Money and Finance
No I'm not asking you to divulge your body weight, although if that will help you with any weight loss goals you have feel free to do so. The weight I'm referring to has to do with your portfolio. I think we all understand the importance of diversification, especially for those looking to live off the dividends your portfolio churns out. You don't want to be left owning a few companies or a be highly concentrated in one segment of the economy as we all know how that worked out for those that were heavily invested in the finance sector during 2008/9.
Most dividend growth investors that I've spoken with agree on the importance of diversification and fall somewhere in between wanting to own 20-50 companies in their portfolio. I currently own 41 companies and I'm trying to really focus on building positions up rather than continually expanding into new positions. So when it comes to diversification you can either weight your portfolio based on capital value or on dividends paid. In a perfect world all companies would pay the same yield to make this a lot easier but we have to work with what's available. I created a chart showing the weighting of my taxable portfolio based on current capital value and on the dividends each position provides.
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- Data Mining The Ccc List: Part 2 - The Contenders
In the beginning stages of building a portfolio, company and sector allocation shouldn't be much of a concern. On a $25,000 portfolio an additional $2,000 purchase would represent a 7% weight in the now $27,000 portfolio. At those portfolio levels...
- Dividend Growth Investing At Work - 2 More Increases
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends. Just for owning a small portion of the companies. Not going and doing R&D for new products...
- Dividend Update - November 2012
November was a decent month for dividends with 5 companies paying out in my FI portfolio but none in my Roth IRA. This was much better than October's 3 total payouts. And December is going to be an awesome month with 12 payouts in my FI portfolio...
- Dividend Update - October 2012
October was a slow month as expected for dividend payouts with only 2 companies paying out in my FI portfolio and only 1 company paying in my Roth IRA. In my FI portfolio, my forward 12-month dividends to start the month stood at just over $930 and...
- How Much To Invest In Your Dividend Paying Stocks
How much you choose to invest in the stocks in your dividend portfolio may be just as important -- if not more important -- as which stocks you choose to include in your portfolio. There are two primary strategies for asset allocation -- passive (equal...
Money and Finance
What's Your Weight?
No I'm not asking you to divulge your body weight, although if that will help you with any weight loss goals you have feel free to do so. The weight I'm referring to has to do with your portfolio. I think we all understand the importance of diversification, especially for those looking to live off the dividends your portfolio churns out. You don't want to be left owning a few companies or a be highly concentrated in one segment of the economy as we all know how that worked out for those that were heavily invested in the finance sector during 2008/9.
Most dividend growth investors that I've spoken with agree on the importance of diversification and fall somewhere in between wanting to own 20-50 companies in their portfolio. I currently own 41 companies and I'm trying to really focus on building positions up rather than continually expanding into new positions. So when it comes to diversification you can either weight your portfolio based on capital value or on dividends paid. In a perfect world all companies would pay the same yield to make this a lot easier but we have to work with what's available. I created a chart showing the weighting of my taxable portfolio based on current capital value and on the dividends each position provides.
Read more »
- Data Mining The Ccc List: Part 2 - The Contenders
In the beginning stages of building a portfolio, company and sector allocation shouldn't be much of a concern. On a $25,000 portfolio an additional $2,000 purchase would represent a 7% weight in the now $27,000 portfolio. At those portfolio levels...
- Dividend Growth Investing At Work - 2 More Increases
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends. Just for owning a small portion of the companies. Not going and doing R&D for new products...
- Dividend Update - November 2012
November was a decent month for dividends with 5 companies paying out in my FI portfolio but none in my Roth IRA. This was much better than October's 3 total payouts. And December is going to be an awesome month with 12 payouts in my FI portfolio...
- Dividend Update - October 2012
October was a slow month as expected for dividend payouts with only 2 companies paying out in my FI portfolio and only 1 company paying in my Roth IRA. In my FI portfolio, my forward 12-month dividends to start the month stood at just over $930 and...
- How Much To Invest In Your Dividend Paying Stocks
How much you choose to invest in the stocks in your dividend portfolio may be just as important -- if not more important -- as which stocks you choose to include in your portfolio. There are two primary strategies for asset allocation -- passive (equal...