Yvette Choo asked 9 months ago
Hello,
Victor mentioned in the 17 Oct 2024 DM Pro webinar that a portfolio should have about 20 stocks. Is he referring to just dividend stocks, or total portfolio (mix of dividend and growth)?
Fifth Person's dividend portfolio has around 20 stocks. This does not include US growth stocks. So I could aspire towards 2 stock portfolios of 20 stocks each? One dedicated to income stocks and another to value-growth stocks? Seems like a lot of data to process! How do you guys allocate between dividend and growth if you want both?
Thank you
1 Answers
Rusmin Ang Staff answered 9 months ago
Hi Yvette,
If you focus solely on pure dividend stocks, then 20 stocks diversification will give you better stability. But if you also have a growth portfolio, you can still stick to 20 stocks total portfolio. Assuming 50/50 split, then you may consider to have ten growth stocks and ten dividend stocks. You can also consider a 30 stocks portfolio with higher number tilting toward the strategy that you like. I think 40 is a little bit too many for one's portfolio but if you love collecting quality stocks and have more diversified portfolio, you certainly can have 40 stocks if that gives you more comfort. There is no right or wrong answer to this question... At the end of the day, it really boils down to your own risk appetite! The more diversified you're, the less volatile your portfolio is going to be.
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