DGRW: A Dividend Growth ETF To Round Out Your Portfolio

Michael Fitzsimmons
21.98K Followers

Summary

  • The recent market rotation out of growth and into value and yield likely caught many investors flat-footed and over-weight in technology.
  • Dividend growth stocks should have an allocation in portfolios of  investors who want a well-diversified portfolio built for long-term success.
  • As compared to picking individual companies, some investors might prefer owning an ETF of dividend growth stocks for diversification and risk mitigation purposes.
  • Those investors should consider an allocation to the Wisdom Tree U.S. Quality Growth ETF as a relatively cost-efficient and well-performing vehicle for dividend growth exposure.

Pie-chart on paper graphs
Photo by Henrik5000/iStock via Getty Images

My followers know I advise investors to keep a well-diversified portfolio built for what the market wants to give you, total returns, risk mitigation, and ultimately long-term financial success and security. The recent market rotation likely caught many investors over-weight in growth and technology

This article was written by

21.98K Followers
Michael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

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