38Chevy454
Thinks s/he gets paid by the post
Maybe I view this too simplistically. If you have X amount of assets, and you get Y percent income off them, you are still living off Y percent. It does not really matter what is used to make up the Y, except for the fact you are getting dividends vs increase in share price. I would fall into the total return thought process, if I understand that correctly.
If the X assets yield Y percent of income, and the value of X after that year is equal or more than the start of the year, then you sustain the withdrawal rate essentially forever - assuming that returns are fairly consistent and conservative.
While share price can be more visible as share value drops, dividends can also be reduced. I guess I do not see any real difference. In the end you are striving to get Y percent income off the X assets, while having that Y percent last forever such that the basic X amount of principle stays equal or increases.
If the X assets yield Y percent of income, and the value of X after that year is equal or more than the start of the year, then you sustain the withdrawal rate essentially forever - assuming that returns are fairly consistent and conservative.
While share price can be more visible as share value drops, dividends can also be reduced. I guess I do not see any real difference. In the end you are striving to get Y percent income off the X assets, while having that Y percent last forever such that the basic X amount of principle stays equal or increases.