Our Dividend Strategy: Sector Definables With Lifetime Staying Power

If you've been reading our articles over the last few months, you know that we've continued to mention companies that we think are great long-term buy and hold candidates, specifically ones that pay dividends. When we began to rebuild our dividend portfolio last month, we started with Ford (NYSE:F) and iShares US Preferred Stock ETF (NYSEARCA:PFF). Since then, we've added a couple of companies like Starbucks (NASDAQ:SBUX) and General Electric (NYSE:GE).

401ks and mutual funds are fun because someone does all of the management for you. The benefits of running your own dividend portfolio is that is allows you to bet on the products and services that you use on a daily basis. This is how we recommend managing this type of portfolio. Switch from Crest to Colgate because you like it better? Make it so in your portfolio. Got a reason to switch from Comcast (NASDAQ:CMCSA) to Verizon (NYSE:VZ)? Again, the same. Another reason is that ETFs and 401k funds are way more diverse than this type of portfolio. Remember, you can incorporate a couple ETFs in the portfolio you manage, but too much diversification isn't necessarily a great thing.

Source: Seeking Alpha

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