Diversification is an important part of investing, and though many dividend growth investors diversify across industries and corporate structures, one area that is often overlooked is market cap. Most of the companies that we focus on are large cap, blue chip-type stocks, since they usually offer higher yields and more consistent dividend growth. But our diversification would not be complete if we did not include mid- and small cap stocks, especially if we are interested in capturing the amazing growth that a well-run, smaller company can provide.
The Dividend Pig
I'm a dividend growth investor who is aiming to retire early in 5 years at the age of 45. My goal is to live off the income my dividend portfolio and rental property produce exclusively and leave the corporate rat race. I hope you will join me in this journey!
6 Comments
Thanks for posting this link.
I find for smaller investors like myself getting the best from DRIPping means you need to find a smaller cap stock with a high enough yield so that you can DRIP the dividend. It be quite a challenge.
Thanks again
Neil
Great article. Small cap value stocks have lead the market since the 1920s. So has compounding dividend strategies. Combining the two and diversifying certainly makes sense.
I like BMR as a small cap dividend stock (not a pump and dump – I’ve owned it for years).