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Strategies & Market Trends : Dividend investing for retirement
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To: Elroy who wrote (24107)12/26/2015 10:22:50 PM
From: rnsmth  Read Replies (1) of 34328
 
<<Hmmmm, OK. It's sort of hard to do much analysis of your reasoning since there's no numbers in it.>>

Credit rating. Check that out.

I know it is within the comfort zone of some investors to hold risky companies in return for stratospheric current yields. My main concern is safety of the dividend and of dividend increases. The overwhelming majority of my holdings have investment grade credit ratings, most above BBB.

I do not need much in the way of numbers to avoid BDCs. I do have one REIT that seems more similar to a BDC in that it provides financing for clean energy projects. I consider HASI to be a speculative position, and has such it is a half-weight position.

Using credit ratings as one screen is not a perfect system, KMI, for example, but as part of the screening process it works for me.

Look up Bob Wells' article on non-financial dividend cutters during the Great Recession, very few had credit ratings below investment grade. Very Few.
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