This Portfolio Was Saved by Diversification, Again

This Portfolio Was Saved by Diversification, Again

The real-money Inflation-Protected Income Growth portfolio attempts to build an income stream that grows every year at least in line with inflation. The primary strategy it uses to strive for that goal involves buying shares of companies that pay dividends, have recently raised their dividends, and look capable of continuing to raise their dividends.

In the brief video below, portfolio manager Chuck Saletta talks about how diversification was the primary thing that kept Intel out of the portfolio:

Intel's recent decision to hold its dividend steady rather than increase it came just after Microsoft's earnings-related weakness last week. That back-to-back punch from those related companies drives home just how important diversification can be in protecting an investor's portfolio.

For more on the diversification decision that kept Intel out of the portfolio and the factors that helped Texas Instruments make the cut instead, click here to check out Texas Instrument's selection article.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.

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The article This Portfolio Was Saved by Diversification, Again originally appeared on

Fool contributor Chuck Saletta owns shares of Texas Instruments, Microsoft, Cisco Systems, and Intel. Chuck also has an options position in Apple. The Motley Fool recommends Apple, Cisco Systems, and Intel. The Motley Fool owns shares of Apple, Intel, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published