02-09-2017, 10:52 PM
(02-05-2017, 09:08 AM)Roadmap2Retire Wrote: @DivWatcher. Whatever way you slice it, dividend growth investing is essentially a "stock picking" strategy. As a dividend growth investor, we are betting that this one particular company can perform better than its peers and the argument taken to an extreme -- beat the market. Of course, we are not naive enough to think that, so we hedge our bets by diversifying our picks and mitigating our portfolio risks.
I personally dont think I am smart enough to beat the whole market and while dividend growth investing makes sense, index investing via funds also makes a lot of sense to me -- which is why I follow a a more multi-pronged approach. Part of my portfolio is in DG stocks and part of it in index funds -- so essentially I am hedging my investing strategy.
The last sentence in my previous post refers to a small subset of microcap companies that are not tracked by index funds. If there were indexes that could track it, I would do it...but until then, I am happy to pick stocks
R2R, I was not knocking your strategy. If you look at what I quoted -- and what I omitted -- it seemed more contradictory than complementary. Your last sentence does expound on your strategy and I understand the logic.
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“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