Good question. Share price goes up and down and so do the dividends. As long as you dont borrow money to buy those shares and as long as the company dont go bust, you should not worry too much about price swings.

I have been building my shares portfolio over the years buying a few lots every now and then especially during bonus months. Some relatively cheap but stable stocks that also provide consistent and good dividends are Sing Post (about 6%) and Sabana Reits (about 8%). I am now deriving about 10K annually from these two stocks.

Others like Starhub, SPH and SATS also provide good and consistent payouts but cost more to acquire. Unlike savings in a bank, these stocks can appreciate in value or at the very least they keep up with inflation.

With a stable of these stocks in your portfolio, you can comfortably retire on their dividends. Bear in mind these investments (as long as the company is around) can be passed to your children for them to continue receiving the dividends when your time is up!

I have a few buddies who are happily receiving up to 50K per year just from dividends, and attending AGMs for the free meals!