It is the first rule of investment and it applies particularly to dividend investors. We are not here for a quick killing, nor are we thirsting for the excitement of the casino table.
Diversification to diminish risk is particularly important for income-seekers who cannot afford to lose capital or see the stream of income dry up.
Dividend investors are not looking to chop and change or to cash in quick profits so it follows that you want companies and sectors with genuine continuous prospects for profits, cash flow and, hence, dividends.
Better still if you can get in before other investors spot the company’s potential, but in that case you need ...