While no retirement strategy is foolproof, a variety of studies suggest that a diversified portfolio paired with a 4% starting withdrawal rate (adjusted annually for inflation) has historically had a high probability of making your savings last.
Retirees often struggle with how to generate that income. Economically speaking, selling shares to realize capital gains and receiving dividends from stocks you own are very similar. After all, a company's share price generally falls by the amount of the dividend on the ex-dividend date.
