Diversifying Your Dividends for Yield and Growth
Dividend investors can enhance yield, support growth and reduce risk by diversifying across sectors.
Charles Rotblut leads a class in AAII's new Essential Investing Video Course. Go to https://www.aaii.com/ves for more information and to subscribe.
Dividend-paying stocks exist in all 11 sectors, offering opportunities beyond traditional income sectors like utilities and real estate
Diversifying dividend sources helps adapt to changing sector performance and economic cycles
Tools like AAII Stock Screens and mutual funds and ETF guides help investors find dividend opportunities across sectors and industries
When investors think about dividends, certain sectors come to the front of mind. Utilities is often the first sector associated with dividends. Consumer staples, energy and real estate are others.
There is justification for this reputation. Many companies in these sectors pay dividends and have done so for a long time. Investors seeking income-producing stocks will find plenty of options in these sectors.