Published Thu, 19 Dec 2013 08:41:45 -0500 on Seeking Alpha
A few days ago, I wrote a post titled Are Dividend Growth Investors Doing It All Wrong?, which cast some questions at the methods of dividend growth investors. Let's take a quick look at some of the issues I brought up, and then delve into the meat of easily replacing a dividend growth portfolio with a single ETF. I brought up two major points, which were:
The lack of diversification in many dividend growth portfolios.
The focus on the dividend, and the lack of focus on total return.
I pointed out that many dividend growth portfolios are focused too much on consumer names, something that happens because I believe dividend growth investors (like many other investors) place a premium on businesses that they personally are familiar with. Dividend growth investing largely ignores entire sectors (like technology) and anything smaller than the largest of mid cap stocks. This is a... Read more