June Dividend Income Report - How To Protect Your Portfolio Against Bears
Published Jul 15, 2020 on Seeking Alpha

Seeking AlphaDividend StrategyJune Dividend Income Report - How To Protect Your Portfolio Against BearsJul. 15, 2020 6:46 AM ET|| Includes: ADWPF, ANCTF, ANCUF, CAE, ENB, FDX, HAS, ITPOF, LAZ, MGA, MSFT, NTIOF, RY, SBUX, SYZLF, TXN, UPS, V, VFCby: The Dividend GuyThe Dividend Guy Dividend Growth RocksA service focused on stocks doubling their payouts within 10 years.SummaryFocusing on the dividend triangle and picking companies with strong dividend growth profiles have increased my chances of beating the market.
I also value companies that took a solid hit but are still showing long-term positive returns.
I review each of my holdings quarterly and make sure it's still in line with my investment thesis.
I must warn you, I'm not the typical investor. I don't pretend that my strategy is the best one and that anybody else should apply it to his/her portfolio. But, I like to share my thoughts on the matter and hope it will help you refine your strategy at the same time. There are three main "rules" I use when it comes to building a strong level of protection for my portfolio.
Those strategies weren't in place back in 2008. My portfolio was 100% stocks, but it wasn't focused on dividend growth. Back then, I saw my money shrink by 27%. I think this was a win. However, in 2018 while both the Canadian and U.S. markets ended in red ink, my portfolio was up by 5.5%. More recently in 2020, both markets hit 2017 levels while my pension portfolio was floating 8% above 2017 level at the bottom. Disclaimer: I had no gold during those periods! Here's how I did it:
Focus on dividend growth - offense is often the best defense Focusing on the dividend triangle and picking companies with strong dividend growth profiles have increased my chances of beating the market. As many ETF fans like to put it, dividend growers are characterized by several factors, making them more solid companies (competitive advantages, robust balance sheets, strong margins, and cash flow generation... Read more