Dividend Portfolio 2

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...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.