Dividends4Life: Asset Allocation and Dividend Stocks (DIV)

Asset Allocation and Dividend Stocks (DIV)

Posted by D4L | Saturday, July 03, 2010 | | 0 comments »

I believe that the right asset allocation is important for a dividend portfolio – any portfolio for that matter. Among the academic reasons for a sound asset allocation that covers the right balance between risk and reward which leads to the right level of volatility for a portfolio which also helps determine return, there are other reasons I like asset allocation. In this post I will discuss that reasons and then provide you with an update on what my current allocation looks like.

One of the reasons I find asset allocation so important is that it helps guide me with what asset class to purchase or even sell at any given time. In my own allocation I have, at a high level, outlined the percentage of Canadian equities, US equities, international equities, and fixed income that I need to hold. I have set a target allocation that I want my portfolio to hold and the process is simply a matter of monitoring which assets are above or below target and taking action.

Source: The Dividend Guy

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