Should I start investing more in dividend stocks?

Evelyn

I opened a trading account and am planning to invest $3,000 per month. My plan is to allocate 20% to blue-chip stocks like Apple (AAPL), Tesla (TSLA), and Amazon (AMZN) and 80% to a VOO. Is using dollar-cost averaging (DCA) a strong strategy for long-term investing? Alternatively, do you know how I may strengthen my portfolio for higher returns? Thank you.

Kaile

DCA is a good approach for long-term investing in this erratic market. To get the higher returns, try to add other ETFS like technology and healthcare. This will definitely boost your portfolio.

Evelyn

If the market remains volatile or enters a prolonged downturn, wouldn’t adding sector-specific ETFs, such as technology and healthcare, increase risk instead of ensuring stable long-term returns?

Kaile

@Evelyn
Sector-specific ETFs — particularly in technology and healthcare — can be thrilling due to their strong growth potential, but they also carry higher risks. These sectors can react sharply to market changes, leading to quick losses if the situation deteriorates. That's why it's smart to balance them with a mix of other sectors and asset classes. A well-diversified portfolio not only cushions short-term volatility but also helps you stay on track for long-term financial goals.