It is my belief (from years of experience) that for you to have long-term success as a dividend income focused investor, the primary consideration is how you handle your overall portfolio management.
My first step was to divide the recommendations list into three categories:
- Conservative Dividend Stocks: These have higher levels of safety for the dividend payments and good potential for dividend growth.
- Aggressive High-Yield Stocks: These are the stocks with very high current yields, but a greater risk of dividend reductions.
- Fixed Income Investments: These are preferred stock and bond investments where the yields are from market interest rates and not business results.
These categories will let you manage the level of risk in your portfolio. I will be explaining how I view each category in future Dividend Hunter newsletters. To start I have set up a results tracking spreadsheet with my decision on how each of the Dividend Hunter stocks will be classified.
In the Fixed Income group, I have included a five-year ladder of the BulletShares ETFs. I first discussed these unique ETFs in the August 2018 issue of the Dividend Hunter. You download the issue from your member area on the Investorsalley.com website.