is up about 38 per cent on a total return basis, while the S&P 500 is up 74 per cent.John Heinzl replies: Yes, the S&P 500 has left my model portfolio in the dust in recent years. I’ve been quite open about that. But I’m glad you brought it up, because it gives me a chance to remind readers of a few points I have raised in previous columns.
First, the portfolio is not meant to be a template for people to copy exactly. Its purpose is to provide investment ideas and a real-time illustration of dividend growth investing in action. There are lots of great dividend stocks that aren’t included in the portfolio; investors should look at casting their nets widely.
Second, I always encourage dividend investors to diversify with exchange-traded funds, including those that track the S&P 500, which provides exposure to key sectors such as technology and health care that are underrepresented in Canada.