Higher Complexity or Risk Does Not Mean Higher Returns

In my last post, I discussed about how I dealt with my existing position in some of the dividend cutters. I received a question that “can your post be interpreted as a recommendation to buy BAC and WFC because they are cheap”, and “what about GE, doesn’t it have wide moat, you ignored GE and did not mention anything about it”.

To begin with, this blog is not about recommending any stock or advising what do with individual’s investment. I have mentioned this in my disclaimer. This blog is a chronicle of my quest to build an income portfolio. I do not recommended or advise buying any stock on this blog. The premise of the post was how I dealt with the dividend cutters in my portfolio. It was about risk management process for my own dividend growth portfolio. It demonstrates my thought process with reference to my principle of objective based investing approach. I added to my original position based on my personal risk profile. I did not initiate a new position. continue reading rest of the article….

Comparing Dividend Yields in Three Different Markets

Individual investors know that dividends are paid to common shareholders by corporations across the world, in different economies, different markets, and variety of industry segments. It is also a common knowledge that the characteristics of such dividends such as yield, frequency, how dividends are perceived, quality, and growth are very different. In addition, as a US-based investor, there are additional risk factors, some of which I had discussed earlier.

I am of the view that a look at individual index and their yield should provide general birds’ eye view of trends in any given market. While there may be varied arguments about quality and validity of such comparison, I still believe it is a good start to understand any given market and its policies vis-à-vis common shareholder dividends. continue reading rest of the article….

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