Why I Don't Have Nightmares Over Disappearing Dividend Aristocrats

A recent article by fellow writer Psycho Analyst was titled, "The Fate Of These 49 'Dividend Aristocrats' Of The Early 1990s May Give You Nightmares." The article was a follow-up to "These 26 Dividend Aristocrats Won't Let You Sleep Well at Night." I think it is fair to say that the author's point of view is that the near-yearly removal of some companies from S&P's Dividend Aristocrats [DA] list ought to cause dividend growth investors to question the strategy and affect their ability to sleep at night.

I applaud Psycho Analyst's article for highlighting some risks of dividend growth investing. To the extent that his or her article reminded investors of why they do due diligence, practice risk management, and monitor their portfolios, the article served an excellent purpose. That said, my own belief is that the article overstated the risks of dividend growth investing and portrayed the strategy inaccurately in some respects. If the message is to invest with caution and care, I say absolutely. If the message is that I should be scared or expect to sleep badly, I don't think so. I sleep well most every night. I sleep well partly because of DGI, not in spite of it.

Source: Seeking Alpha

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