Features of an ideal Dividend Stock
There are many aspects and features that make a particular Stock suitable for an Income Portfolio - the following spring to mind as things to consider:
- Fit with Portfolio - I am sure I have mentioned this before in this Blog epic but I see it as an important point to stress. It is vital that any Stock under consideration as a potential candidate for the Portfolio will fit nicely within the overall Portfolio and not result in over-exposure to a particular theme or sector. Any new Stock must add to the diversity to lower Risk of the overall Portfolio rather than to add to the Risk. It is not simply good enough to buy perhaps 12 Stocks which have high dividend yields etc. - they must be considered as a whole and as a complementary and supportive Basket of Stocks. It is the overall Risk of the Portfolio which matters, not that of the Individual Stocks themselves. Think in terms of a ‘Blended Risk’.