Dividend Strategy Beats 4% Rule by Up to $430K Over 20 Years
Published on 6/9/2026

AI Summary
Summarized by AI from the source belowA dividend strategy yielding 3.8% can outperform the 4% withdrawal rule by $430,000 over 20 years on a $1 million portfolio. Initially generating about $38,000 annually, this method does not necessitate selling shares. Underlying factors include a projected 7% annual growth in dividends, potentially reaching $147,000 by year 20. Market dynamics show that while S&P 500 dividends fell only 8% during the 2008-09 crisis, share prices decreased by 57%, indicating the resilience of dividend income.
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