There seems to be something so alluring about dividend income that it often seems to lead investors to abandon common sense or be encouraged to do so by the investment industry.
For example, how many times have you heard it said that the majority of returns from investment in equities comes from reinvestment of the dividends?
Adding small-caps to a global equity portfolio adds value without heightening the risk.
If you are an investor you may have encountered these two adages. First, that in order to earn a higher return you must take greater risk. Second, asset allocation is the most important contributor to performance.