TCPC - Building A $100000 Dividend Portfolio With Optimized Risk-Reward Profile

2024-07-18 18:00:00 ET

Summary

• Building a dividend portfolio from scratch is not an easy task, and it is crucial to ensure a reduced overall risk level to prioritize capital preservation.
• In this article, I will demonstrate how you could allocate the amount of $100,000 following the current composition of The Dividend Income Accelerator Portfolio.
• Due to the portfolio’s reduced risk level and its combination of dividend income and dividend growth, I believe it is suitable for investors of different age groups.

Investment Thesis

Building a dividend portfolio from zero is a challenging task. The most crucial aspect, in my opinion, is to offer investors a reduced risk level from the start. This is essential as it helps investors to prioritize the preservation of their capital.

This reduced risk level can not only be achieved through a broad diversification across sectors, industries, countries, and equities, but also through providing companies that are most attractive in terms of risk and reward with a higher proportion in relation to the overall portfolio. In addition to that, it is important not to provide a high-risk company with a disproportionately high share. The Dividend Income Accelerator Portfolio follows this strategical approach....

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