09-19-2015, 10:46 PM
(09-19-2015, 01:18 PM)Kerim Wrote:(09-18-2015, 10:59 AM)EricL Wrote: I wrote an article covering diversification of holdings in the portfolio. I was surprised to see how much of my dividend income is being produced by REIT's and utilities.
"Dividend Growth Diversification: A Deeper Look At MY DGI Portfolio"
Nice. I have the same experience -- those high-yielders really carry a lot of water. Even though I understand the arguments for low-yield, high dividend growth stocks, I am often very swayed by the higher starting yields. It is really hard to predict the future, and the crossover point for the low-yielders is sometimes far out enough that it feels pretty darned speculative to me.
I do like to have some high growth companies in the portfolio, but I've found myself gravitating to the higher yielding companies. Investments that pay a safe 5%+ yield just gives so much margin for error in the long run. Compounding at that level, especially when you can find those ones that annually raise the dividend on top of it, really adds up quickly.