Firstly thank-you for the excellent service you have provided over the years. I am wondering at these somewhat turbulent times as to what proportion of "dividend stocks" one would be advised to include in one’s investment portfolio. Would it be possible to comment on whether or not these should be weighted in terms of denomination of currency or if of an international trading base, preferred region of trading? I have looked through the chart library and found it quite difficult to identify individual aristocratic dividend stocks.

David Fuller's view

Thank you for your thoughtful comments and topical question of general interest.

First, I would go to the Chart Library ‘Selections’ in the grey bar above lists and charts, and click on ‘International Equity Library’.  At the top of the left-hand column, you will see ‘Autonomies’ – a list of over 180 large, leading multinational companies, approximately half of which are headquartered in the USA.  Most of these pay dividends.  Immediately below Autonomies, you will see ‘Dividend Aristocrats’, which has a number of sub-sections.  Personally, I would not look any further if you are seeking a diversified, international portfolio of sector leaders and also dividend aristocrats, so called because they have raised dividends every year for a specified number of years. 

The next point I would consider is timing. Stock markets have floated higher on a sea of liquidity from Central Banks, which have kept interest rates at record lows in most developed economies.  This has created some bubbly conditions.  Government bonds in the same markets are in 35-year plus massive bubbles due to quantitative easing.  These bubbles have not yet burst but risks of turbulence ahead are high. 

Returning to the Autonomies and Dividend Aristocrats, I would not chase anything higher.  Instead, I would only consider these shares after they experience either substantial rotational corrections, or better yet, stock markets undergo a significant correction as we saw at the beginning of the year.  You will probably know which sectors and shares you feel most comfortable with.