Cintas Corporation (CTAS)

[gfp927z]

Bar, Yes, the ultra high dividend payers should be avoided imo. Even a moderately high dividend payout can signal that the company doesn't see many attractive growth opportunities within their business, so they return the capital back to shareholders. I figure it's best to have a decent allocation to mid caps, to get the higher growth potential. But nothing wrong with having some 3-4% dividend payers for stability, like KO, PEP, plus some 2-3% div payers like PG, MCD.

Fwiw, I decided to mainly stick to the S+P 500 to keep things simple, although that index is heavily over weighted in the mega-cap tech names. Almost 20% of the SPY is in just 3 stocks -- MSFT, AAPL, NVDA, and another 10% is in AMZN, META, GOOG. We could be seeing a repeat of the 'Nifty 50' phenomenon, only now it's the 'Nifty 6'.

So probably good to add a mid cap index, as you have done. Mid caps have been lagging in recent years, but over very long periods (15, 20 years) the VO has beaten VOO, albeit with more downside volatility during the bear markets.

With mid caps, good stock picking can beat the mid cap index funds by a wide margin, and that's where Buffett would probably be if he didn't have such a huge amount to invest. A stock picker like him would be shooting the lights out with the mid caps, like he did in the early days of Berkshire.



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