In my dividend investing I
focus a lot on diversification. Proper diversification means that an investor
owns at least 30 individual stocks, representative of as many of the ten
Standard and Poors sectors as possible. Proper diversification also means that
investors do not simply purchase stocks in order to diversify their risk
however. It means to invest in a diverse number of businesses with favorable
economics, which are attractively priced and which also have bright long term
prospects. Proper diversification will add an extra layer of protection for an
investor’s portfolio when unforeseen events such as financial crises, oil
spills and lawsuits affect otherwise stable and profitable dividend paying
- Dividend Portfolios – concentrate or diversify?
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- Buy and Hold means Buy and Monitor