TCPC - Strategic Allocation For A $100000 Dividend Income Portfolio With A Sustainable Dividend Yield

2024-04-04 18:00:00 ET

Summary

• I will demonstrate how you could allocate the amount of $100,000 among the 3 ETFs and 18 individual companies that are currently part of The Dividend Income Accelerator Portfolio.
• Investing in the selected ETFs and companies at their current price levels would result in a portfolio with a Weighted Average Dividend Yield [TTM] of 4.44%.
• The portfolio showcases significant potential for dividend growth, evidenced by 19 of the 21 selections exhibiting positive 3-year Dividend Growth Rates [CAGR], with four even achieving double-digit growth rates.

Investment Thesis

Even though dividend income-producing ETFs such as the Schwab U.S. Dividend Equity ETF ( SCHD ) have significantly underperformed the S&P 500 ( SP500 ) in the past 12-month period (while the Schwab U.S. Dividend Equity ETF has shown a Total Return of 16.42%, the S&P 500 has shown a performance of 32.31% within the same time period), I continue to believe that investing in dividend income-producing ETFs and individual companies is the most reliable way of increasing wealth.

For this reason, in today's article, I will demonstrate how you could allocate the amount of $100,000 by following the current composition of The Dividend Income Accelerator Portfolio, which I have been documenting here on Seeking Alpha since the end of August 2023....

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