Dividends4Life: ETFs or Dividend Stocks?

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ETFs or Dividend Stocks?

Posted by D4L | Sunday, September 25, 2011 | | 0 comments »

I have a low seven-figure investment portfolio and am about to retire. Is it better for me to continue to own a ladder of individual bonds and some 15 to 20 dividend paying stocks, or to move to a pure ETF portfolio?

The more important question to ask yourself is how diversified do you think you want to be? You are going to indirectly own more stocks through the ETF versus owning the 15 to 20 individual dividend paying stocks. The more diversified you are, or the more stocks you own, lowers your risk and volatility relative to the market.

Source: Globe and Mail

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