It is because of this characteristic that many advisors will recommend you reduce the proportion
of stocks in your portfolio as you near your financial objective.
I bought those three companies for my portfolio, and funded it by selling the four
stocks in my portfolio with the lowest expected returns.
Returns of
individual stocks in the portfolio followed the typical pattern for successful quarters — more winners than losers, and gains of greater magnitude than losses.
I have a number of
other stocks in my portfolio that have no analyst coverage, so whatever expectation their is for the company is ill - defined.
However, with 38 high quality dividend
growth stocks in my portfolio my main concern remains a stable, predictable and growing dividend pay - out.
Investors who subscribe to growth at a reasonable price invest in growth companies but attempt to exclude
putting stocks in the portfolio that are extremely over valued.
In addition to dividends, there may also be distributions of capital gains, due to the fund selling shares of
stocks in its portfolio at a profit.
Investors who wish to generate additional income while waiting for long term price appreciation of a
particular stock in their portfolio might want to consider selling covered calls.