Smart, active investors should build a portfolio foundation on growth stocks with dividends
Whether you’re just entering the market or are a stock
market veteran, investing in stocks comes down to making your invested cash
worth more over time. And this comes not just by an S&P 500 Index that
maybe moves up, but by making the time and effort to invest in companies that
are growing their revenue and profits as well as their intrinsic value.
You are reading this because you are an active investor.
That puts you ahead of millions in the U.S. who don’t want to do their homework
for investing. My job used to be working with institutions to trade and invest
in markets around the globe — particularly in the bond markets, as I am at my
core a banker and credit guy. And later I did the investing for folks.
But in modern times, my job at Profitable Investing is to
provide my ongoing take on economic and market developments and the best
investments for growth and income.
My quick guidance for you is to think about building a
portfolio for growth stocks with a base of dependable sector companies. Then
the second story is to add some mid-level companies with proven capability to
build revenue and value. And then add the top level of higher-growth-potential
companies that come with some risks.
And for each level, dividends come into the decision
process. Dividends aren’t just about cash for retirement living. They are about
companies that consider shareholders as primary owners of their businesses. And
dividends pay you to be patient through downturns. And they can be piled up and
strategically invested again in more stock to further grow the bottom line of
your portfolio.
And as an old adage that I use, I’ve never met a man gone
broke with regular checks coming in.
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