TCPC - How To Build A Dividend Portfolio From Scratch That Yields More Than 4%

2024-02-01 18:00:00 ET

Summary

• The dividend portfolio I will present to you today not only yields more than 4%, it also offers a reduced risk level, indicating a high probability for positive investment results.
• Eight out of the 16 individual companies that are part of this dividend portfolio exhibit a 60M Beta Factor below 1; while 14 have a Payout Ratio below 80%.
• The Weighted Average Dividend Yield [TTM] of this portfolio stands at 4.31%, while its 5-Year Dividend Growth Rate [CAGR] of 8.37% indicates strong potential for dividend growth.

Investment Thesis

The objective of today's article is to demonstrate how you could build a dividend portfolio from scratch that provides you with a Dividend Yield of more than 4%. To illustrate this, I will use The Dividend Income Accelerator Portfolio, which I am currently constructing and sharing here on Seeking Alpha, as a practical example.

The current composition of The Dividend Income Accelerator Portfolio not only stands out for its reduced risk level through its extensive diversification across sectors and industries, and its inclusion of companies that pay sustainable dividends, it also effectively integrates both dividend income and dividend growth....

For further details see: