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Behavioral Finance is very important. I constructed a large dividend paying stock portfolio but my biggest position was WFC and then there was the account scandal crisis. Recently, JNJ has asbestos in baby powder. Both of these companies were for a hundred years considered unimpeachable ethical companies. Once the portfolio gets over $1 million it is hard to keep up if you have a full time job. It is fun but if you had a larger portfolio you might want to put half in dividend paying ETF's to enable you to put more time in managing the other half of the portfolio.


For my daughters, I constructed a dividend paying portfolio of three ETF's: VYM, VYMI and VNQ. VYMI gives you international exposure without the headaches of foreign withholding taxes. VNQI is a fourth but I though REIT investments in Hong Kong, Singapore and Japan might be too risky.


If I inherited $20 million, I would put 100% in ten dividend paying ETF's including the four mentioned above. I would use the dividends and distributions to purchase individual stocks. That gives me immediate diversification at low cost and the fun of making individual bets.

Big picture: the best stock investment is a dividend paying stock or a dividend paying ETF. As the book says: Dividends Don't Lie.
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