Should I focus on dividends for income, or just sell shares as needed?

Both can fund your spending, and the math often favors flexibility over a dividend-only approach. A total-return strategy, where you hold a diversified portfolio and sell a small amount of shares when you need cash, lets you control exactly how much you take and when, and it can be more tax-efficient because you only realize gains you choose. A dividend-focused strategy forces income out on the company's schedule and taxes it whether you need the money or not. Dividends feel safer because you aren't selling shares, but a dividend is not free money, the stock price drops by roughly the payout amount. Many researchers, including Vanguard, argue total return is the sounder framework. Decide based on taxes and behavior, not the comfort of not touching principal.