The countdown begins! 2024 is just around the corner, and dividend growth investors are already hunting for the new market darling. One of the most common strategies you will hear as year-end draws near is portfolio rebalancing, where institutional investors realign their portfolio holdings toward their original targets. If the portfolio is skewed from their original mandate, investors will be forced to relinquish some shares or pick up additional ones to meet their requirements. In the case of indices, the index may remove index members and add new ones depending on the index criteria.
Why is this important? Rebalancing a portfolio allows you to stay true to your original strategy. Also, it lets you reassess any mistakes, tune up your holdings, and review your investment strategy. This can also free up cash, allowing you to invest in high-quality companies and take advantage of better equity opportunities. If you don’t know where to start, here are our top five Dividend King picks for 2024 based on their yields.
