Once you retire, the way you interact with your money changes. For example, instead of earning money through work to cover your costs and invest a bit, you rely on your investments to provide the funds to cover those costs. That shift in your reality should drive a change in your investing strategy.
Dividend-paying stocks can play a role in getting you that money, but they are not the solution all by themselves. After all, dividends are not guaranteed payments, and when a company cuts its dividend, its stock price can drop as well. Still, the benefits they provide are often worth the risks, which can offer a compelling case for retirees to own them. With that in mind, here are five reasons to invest in dividend-paying stocks in retirement.