Income Method: The Rule Of 42

Jun. 29, 2025 10:15 AM ET42 Comments

Summary

  • Strong portfolio management rules are a defining characteristic of our Income Method.
  • Today, we're diving into a divisive topic to explain our viewpoint and guidelines.
  • This isn't rocket science, but it's foundational investor education.
  • Looking for a helping hand in the market? Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Learn More »

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Co-authored by Treading Softly.

"In the multitude of counsellors there is safety."

– Jewish Proverb

The arguments surrounding diversification continue to rage on. Some well-known stock pickers and research analysts recommend that holding a large

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This article was written by

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Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991.

Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield.

Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

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