Dividend Cuts

In cutting the dividend in 2016 I judged Melcor Development Inc. to be prudent. I know that people who invest for dividend income generally judge companies harshly that cut dividends. However if you invest for the long term like I do, sometimes your companies must do such things. It is better to do this then to pay dividends that are not affordable.

If you have a diversified portfolio one company cutting their dividends should not do your dividend income any harm. In any given economic situation different companies are affected differently. You will have companies that cut dividends, ones that keep them level and ones who increase dividends.

So you have different economic climates in which you have companies that affected differently. This happens a lot. If you diversity your portfolio over different sectors you will be fine as different sectors will very often perform differently.

I have written about diversification before under Diversification and Sectors I Invest In. In my portfolio I cover the following sectors.

Index	Sub-index
Consumer	Cons Dis
Consumer	Cons Staple
Real Estate	Real Estate
Financials	Bank
Financials	Financial Services
Financials	Insurance
Industrial	Construction
Industrial	Industrial
Industrial	Manufacturing
Industrial	Services
Materials	Materials
Resources	Energy
Tech	Tech
Utilities	Infrastructure
Utilities	Power
Utilities	Telecom Serv

On my other blog I wrote yesterday about BCE Inc. (TSX-BCE, NYSE-BCE)... learn more. Next, I will write about Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more on Friday, April 30, 2018 around 5 pm.

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.

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