Dividends Matter a Lot, But Not More Than Proper Diversification

There were a couple of interesting comments on the blog earlier this week about what I've called dividend zealots, DZ for short. The way some of the articles and comments by the DZs read it would seem buying companies with long histories of increasing their dividends is an infallible investment strategy. Owning nothing but dividend growers is far from the worst strategy one can implement and while it should be obvious that plenty of people do have success with this, there are people who have success with all other types of strategies. Whatever you think is the worst possible way to invest/trade, I promise you someone is having success with it.It should also be obvious that any strategy can fail for whatever reason. Constructing a portfolio of stocks that have some lengthy track record for dividend increases still requires picking stocks each of which has their own risks and... Read more