Digging Into Your Favorite Consumer Names

When looking at various dividend portfolios, there are normally common themes on what types of stocks are found. Most people immediately think of real estate and utilities as heavyweights in the dividend-investing world. They are seen as providing higher yields and slow growth. However for some dividend lovers, many portfolios add healthcare and consumer stocks.

A huge percentage of TV interviews or written articles address consumer stocks with some simple observations that hit home with investors. See if this sounds familiar: “Who doesn’t take a shower or shave every day? – shampoo has great demand.” or “Everyone know what soap and breakfast cereal are – stop looking for complex stories and invest in things you understand and use in daily life.” or “These companies have been around for many decades with huge brand names you know and they pay dividends too.” As a result, we find that most dividend portfolios have 15%-30% invested in these types of companies…Read the rest of the article here…