CA - 2 Terrific 7-9% Yielding Gems For A Choppy Market

2024-07-01 11:00:00 ET

Summary

• Owning a basket of stocks can reduce portfolio risk, but valuation risk should be considered.
• Diversification with dividend-paying value stocks across industries can mitigate sector downturns and individual stock risks.
• BCE Inc. and Scotiabank offer high yields, undervaluation, and strong market positions, making them attractive for income-focused investors.

A great way to reduce risk in one’s portfolio is to own a basket of stocks. While it’s easy to simply buy a lot of stocks, one must also consider valuation risk.

For example, a portfolio may have 20+ or so stocks, but if all of them are overvalued tech and growth stocks, then a sector downturn would have a broadly negative effect over the portfolio....

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