(12-29-2020, 08:53 PM)ChadR Wrote: Are preferred stocks allowed? Looking at a preferred stock that has a nice yield. Will get little to no rise in stock price, but the dividend will be a nice kicker. And that might keep me out of the negative this year.
Absolutely. That could be part of a winning strategy if you believe the market may end up flat or down for the year. An ETF or two is fine as well. The only important rules are diversify and at last 4 of 5 stocks have to pay a dividend at least 1% yield. Just trying to keep somebody from grabbing sketchy stocks that double for no particular reason. Didn't want to eliminate FANG with a high div yield requirement the short pick is just for fun if you care to select one. That's a trick a year in advance.
This has actually turned out to be harder than I thought the first few years. Very few ports have beaten the index, or even gotten very close.