The risks of an over-diversified portfolio are real. We talk a lot about how diversification protects your portfolio. But some investors overdo it; they buy too many holdings. Diversification can become diworsification. Is that a thing? Yes, it is. Warren Buffet says that investors should either go with the S&P 500, easily done with ETFs and which is close to full diversification, or just a handful of stocks in which they have a lot of conviction. About 40% of his portfolio is Apple stock; he does okay, right? It’s true that if you invest only in five high-conviction stocks and they all go ..read more

No, this isn’t a Batman adventure, but rather a post explaining the Brookfield companies. Brookfield Corporation is huge. With over 180,000 employees in 30+ countries, it manages more than $750B in assets invested in its various businesses. Brookfield companies operate in different industries, for example, asset management, renewable energy, reinsurance, and infrastructure (with tickers including BIP, BEP, BAM, etc.). They can be great investments, as long as you understand which is which! Many investors have been excited about Brookfield’s diversification, its smart business model, and its ab ..read more

For many investors, the basic materials sector doesn’t exactly stir up excitement. It’s true that stocks in this sector tend to be cyclical and volatile, and not many are steady dividend growers. But, there are gems to consider, and speculative plays to be made. Basic materials include most natural resources used to make goods. The sector includes companies that discover, extract, develop, and process raw materials. This includes various metals (copper, gold, silver, etc.), agricultural inputs like fertilizers, lumber & wood along with paper products and specialty chemicals. Don’t miss a t ..read more

Enjoy growth and diversification of your portfolio with the industrials sector. Whether you are an income-seeking investor or growth-oriented, you’ll find plenty of solid candidates in this sector. However, learn about the benefits and pitfalls of this sector before choosing stocks. Companies in the industrials sector produce and distribute goods and services related to industrial activities. This encompasses a wide range of businesses involved in manufacturing, construction, transportation, aerospace and defense, engineering, industrial services, and other industrial-related activities. I fee ..read more

A buy list stock for March 2024 is NextEra Energy (NEE). I see this as a falling knife, i.e. a speculative play on a company whose stock fell quite a bit but that has very good chances to go up again. Missed our buy list stock for last month? Learn about it here. NextEra Energy Business Model NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC—collectively known as NEER—and Florida Power & Light Company (FPL). FPL segment is a rate-regulated electri ..read more

Think about the healthcare sector and big pharmaceuticals usually come to mind. When we dive into the healthcare sector, we see it’s much more than that. From medication to vaccines to artificial hips to pacemakers, from sophisticated MRI machines to syringes and surgical gloves, from lab tests to managing hospitals, from getting supplies where they’re needed and delivering care, many industries play a role in healthcare. Let’s explore what’s in the healthcare sector and whether it’s a good fit for dividend investors. Before we do, you can subscribe to our weekly newsletter, right here. Health ..read more

American Tower is still a buy list stock in February 2024. Who would have thought that cell tower REIT could bounce back that fast? After mostly a bad year in 2023, it only took two months! AMT also resumed its generous dividend increases. OK, we lack great timing—we should have selected AMT in October rather than January 2023—but it’s always easy to play Monday morning quarterback. Missed our buy list stock for January? Find out about here. American Tower Business Model A holding company, American Tower Corporation runs a real estate investment trust (REIT) that owns, operates, and develops m ..read more

An old favorite is making its way as a buy list stock for me this month: PepsiCo (PEP). This aristocrat increased its dividend yearly for 50 years and, with the recent slump in its stock price, it’s worth a look. In case you missed it, we also provided other suggestions of great U.S. stocks earlier this month. PepsiCo Business Model PepsiCo, Inc. is a beverage and convenient food company. The Company’s segments include Frito-Lay, Quaker Foods, and PepsiCo Beverages in North America, and beverage and food businesses in Latin America, Europe, Africa, Middle East, Asia, Australia, New Zealand, an ..read more

Many investors are perplexed about how to compare stocks that they’re interested in for a specific sector or industry. How can you make sure you’ll pick the right one for your portfolio? Unsure, some investors buy a position in all of them, which is a mistake if you want a well-diversified portfolio. Let’s get some clarity on how to compare stocks and remove doubt. Watch our video!  Apples to apples Compare stocks from the same sector or better still, the same industry. Different sectors have different opportunities, risks, cycles, customers, margins, etc. Take Apple and Equinix. Other t ..read more

A common investing mistake is income obsession. Others are holding too many stocks and focusing on valuation to know if the price of a stock is right. Sounds familiar? Any of these mistakes hurts your portfolio. Luckily, you can fix it. Learn about the other two frequent mistakes investors make here. Income Above All A dividend investing strategy is usually aims to create an income stream from a portfolio, to live off dividends and keeping the capital comfortably secured in a brokerage account. If you hold your shares, you get your paycheck. It’s like a pension plan, by you manage it! However ..read more