Q&ACategory: Dividend StocksRebalancing portfolio
Dan Then asked 2 weeks ago
Hi. On the topic of portfolio management, we start with allocation of fund to equal amount for selected number of stocks. At later times, values of stocks changes significant, do we reallocate the fund to each stock using market values. Do we have to exercise  buy/sell of individual stock to achieve allocation amount. Thanks
1 Answers
Rusmin Ang Staff answered 2 weeks ago
Hi Dan, For dividend stocks, we usually diversify based on cost. Unlike growth stocks, dividend stocks usually do not see significant jump in share prices as most companies return the capital back to shareholders in the form of dividends but if you notice that some dividend stocks really appreciate significantly in price, then you may consider doing rebalancing that particular stock (if it trades at low yield) to slightly reduce your exposure.
Dan Then replied 2 weeks ago

Thank you.