay dividends, I ran across $GOF. It’s about $20/share and pays monthly dividends of $0.182.
My question is: if you invest $1MM in GOF you’ll have 50,000 share and generate $9,100 (50,000 x 0.182) per month. The price is stable and expense ratio is low. Is this correct?
With my S&P 500 investments and my tenure till retirement, I can expect liberally a 10% per year return. And the way I’m investing, I could assume (hypothetical) $5MM by the time I retire. Using the GOF example I’d able to generate ~$45,000 per month.... this just seems unreal
Submitted February 24, 2021 at 11:18PM by lecherofahq https://ift.tt/3qNm0iR
