10-08-2014, 11:14 AM
(10-08-2014, 10:56 AM)Joey Batz Wrote: Does anybody recommend investing in an ETF or two as a hedge against their ability to pick dividend stocks?
Not me. The years of management fees and limited visibility and control argue against it for me. Surely you could come up with a list of 30 companies that, if held for the long term such as the next 20 years, will do just fine. I could come up with a list of 10 without even thinking about it.
Now, if you just wanted to buy a couple ETF's and ignore your portfolio for the rest of your life, then maybe that's the way to go. Just because an ETF holds potentially hundreds of stocks doesn't mean you're buying safety nor a reliable dividend stream.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan