I'm a couple years older but have put together a
portfolio of dividend stocks over the past three years similar in size and income to what you have.
Some of these are
list of dividend stocks by industry, while others cover a variety of industries to help you in your asset diversification.
We plan to continue to track the market value
of our dividend stock holdings as well as the annual income of our dividend growth stock portfolio throughout time.
Since I started invested in late 2008 when the stock market was way down
most of my dividend stocks have had some pretty big increases in price.
I just don't think the case exists for the widely held superiority
of dividend stocks as compared to other stock investing approaches.
When the share
price of a dividend stock decreases, the yield increases, so this usually tends to create upward pressure on the stock and more of a balance than other stocks.
While in some historical periods various
baskets of dividend stocks have performed marginally better than a broader stock portfolio, dividends are not the cause of this slight out performance.
My portfolio is mostly made
up of dividend stocks but I still want to have gold in it for insurance purposes.
There are different approaches to dividend investing, and it's important to understand what different
kinds of dividend stocks have to offer.
If the study was done only with dividend paying stocks, the results might have been even more in
favor of dividend stocks.
Its investment philosophy stresses the track
records of dividend stocks that have established long histories of consistently growing their payouts over time.
Thus, while dividend stocks may have slightly out performed the broader market in the past, the recent
popularity of dividend stocks may have ended that story.
While yield is an essential
component of any dividend stock, dividend growth and the sustainability of dividends should also be high priorities when selecting dividend stocks.
Regular readers know that I am fussy about my
choice of dividend stocks and I like to enhance yield by selling near - term calls against the position.
We've covered a lot of the important
elements of dividend stock investing here in the last few months, from the importance of buying at low valuations to the benefits of increasing dividends.
The remaining 65 % will go towards quality dividend paying stocks with a strong history of earnings and dividend growth, mostly following my current
method of dividend stock selection.
I will, however, continue to write about a wide
variety of dividend stocks - many of which are worthy investments even if they aren't included in the portfolio.
Although I've written in the past about different categories of stocks and portfolio diversification, I haven't spent much time on the
question of dividend stocks.