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Downsides of Focusing Too Much on Bond or Stock Dividends

Sunday, April 25, 2010 - 11:57 AM
Chasing high-yield dividend stocks has risks. This WSJ article describes several risks of focusing too much on income-producing investments. This was an interesting example of what can happen if you focus too much on dividend-paying stocks:
Yet look at what investors experienced in the iShares Dow Jones Select Dividend Index Fund (DVY). At the end of 2007, 46% of the portfolio was in banks and other financials. During 2008, the fund's value fell 33%. (Today the fund has about 15% in financials.)
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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Monday, April 26, 2010 - 9:42 AM
General concern here is well taken, but the examples are somewhat misleading.
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AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,952
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