Dividend Growth Investing Done Better Part 3

Dividend growth does not always work well throughout the complete investment, economic, and market cycles. In some parts of the cycle, companies that don’t typically have significant dividends, such as oils, base metals, gold, and forestry companies, tend to outperform.

So, if you want to have consistent income, capital protection, and modest gains throughout the market cycle, you need to have more than just dividend growth in your income investing portfolio.

Mirador adds fixed income investing and covered call writing to diversify your income sources rather than depending on only dividend growth This income style diversification improves the consistency of your income and capital value throughout the multi-year market cycle.

Fixed income will often outperform when stocks are out of favour. Call writing can give the portfolio exposure to and income from sectors that are not typically known for healthy dividends and dividend growth.

At Mirador we actively change the allocation between the three income styles based on the relative price strength, relative yield analysis, and volatility comparisons of the 3 programs.

Call me at 403-718-0125 or visit our website at miradorwealth.com if you would like to learn more about different styles of income investing and how to apply them in different parts of the investment, economic and market cycles.