Showing posts from September, 2015

On Substituting Dividend-Paying Stocks For Bonds In The Current Environment

Today's article is going to come from a very interesting place for ETF Monkey.

Readers who have followed my work will by now be familiar with its main focus, namely using ETFs to build low-cost, extremely diversified portfolios. An example of this is the ETF Monkey Vanguard Core Portfolio; based on just three ETFs yet offering well-balanced exposure to both domestic and foreign stocks as well as bonds. In the article linked above, I advocated establishing target weightings and sticking to these. I wish to reiterate that, for many investors, I would recommend sticking to that game plan.

ETFs form the core of my portfolio, comprising 81.11% of my total portfolio as of this writing, and I am very conscious of maintaining and rebalancing to target weights.

However, I occasionally make an exception and maintain modest positions in individual stocks for specific reasons. As of this writing, two such positions are AT&T Inc. and Verizon Communications, each of which holds a weighting …