Build Diversity: Part 8 Conclusion

30 Mar 2014 01:15
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The Build Diversity series was started to question a common misnomer that the selection of dividend growth companies is very limiting and the largest risk is lack of diversification.

After multiple screens we have identified 52 potential stocks spread over 11 sectors with market caps ranging from $17B to below $100M. We've seen results from momentum growth sectors (such as technology and healthcare), traditional dividend growth sectors (such as consumer staples), and defensive sectors (such as utilities & small local regional banks).

The search results were astounding and proved that dividend growth investing is not limited and has access to a large diversity of stocks in many shapes and sizes. Additionally, if we lowered the screen requirements on dividend yield to as low as 2% the universe of stocks available almost triples.

Whether or not dividend growth investing is the best strategy is arguable but to state you cannot adequately diversify is completely false.

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