Wednesday, April 24, 2019

Div Tip #2: Be selective with diversity.

Dividend Tips Jar
Dividend Tips

Buying an index fund with hundreds or thousands of firms means buying a lot of under performing issues.  Counting on a handful of overachievers to carry the mass of laggards is tough sledding.

It’s better to select a smaller number of high quality companies to achieve the needed diversity while avoiding the mass of underachievers.
 
The universe of high quality dividend champions, contenders, and challengers is big enough to provide investment diversity while allowing me to select the steady performers I want.  Consequently, it’s possible to avoid buying the chaff and focus my investment dollars on more valuable dividend crops.

No comments:

Post a Comment