I am a firm believer that asset allocation plays a significant part in a portfolio’s long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.
38 Dividend Securities For A Well-Rounded Asset Allocation
3 Styles Of Sucessful Dividend Investing
There are certainly many ways to categorize the different styles of investing in dividend stocks, including yield, risk, growth, etc. An investment strategy based on any of these could be successful, if implemented within the framework well-crafted plan. Over the years, I have found that most dividend investing styles fall into one of the three major categories listed below:
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9 Small/Mid-Cap Dividend Stocks Answering The Call
I have set aside 15% in my asset allocation for small and mid-cap equities. Generally, smaller cap securities are more volatile, but often offer a higher rate of return over the long-term. Most of this allocation is covered by small cap mutual funds in my 401(k).
High-Yield Dividend Stocks: A Safer Approach
When people learn that I am an income investor, the reaction is often a desire to discuss high-yield investments. The uninitiated commonly confuse income investing with high-yield investing. The two are not the same.
High Yield, High Risk Dividend Stocks
It is not unusual after I publish a list of stocks to get a comment or two asking why those stocks and not these stocks. Often the real thrust of the question is why buy those low yield stocks when you can buy these high yield stocks. The answer involves risk and its management.
Are REITs and Utilities Good Dividend Investments?
Dividend stocks. When you hear those two words what do you think of? Many people think of widows and orphans, along with their stereotypical investment in utility stocks. While others may think of maximizing income by finding the highest yielding stocks available like Real Estate Investment Trusts (REITs). But are utilities and REITs really good dividend investments?
Inegrys Energy Group (TEG): Things That Make You Go Hmmm…
Utilities may not be the perfect dividend stock, but they should be one of the more predictible ones. This is not always the case. On Wednesday February 25th, Inegrys Energy Group (TEG) issued their earnings release after the market closed. In the release they forecast 2009 operating earnings of $2.51 to $2.66 a share, which unfavorably compared to the street estimate of $3.77/share. For the fourth quarter, TEG’s earnings of $0.30/share fell well short of the street’s estimate of $1.38/share. The market was not pleased. Yesterday (Feb. 26th), TEG’s shares fell $9.77/share or 26.68%. Why?
Utilities For A Well-Rounded Dividend Investment Portfolio
A well-rounded dividend investment portfolio just doesn’t happen by accident. As noted in Charlie Munger’s 10 Rules for Investment Success, “Allocate assets wisely: Proper allocation of capital is an investor’s No. 1 job.” It is human nature to want to jump on the what’s hot bandwagon and ignore what is considered boring, like utilities.









Increasing Dividend Yield Part I: Utilities
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