Dividend Income Portfolio
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
| Position | Category/Sector | Weight |
|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | High Yield Bonds | 33.33% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | All Cap Equities, Dividend | 33.33% |
VNQ Vanguard Real Estate ETF | REIT | 33.33% |
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 Quarterly
The earliest data available for this chart is Apr 11, 2007, corresponding to the inception date of HYG
Returns By Period
As of Nov 21, 2024, the Dividend Income Portfolio returned 9.51% Year-To-Date and 6.84% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y (annualized) | 10Y (annualized) | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 24.05% | 1.08% | 11.50% | 30.38% | 13.77% | 11.13% |
| Dividend Income Portfolio | 9.51% | 0.34% | 11.39% | 19.77% | 6.01% | 6.84% |
| Portfolio components: | ||||||
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 8.59% | 0.50% | 6.74% | 13.19% | 3.63% | 3.94% |
VNQ Vanguard Real Estate ETF | 10.50% | -0.82% | 15.80% | 24.89% | 4.61% | 6.01% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | 8.98% | 1.31% | 11.43% | 20.69% | 8.64% | 9.76% |
Monthly Returns
The table below presents the monthly returns of Dividend Income Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | -2.97% | 0.08% | 2.69% | -4.15% | 2.61% | -0.03% | 6.84% | 2.78% | 2.12% | -1.81% | 9.51% | ||
| 2023 | 5.91% | -3.83% | -0.93% | 0.39% | -4.46% | 4.28% | 2.72% | 0.03% | -5.26% | -3.00% | 8.15% | 7.20% | 10.49% |
| 2022 | -3.20% | -1.47% | 2.71% | -3.87% | 0.83% | -7.07% | 6.22% | -4.36% | -8.57% | 6.05% | 4.78% | -3.42% | -12.04% |
| 2021 | 0.08% | 3.66% | 5.15% | 3.59% | 1.19% | 0.68% | 0.89% | 1.32% | -2.91% | 3.30% | -2.19% | 6.61% | 23.07% |
| 2020 | -0.42% | -6.36% | -16.64% | 8.04% | 2.06% | 0.89% | 3.32% | 0.95% | -2.17% | 0.30% | 8.87% | 3.03% | -0.73% |
| 2019 | 8.28% | 1.97% | 2.30% | 1.11% | -2.74% | 3.77% | 1.12% | 0.20% | 2.25% | 0.23% | 0.41% | 1.98% | 22.58% |
| 2018 | -0.37% | -5.09% | 1.26% | 0.74% | 1.72% | 2.13% | 1.83% | 1.00% | -0.74% | -3.15% | 2.16% | -6.22% | -5.07% |
| 2017 | 0.38% | 2.31% | -1.12% | 0.30% | -0.14% | 0.88% | 1.35% | -0.67% | 1.11% | -0.10% | 2.07% | 0.10% | 6.60% |
| 2016 | -2.24% | 0.83% | 7.07% | 1.83% | 1.18% | 4.09% | 2.69% | -0.83% | 0.12% | -2.90% | 1.64% | 3.28% | 17.63% |
| 2015 | 1.82% | 0.25% | 0.16% | -1.45% | -0.16% | -2.39% | 2.13% | -3.66% | -0.36% | 5.71% | -0.86% | -0.73% | 0.15% |
| 2014 | 0.63% | 3.57% | 1.21% | 1.71% | 1.60% | 1.71% | -2.07% | 3.36% | -3.56% | 5.51% | 0.72% | 1.28% | 16.47% |
| 2013 | 3.54% | 1.41% | 2.72% | 3.65% | -3.26% | -0.74% | 3.15% | -4.44% | 2.58% | 3.90% | -0.91% | 0.62% | 12.45% |
Expense Ratio
Dividend Income Portfolio features an expense ratio of 0.38%, falling within the medium range. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Dividend Income Portfolio is 26, suggesting that the investment has average results relative to other portfolios in terms of risk-adjusted performance. This ranking is determined by the cumulative values of the indicators listed below.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 2.87 | 4.48 | 1.56 | 2.66 | 21.54 |
VNQ Vanguard Real Estate ETF | 1.48 | 2.09 | 1.26 | 0.89 | 5.33 |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | 1.31 | 1.96 | 1.24 | 2.28 | 4.76 |
Dividends
Dividend yield
Dividend Income Portfolio provided a 4.88% dividend yield over the last twelve months.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 4.88% | 4.76% | 4.48% | 3.47% | 4.37% | 4.06% | 4.87% | 4.19% | 4.40% | 4.42% | 4.18% | 4.57% |
| Portfolio components: | ||||||||||||
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 6.36% | 5.75% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
VNQ Vanguard Real Estate ETF | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
PEY Invesco High Yield Equity Dividend Achievers™ ETF | 4.45% | 4.58% | 4.21% | 3.82% | 4.30% | 3.79% | 4.34% | 3.22% | 3.12% | 3.44% | 3.24% | 3.27% |
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.
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 59.63%, occurring on Mar 6, 2009. Recovery took 723 trading sessions.
The current Dividend Income Portfolio drawdown is 1.10%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -59.63% | Apr 26, 2007 | 470 | Mar 6, 2009 | 723 | Jan 18, 2012 | 1193 |
| -35.33% | Feb 18, 2020 | 25 | Mar 23, 2020 | 223 | Feb 9, 2021 | 248 |
| -19.09% | Jan 5, 2022 | 192 | Oct 10, 2022 | 443 | Jul 17, 2024 | 635 |
| -11.45% | Sep 14, 2018 | 70 | Dec 24, 2018 | 33 | Feb 12, 2019 | 103 |
| -10.13% | Feb 6, 2015 | 256 | Feb 11, 2016 | 23 | Mar 16, 2016 | 279 |
Volatility
Volatility Chart
The current Dividend Income Portfolio volatility is 2.23%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
Diversification
Asset Correlations Table
| HYG | VNQ | PEY | |
|---|---|---|---|
| HYG | 1.00 | 0.49 | 0.54 |
| VNQ | 0.49 | 1.00 | 0.70 |
| PEY | 0.54 | 0.70 | 1.00 |