By: Dividend Sensei
Even history’s greatest investors are only right about 60% of the time. The reason that they do so well in the long-term is a methodical portfolio management strategy that minimizes emotions, and follows a set rule based strategy around a well thought out core philosophy.
In our case our Deep Value Dividend Growth Index is built around the idea that something is always on sale.
Thus we selected the majority of this 200 stock portfolio from companies hitting 52 weeks, with several screens around dividend safety, sound balance sheets, and other metrics designed to minimize the risks of dividend cuts.
That being said, our system is adaptable and if the investment thesis changes, then we are willing to cut our losses, and replace a lower quality stock with a higher quality one, as we’ve done a few times in the past.
However, this week brought two major sales, including two companies in our top 10 holdings.
Find out which companies no longer qualify as high-quality income growth investments, and more importantly what two replacements are far better choices for a diversified dividend growth portfolio.