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Investment Analysis Clubs / Dividend Growth Investing
|Subject: Re: Van Knapp on Diversification||Date: 2/10/2013 2:14 PM|
|Author: TMFMurph||Number: 7829 of 10433|
While I don't necessarily agree with the specifics of his choices, the idea of spreading the dividend risk across a greater variety of companies ( from 10-15 to 15-25 ) has merit....at least for me and my long-term financial plan...which is why I posted it for consideration.
I don't think there is a problem identifying that many quality companies who won't have a problem paying...and increasing...their dividends faster than inflation. Further, going to a greater number of companies allows one to more effectively diversify by sector/industry.
Chasing yield for short-term yield's sake is wrong for me and my plan. Diversification is not.
But then, as Warren Buffett says, diversification is insurance against ignorance...and I have absolutely no problem agreeing that next to investors like WEB, I am "ignorant". ;-)
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