Only you can decide for yourself which is the best dividend stock to buy next. If there are several dividend stocks that you love, but you can only choose one to buy right now, here are some things you can consider.
Keep your allocations in check
You should know how much invested capital you have in each stock holding and each sector and or industry. You also should know how much they’re worth at market value. This is so that you won’t have too much invested in any company, which should help reduce emotional buying and selling.
Here’s a simple example. Let’s say that five years ago, for our portfolio, we originally invested $2,000 in each of Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Emera Inc (TSX:EMA), Alimentation Couche-Tard Inc (TSX:ATD.B), Amgen, Inc. (NASDAQ:AMGN), and Brookfield Asset Management Inc (TSX:BAM.A)(NYSE:BAM).
In other words, we invested an equal amount of money in each company for the equal-weight portfolio. Each holding made up 20% of the portfolio. Read More