**Retiring on Dividends: Avoid These 3 Common Dividend Traps**
Retiring on dividends requires balancing attractive yields with safety and growth to ensure sustainable, inflation-beating income over time. Many investors inadvertently hurt their portfolios by falling into common dividend traps. In this article, we detail how to avoid these pitfalls and, instead, build a sustainable dividend portfolio for retirement.
When aiming to retire on passive income generated from dividends, there are several important principles investors need to keep in mind. Most important of all is the ability to balance obtaining sufficient yield from your investments without compromising the safety and growth potential of your portfolio.
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### About the Author
This article was written by Samuel Smith, who has 45.42K followers. Samuel has a diverse background that includes roles as lead analyst and Vice President at several highly regarded dividend stock research firms. He also runs his own dividend investing YouTube channel.
Samuel is a Professional Engineer and Project Management Professional. He holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and a Master’s degree in Engineering from Texas A&M University, with a focus on applied mathematics and machine learning.
Samuel currently leads the High Yield Investor investing group, where he works alongside Jussi Askola and Paul R. Drake. Together, they focus on finding the right balance between safety, growth, yield, and value.
High Yield Investor offers real-money core, retirement, and international portfolios. The service also features regular trade alerts, educational content, and an active chat room for like-minded investors.
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### Perspective
> “Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal.
> But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal;
> for where your treasure is, there your heart will be also.
> For what will it profit a man if he gains the whole world and forfeits his soul?”
> — Jesus (Matthew 6:19-21; 16:26)
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### Analyst’s Disclosure
I/we have no stock, option, or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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### Seeking Alpha’s Disclosure
Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole.
Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser or investment bank. Our analysts are third-party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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