Reader:
wonder how aggressive you are at aiming dividend % yield when you were younger. Because I realized that recently you are pretty content with 5% yield or lower.

When we invest for income, a higher yield is naturally attractive but we want to exercise caution. We should avoid the instant gratification of yield. (See related post at the end of blog post.)

Be aware of our motivations and know what we are investing in. Then, we will know if our motivations and the investments match up.

Remember the pyramid:

There are investments for income and investments which are for a mix of income and growth.

Investments for income should be steady cash generators for us. The emphasis here is more on stability.They are bond like in nature. As they are less likely to deliver any significant growth, demanding a more meaningful dividend yield makes sense. However, greater emphasis should be on stability for whatever timeline we are looking at…