ARCC - Strategically Building A $100000 Dividend Portfolio With Only 2 ETFs And 5 Stocks

2024-01-25 18:00:00 ET

Summary

• In today’s article, I will demonstrate how to strategically distribute the amount of $100,000 across 2 ETFs and 5 individual companies.
• The portfolio achieves a reduced risk level by minimizing company-specific and sector-specific concentration risks, and by predominantly featuring large-cap value companies.
• Apple (with 5.00%), AbbVie (4.23%), Visa (4%), Realty Income (4%), and Main Street Capital (4%) represent the largest holdings of this portfolio. Each company exhibits an attractive risk-reward profile.
• The portfolio reaches a Weighted Average Dividend Yield [TTM] of 3.70%, accompanied by a 5-Year Dividend Growth Rate [CAGR] of 8.49%, effectively combining dividend income and dividend growth.

Investment Thesis

When constructing an investment portfolio from scratch, investors often underestimate the associated risk level with their respective choices. An investment portfolio with a disproportionally high-risk level suggests that the probability of reaching successful investment results is comparatively low.

In today's article, I will outline a strategy for allocating $100,000 among two ETFs and five individual companies. The goal of this dividend portfolio is to provide you with an attractive combination of dividend income and dividend growth while minimizing risks, significantly enhancing your chances for successful investment results.

Moreover, I will demonstrate that the constructed dividend portfolio is diversified across companies and sectors, suggesting a reduced company and sector-specific concentration risk, which leads to a lowered overall risk level for this dividend portfolio....

For further details see: