If you bought 1000 Phoenix group (LON:PHNX) shares now for £5.15 with yield of 10.2% - if you assume the dividend never goes up (it does) then your shares would be free after 7 years.
*** Correction**** From the 8th year onwards you would have an income of over £1K per year (compounded and growing) which if you bought an annuity would cost you £20K to achieve.
Additional bonus when you die that asset would be passed onto your children unlike an annuity.
Obviously this assumes the company continues to pay a dividend, but you would have hopefully capital gain as well.
Isn't this the ultimate share for those within 5-10 years of retirement?
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