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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (6385)	11/12/2010 7:46:00 PM
From: chowder	Read Replies (2) \| Respond to of 34328

I'm not concerned about MLP's and REITS as of today. However, I don't want to wake up 5 or 10 years from now to another Halloween Massacre like the CanRoys suffered, or the banking and BP crisis! You just never know. I can make those losses up now by continuing to fund the portfolios, but several years from now, those portfolios are on their own. Income streams from MLP's and REITS can get overweighted due to their high yields. So, to minimize income risk, I will rebalance annually and buy more PG, JNJ and CLX for example, to keep the income stream from all companies somewhat equally weighted. This exercise is actually harder to execute than one might think. It's difficult to change the way I look at capital gains. I've got to push that out of my mind. It's the income stream I wish to increase. I'd prefer not to sell anything, other than rebalancing. That doesn't mean I won't! I'll sell in a heartbeat if a company lowers their dividend, stops the dividend or announces it may be several years before they get back to increasing the dividend. I sold BP because it stopped paying a dividend. I sold KFT because they said they were considering paying off debt as opposed to raising the dividend over the next couple of years. I have shaved some MLP's to increase income streams from other positions. Now my 25 year old son is sitting in great shape. What a nice portfolio he has. He's up to 27 dividend paying companies now and continues to add cash every month and most of his companies have increased dividends this year. This is on top of his TSP from work. And, he has zero debt.