Dividend Portfolio Sector Allocation February 2015
Every few months like I like post updates regarding my taxable and ROTH account holdings and outline my sector diversification. I find these updates every few months to be vital in assessing my comfort level in owning stocks in specific sectors that I feel have the best chance for growth and dividend stability ten, twenty and thirty years out.
To many, and to my fault or not, you will notice no energy sector holdings nor tech names either. To be certain, I still find the energy sector to be quite attractive at current levels it’s just that the volatility of the entire sector concerns me. Of course, such is the nature of energy and I do not see this changing ever. I still may nibble on an energy sector name in the future as I have added several names to my watch list and, despite not having a position in the sector, be sure that I am monitoring those names. I know some have felt that I am dead against energy which is not the case.
Over the last six months or so I have been increasing my financial sector holdings, namely positions in the large Canadian banks, TD, BNS and RY. Finance is now the second largest sector in my ROTH account but as a whole still smaller than my consumer staples in both my accounts. In general, I am very comfortable making the consumer staples space my largest sector holding. Going forward, I am looking to continue to add to my financial names but also have an eye towards boosting another sector that I’d like to expand, health stocks. Currently names that I own in the sector include, ABT,ABBV, JNJ, BCR, BDX and HYH. Of course, like many of the consumer staples names a lot of the companies in the health sector are quite pricey. But I guess great stocks sometimes come with a price premium attached.
How are your stocks allocated? What is your largest sector holding(s) and how do you feel about having a relatively high overweight sector in your portfolio? Please let me know below.
Disclosure: None.