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Dividend Income Portfolio
Performance
Return for Risk
Dividends
Drawdowns
Volatility
Diversification

Dividend Income Portfolio

Currency in USD · Last updated Aug 3, 2026

The Dividend Income Portfolio is a well-rounded, income-focused investment strategy that combines three key income-producing asset classes: high-yield corporate bonds, real estate, and dividend-paying equities. By allocating equal portions to the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), the Vanguard Real Estate ETF (VNQ), and the Invesco High Yield Equity Dividend Achievers™ ETF (PEY), this portfolio aims to generate a consistent stream of income with an emphasis on dividends while offering the potential for capital appreciation.

The HYG component provides exposure to a diversified pool of high-yield corporate bonds, offering attractive yields. The VNQ allocation grants investors access to a wide range of real estate investment trusts (REITs), known for their steady income generation through dividends and property appreciation. Lastly, the PEY portion targets high-quality dividend-paying stocks with a history of increasing their dividends over time.

This portfolio is designed for investors seeking a balance between income generation through dividends and capital appreciation, with a higher risk tolerance than conservative income-focused investors.

Asset Allocation

HYG 33.33%PEY 33.33%VNQ 33.33%BondBondEquityEquityReal EstateReal Estate
PositionCategory/SectorTarget Weight
HYG
iShares iBoxx $ High Yield Corporate Bond ETF		High Yield Bonds
33.33%
PEY
Invesco High Yield Equity Dividend Achievers™ ETF		Mid Cap Value Equities, Dividend
33.33%
VNQ
Vanguard Real Estate ETF		REIT
33.33%

Benchmark: S&P 500 Index · Rebalance: Every 3 months

Portfolio Optimizer

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Performance

Performance Chart

The chart shows the growth of an initial investment of $10,000 in Dividend Income Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Every 3 months.

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Benchmark

Compare your portfolio against anything

Returns By Period

As of Aug 3, 2026, the Dividend Income Portfolio returned 12.28% Year-To-Date and 6.49% of annualized return in the last 10 years.

Position1D1M6MYTD1Y3Y*5Y*10Y*ALL TIME*
Benchmark
S&P 500 Index
0.70%0.09%7.94%9.41%20.07%17.84%11.25%13.26%8.09%
Portfolio
Dividend Income Portfolio
-0.45%0.96%8.76%12.28%14.83%9.96%5.04%6.49%6.15%
Portfolio components:
HYG
iShares iBoxx $ High Yield Corporate Bond ETF		0.01%-0.29%0.92%1.54%4.84%8.09%3.61%4.75%4.93%
PEY
Invesco High Yield Equity Dividend Achievers™ ETF		-0.80%2.19%14.34%21.78%24.40%11.82%8.46%9.05%6.66%
VNQ
Vanguard Real Estate ETF		-0.54%0.95%11.11%14.01%15.59%9.39%2.44%4.90%7.72%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Monthly Returns

Based on dividend-adjusted daily data since Apr 11, 2007, Dividend Income Portfolio's average daily return is +0.03%, while the average monthly return is +0.60%. At this rate, an investment would double in approximately 9.7 years.

Historically, 65% of months were positive and 35% were negative. The best month was Apr 2009 with a return of +20.6%, while the worst month was Oct 2008 at -19.7%. The longest winning streak lasted 11 consecutive months, and the longest losing streak was 4 months.

On a daily basis, Dividend Income Portfolio closed higher 54% of trading days. The best single day was Sep 18, 2008 with a return of +10.9%, while the worst single day was Mar 16, 2020 at -11.2%.

JanFebMarAprMayJunJulAugSepOctNovDecTotal
20263.24%2.13%-2.88%5.26%0.23%1.53%2.36%12.28%
20251.89%2.14%-2.01%-3.21%1.81%1.24%0.49%3.10%-0.19%-1.31%1.02%-0.73%4.12%
2024-2.97%0.08%2.69%-4.16%2.60%-0.03%6.84%2.78%1.97%-1.81%4.24%-5.47%6.20%
20235.91%-3.83%-0.93%0.39%-4.46%4.27%2.72%0.03%-5.26%-3.00%8.15%7.20%10.49%
2022-3.20%-1.46%2.71%-3.87%0.83%-7.07%6.22%-4.36%-8.57%6.05%4.78%-3.42%-12.04%
20210.08%3.66%5.15%3.59%1.19%0.68%0.89%1.32%-2.91%3.30%-2.19%6.61%23.07%

Benchmark Metrics

Dividend Income Portfolio has an annualized alpha of -0.68%, beta of 0.80, and R2 of 0.72 versus S&P 500 Index. Calculated based on daily prices since April 11, 2007.

  • This portfolio participated in 82.39% of S&P 500 Index downside but only 72.03% of its upside - more exposed to losses than it benefited from rallies.
Alpha
-0.68%
Beta
0.80
R²
0.72
Upside Capture
72.03%
Downside Capture
82.39%
See how alpha, beta & R² have trended over time →

Expense Ratio

Dividend Income Portfolio has an expense ratio of 0.39%, placing it in the medium range. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.

PEY
Invesco High Yield Equity Dividend Achievers™ ETF
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
VNQ
Vanguard Real Estate ETF

Return for Risk

Risk / Return Rank

Dividend Income Portfolio ranks 53 for risk / return — above 53% of Portfolios peers on PortfoliosLab. Its historical combined result is near the middle of the peer group.

Dividend Income Portfolio Risk / Return Rank: 5353
Overall Rank
Dividend Income Portfolio Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
Dividend Income Portfolio Sortino Ratio Rank: 5858
Sortino Ratio Rank
Dividend Income Portfolio Omega Ratio Rank: 4343
Omega Ratio Rank
Dividend Income Portfolio Calmar Ratio Rank: 6767
Calmar Ratio Rank
Dividend Income Portfolio Martin Ratio Rank: 5252
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

Risk / Return Metrics

The table below presents risk-adjusted performance metrics for Dividend Income Portfolio and compares them with S&P 500 Index.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

PortfolioBenchmarkDifference
Sharpe ratioReturn per unit of total volatility

1.57

1.42

+0.16

Sortino ratioReturn per unit of downside risk

2.38

1.98

+0.40

Omega ratioGain probability vs. loss probability

1.27

1.25

+0.02

Calmar ratioReturn relative to maximum drawdown

2.83

2.00

+0.83

Martin ratioReturn relative to average drawdown

9.13

8.49

+0.64

How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.

PositionRisk / Return RankSharpe ratioSortino ratioOmega ratioCalmar ratioMartin ratio
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
57
1.261.901.242.088.96
PEY
Invesco High Yield Equity Dividend Achievers™ ETF
70
1.632.491.282.627.66
VNQ
Vanguard Real Estate ETF
46
1.111.621.201.845.97

Sharpe Ratio

The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk. Learn how to interpret the Sharpe ratio.

The current Dividend Income Portfolio Sharpe ratio is 1.57 as of Aug 3, 2026 (the value is recalculated daily), calculated over the past 12 months.

Compared to the broad market, where average Sharpe ratios range from 1.19 to 2.01, this portfolio's current Sharpe ratio falls between the 25th and 75th percentiles. This indicates that its risk-adjusted performance is in line with the majority of portfolios, suggesting a balanced approach to risk and return—likely suitable for a wide range of investors.

The chart below shows the rolling Sharpe ratio of Dividend Income Portfolio compared to the selected benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.

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Dividends

Dividend yield

Dividend Income Portfolio provided a 4.39% dividend yield over the last twelve months.

PositionTTM20252024202320222021202020192018201720162015
Portfolio4.39%4.83%4.77%4.76%4.48%3.47%4.37%4.05%4.87%4.19%4.40%4.42%
Portfolio components:
HYG
iShares iBoxx $ High Yield Corporate Bond ETF		5.41%5.71%6.01%5.74%5.30%4.02%4.88%4.99%5.54%5.12%5.27%5.90%
PEY
Invesco High Yield Equity Dividend Achievers™ ETF		4.26%4.85%4.44%4.58%4.22%3.83%4.30%3.78%4.33%3.21%3.12%3.44%
VNQ
Vanguard Real Estate ETF		3.51%3.92%3.85%3.95%3.91%2.56%3.93%3.39%4.74%4.23%4.82%3.92%

Drawdowns

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.

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Worst Drawdowns

The table below displays the maximum drawdowns of the Dividend Income Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Dividend Income Portfolio was 59.62%, occurring on Mar 6, 2009. Recovery took 723 trading sessions.

The current Dividend Income Portfolio drawdown is 1.59%.

Drawdown

Fall

Recovery

Underwater

Related event

-59.62%Mar 2009
1y 10mo2y 10mo
4y 8moApr 2007 - Jan 2012
Financial crisis2007–2009
-35.33%Mar 2020
1mo 4d10mo 23d
11mo 27dFeb 2020 - Feb 2021
COVID crash2020
-19.08%Oct 2022
9mo 8d1y 9mo
2y 6moJan 2022 - Jul 2024
Bear market2022
-12.76%Apr 2025
4mo 10d5mo 6d
9mo 16dNov 2024 - Sep 2025
2025 selloff2025
-11.45%Dec 2018
3mo 11d1mo 20d
5mo 1dSep 2018 - Feb 2019
Rate-hike selloffLate 2018

Volatility

Volatility Chart

The chart below shows the rolling one-month volatility.

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Diversification

AI Analysis

The gist

The portfolio is an equal-weight bet on income-producing credit, property, and dividend equities, with the REIT and equity sleeves behaving like close relatives during stress.

The numbers

  • Effective asset count is 3.0/3, so the weights are cleanly spread, even if the risk drivers are less independent.
  • Diversification ratio is 1.10–1.16, only the 20th–27th percentile of platform portfolios: modest benefit, not much portfolio-level alchemy.
  • Mean correlation is 0.57, with the highest pair, Vanguard Real Estate ETF (VNQ) and Invesco High Yield Equity Dividend Achievers ETF (PEY), at 0.70.

The good

  • HYG, VNQ, and PEY are distinct instruments with different income mechanisms: credit spreads, property cash flows, and dividend equities.
  • HYG and VNQ are the least correlated pair at 0.49, providing some genuine separation.

The bad

  • VNQ and PEY form the portfolio’s main cluster, and their correlations make the three equal weights look more diversified than the underlying risk is.
  • VNQ and PEY account for the strongest portfolio relationships, at 0.91 and 0.89.

The ugly

  • A rate shock or growth scare could pressure property valuations, dividend equities, and high-yield spreads together. Income does not automatically mean independence.

Next steps

  • Portfolios with this profile are typically complemented by exposures whose drivers sit outside equity and credit markets, such as high-quality duration, commodities, or trend-following strategies.
AI-generated analysis. Not investment advice. Verify key facts independently.
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Diversification Metrics

Number of Effective Assets

The portfolio contains 3 assets, with an effective number of assets of 3.00, reflecting the diversification based on asset allocation. Your capital is spread almost evenly across your holdings, indicating a well-balanced allocation. Note that true diversification also depends on the correlations between assets — check the diversification ratio below.

Diversification Ratio
1Y
3Y
5Y
10Y
All Time
Diversification Ratio

1.16

1.11

1.12

1.10

1.11

The portfolio has a diversification ratio of 1.11, placing it in the bottom quartile across portfolios. The holdings provided limited volatility reduction when combined.

Dividend Income Portfolio correlation to the S&P 500 Index

Dividend Income Portfolio has a 0.36 correlation to S&P 500 Index over the trailing 12 months. This section compares each holding's correlation to the benchmark and to the portfolio.
Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.36

Correlation (3Y)
Balances recent behavior with more history.

0.53

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.67

Correlation (10Y)
Provides a long-term view across more market conditions.

0.69

Correlation (All Time)
Calculated using the full available price history since Apr 11, 2007

0.77

Benchmark Correlations

Correlation vs. S&P 500 Index. PEY has the highest benchmark correlation at 0.74, while HYG has the lowest at 0.65.

HYG
0.65
VNQ
0.65
PEY
0.74

Portfolio Correlations

Correlation vs. Dividend Income Portfolio. VNQ has the highest portfolio correlation at 0.91, while HYG has the lowest at 0.65.

HYG
0.65
PEY
0.89
VNQ
0.91

Asset Correlations Table

See how each holding historically moved in relation to the other holdings, the portfolio, and the selected benchmark.
HYGVNQPEY
HYG1.000.490.53
VNQ0.491.000.70
PEY0.530.701.00
Based on daily historical returns since Apr 11, 2007
Diversification Analysis

Find what Dividend Income Portfolio is missing

See which holdings overlap, where Dividend Income Portfolio is concentrated, and which low-correlation assets could fill the gaps.

Analyze Diversification