Dividends4Life: Carefully Chosen Dividend Stocks

Carefully Chosen Dividend Stocks

Posted by D4L | Friday, November 05, 2010 | | 0 comments »

Last week, I talked a little bit about the recent performance of my dad’s income portfolio. In case you missed that column, the upshot was that every new recommendation I’ve made is up and beating the broad stock market since we launched in June. I also gave you five strategies that I’m using to help the portfolio outperform. Of course, as a skeptic would note, we’re just a few months in and the wind has been at our backs so far. You’ll get no argument from me on that. And, look, the last thing I really like to do is toot my own horn anyway. But I absolutely want you to understand just how powerful a carefully chosen list of dividend stocks can be. Which is why I feel compelled to point out the following …

Still, besides my earlier statement that dividend stocks are a great investment category, here are a few bigger rules I’ve used to build my portfolio: First, you cannot just go with the crowd. Second, paying attention to sectors is critical. Why are there so many consumer staples and utility companies in the list above? Third, cut losers before they get out of hand. Fourth, let your winners run when fundamentals warrant it. Bottom line: There’s a lot more to consistent success than these broad guidelines. Yet I’m confident that just doing these four things can greatly improve nearly any investor’s performance and I hope you keep them in mind as you continue to navigate these interesting times.

Source: FXstreet.com

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