The idea of living entirely off dividends has a certain appeal. It sounds simple, safe, and elegant: build a big enough portfolio, collect the income, and never touch your principal. But while this dream fuels many retirement strategies, the math often doesn’t hold up. Between inflation, taxes, and market realities, the “dividends only” lifestyle is filled with hidden pitfalls. Let’s break down 10 myths about living on dividends that don’t stand up to scrutiny.
