Comments on Dividend Growth Investor: Replacing dividend stocks sold

Generating a rising stream of dividend income is m...

2009-06-21T06:18:26.096-07:00

Generating a rising stream of dividend income is more important to me than trading in and out of stocks for capital gains. Although quick gains are nice, I prefer continuing payouts from a diversified portfolio of dividend stocks. Thank you for another wonderful article.

I really like that you cited your GE story and ate...

2009-06-17T07:28:11.937-07:00

I really like that you cited your GE story and ate crow on the fact that you sold at the wrong time, but maintaining a discipline comes first. That kind of structured investing theory--written in detail instead of blurted on TV--is what we need more of. Thanks

Manshu, It is the get rich quick mentality that l...

2009-06-05T00:40:03.687-07:00

Manshu,

It is the get rich quick mentality that leads to 95% of new investors losing the majority of their investment in the first 1-3 years of their investment experience.

Unless you are absolutely certain that a certain group of stocks would go up or down, I wouldn't concentrate my portfolio in less than 30 stocks.

Anon,

You are correct that generating a rising stream of dividend income is my primary goal. My secondary goal is generating capital gains in the process, which is important as well. Return of capital is important to me as well .

@Manshu -- his whole point is to create an income ...

2009-06-04T14:31:19.490-07:00

@Manshu -- his whole point is to create an income stream, not a huge capital gain....thus the large port... it seems more important to him to protect the income stream... I think he is dead on correct if that is his goal.

With 40 stocks, I guess you are invested equally a...

2009-06-04T09:10:39.732-07:00

With 40 stocks, I guess you are invested equally and that translates into just 2.5% per stock. You may be protecting yourself against big profits but then I guess there won't be any significant gains in the portfolio ever also.

DJ, Glad to hear you enjoyed this post. I own alm...

2009-06-04T00:58:14.286-07:00

DJ,

Glad to hear you enjoyed this post. I own almost 40 stocks. I have found it very difficult to diversify too much, since I might end up sacrificing quality if I were to own say 100 individual issues.
I wouldn't own less than 30 however. With a portfolio of 10 stocks, if you have 2 general electrics your income would suffer more than if you have 3 general electrics in a 30 stock portfolio.

Very insightful post and great analysis. What do y...

2009-06-03T20:19:40.225-07:00

Very insightful post and great analysis. What do you consider the ideal number of stocks in a dividend portfolio and how many dividend stocks do you have in your own portfolio? I know you mentioned 40 in your post. Someone like Dave Van Knapp seems to advocate a smaller portfolio (10-15 stocks). I personally like the protection/diversification of having more stocks and bringing down the total portfolio percentage of a given stock. Thanks for the blog and keep up the good work. I've learned a lot from reading your work.