occdude

A Buy & Hold Forever Dividend Stock Portfolio

I like dividend paying stocks. I think that any portfolio needs to have the flexibility to drop and to pick up stocks within the portfolio however and even the dow and S and P replaces stocks that fail in market cap so I would have a bit more flexibility in that regard unless I used ETF or index fund.

Next I would put in asset allocations that actually reflect your expected expenditures to retain purchasing power. The dividends would be reinvested untill the portfolio actually needed to be tapped. This would place a higher allocation into REITS due to the fact that you'll spend more on real estate than say technology in your "real life". If REITs were to fall in price or yield, the price of real estate presumably would follow, same thing with the other allocations.

Using this methodology your allocations might look something like this.
20% REITS
10-15% energy/transports
10% healthcare/drugs
10% food
10% tech/telecom
10% retail
15% cash
15% hard assets
Once again dividends should be reinvested (preferably in a tax defered account). And idexing is recommended for both diversification and low management fees.