birder

6 Dividend Stocks for Current Income

Although I do agree with the comment that an EFT does hold a large selection of stocks thus mitigating specific risk, I have to comment that EFTs also are not so well healed as many might think. The comment was made that PFM holds 282 companies. Yes, but they do not hold them in equal proportions. Their largest holding is GE at 4.7% of assets. I will not comment on whether or not GE is a good company to hold, but I would not wish to hold it. Ten companies account for about 44% of their assets. The top 25 account for 67% of their holdings. The bottom 100 holdings account for less than 2% of their assets. This is not particularly my idea of having a sound dividend investment strategy. If I am going to hold 44% of my assets in 10 companies, I would rather be the one choosing those 10 companies rather than some computer somewhere based on some screw ball algorithm dreamed up by some screw ball on Wall Street.