“A picture is worth a thousand words.“
I am sharing with you today the House dividend analogy.
PLEASE BE AWARE THAT I DO NOT ENDORSE ALL THE STOCKS THAT ARE QUOTED IN THIS PICTURE.
This Picture respects the fundamentals of a 3 tier portfolio. In this house you don’t touch the foundations once it is in concrete state. ( 1st tier stocks)
The supporting walls are representing the 2nd tier stocks which you can change but not often, you don’t replace the roof every year, but most likely every 10-15 years.
Every stocks outside the house are the 3rd tier stocks, which are the return booster and capital gain solution to strengthen the house in the long run. Those are open to Market opportunities that can come your way at any time.