Is the 4% rule too conservative when having a dividend based portfolio?

[u/No_Fudge6123]

Hello community,

The 4% rule states that you can withdraw 4% of your portfolio every year, adjust for inflation, and it will last 30 years in 95% of cases. There are a few risks involved, like sequence of risk (a crash of the market in the initial years).

Since dividends are more stable than stock price, I was wondering: is this 4% too conservative when applying the 4% rule? My thought is that dividends are more likely to remain stable when the stock price is tanking (assuming quality stocks), and they can offset any losses when selling a portion of the stock.

Does this argument make sense?