Below are some other questions that should probably be asked of Dividend portfolio investing:
Question: So, a dividend portfolio can give a steady dividend income, but is there any downside in such a portfolio?
Answer: The dividend income may be steady, but the value of such a portfolio can fluctuate is my experience.
Question: So, how volatile is a dividend portfolio?
Answer: In the last two bear markets my portfolio value fell 30% each time. It did recover in between the bear markets.
Question: How did you handle this?
Answer: I basically stopped looking at my portfolio (except monthly) until the bear markets stopped. (I think that this is called an avoidance method. I am quite serious here. I felt that there was no point in getting upset about my portfolio value. I concentrated on what my dividend income was doing.)
Question: What about a recovery from a bear market?
Answer: My dividend portfolio recovered quite well. The recovery of a portfolio of dividend stocks recovers quicker than Mutual Funds or ETFs. (However, this is a whole other story of why this should be.)
On my other blog I am today writing Canam Group Inc. (TSX-CAM, OTC- CNMGA) ... continue...
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