10-27-2014, 07:40 AM
(10-25-2014, 09:58 AM)Main Street Stock Investor Wrote: Benjamin,
Do you currently hold stock positions in the energy sector? What is your target % allocation for energy sector stocks in your portfolio? CVX, XOM, and COP are all excellent choices to hold as core positions in the energy sector of a portfolio. I'm going from memory, but I believe all 3 stocks are Dividend Achievers. Other post correctly point out that there are differences in current stats, however, overall performance of these 3 stocks will be variable with time. diversification helps eliminate single company risk (as in BP Macando, and Exxon Valdez). I would suggest that you set your target to own either 2 or 3 energy stocks based on your research, and build positions in those stocks in a methodical way by purchasing partial positions and knowing what you want for a final position.
From a portfolio management perspective, I stay diversified across all 10 GICS sectors. In most cases I hold at least 3 Dividend Achievers or Dividend Aristocrats in each sector, Telecom being the exception (only T is a dividend achiever).
M$$I
I am newer to dividend investing, so I am a long way off from a large, diversified portfolio. Since I am already over weight in the oil sector, I decided to continue the diversification of my portfolio this month.