I am a firm believer that asset allocation plays a significant part in a portfolio’s long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.

This time last year it was easy to find good dividend stocks trading at a fair value. The question was, ‘which of these do I buy?’ Now the questions is often, ‘am I willing to pay this much for that stock?’. If we look close enough, there are still a few dividend stocks trading below fair value.

As dividend growth investors we are looking for stocks can continue to raise their dividends indefinitely into the future. One metric that provides an indication of a dividend’s sustainability is its payout ratio.

When selecting a dividend growth stock there is really only one factor that is important – sustainability.  As we evaluate many aspects of a company, what we are really trying to determine is if the company can continue to raise its dividend indefinitely into the future.

Harleysville Group Inc. is a regional holding company for property and casualty insurance companies that operates in 32 states, primarily in the eastern half of the U.S. Linked here is a detailed analysis and commentary.

Dividend increases aren’t the only thing the Kellogg Company (K) is known for. For anyone over the age of two, Snap, Crackle and Pop are very familiar characters. Since 1933 the three elf characters have been the spokesmen for Kellogg’s Rice Krispies.