What percentage of stocks should I hold?

As a first reference, 120 minus your age. Adjust for your horizon and, above all, for the fall you can endure without selling: if a −40% would make you liquidate, your equity weight is too high.

Where do dividend stocks fit in an asset allocation?

As a style within equities: a dividend portfolio is still "stocks" for allocation purposes, although its volatility tends to be somewhat lower than the market's.

How often should I change my allocation?

Almost never: only when your life changes (horizon, income, goals), not when the market does. Changing the split in the middle of a crash is the most expensive way to discover your real risk tolerance.

Asset Allocation | Wiki Por Dividendos

Asset allocation is how you split your capital across the major asset classes: stocks, bonds, cash and, in some portfolios, real estate, gold or others. It is the most important investment decision you will make — far ahead of picking individual stocks or timing your entries.

Why it is the key decision

The classic studies (Brinson, Hood and Beebower) estimated that asset allocation explains around 90% of the variability of a portfolio's results over time. Stock selection and market timing — where many investors spend most of their energy — explain the rest.

The reason is simple: asset classes behave very differently. Stocks offer the highest expected return at the cost of deep falls (drawdowns of 30–50% every so often); bonds cushion; cash earns little but gives options. The mix determines how much your portfolio can fall and how much it can grow.

How to choose your split

It depends on three factors:

Horizon: the further away the moment you will need the money, the more weight equities can carry.

Profile	Stocks	Bonds	Plausible fall in a crisis
Conservative	30%	70%	~10–15%
Balanced	60%	40%	~20–30%
Aggressive	90%	10%	~35–45%

Asset Allocation

Why it is the key decision

How to choose your split

Three sample portfolios

Frequently asked questions