Asset Allocation
Find the right asset allocation for Dividend-Paying Stocks Portfolio
Add portfolio to the optimizer to find optimal allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
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Performance Chart
The chart shows the growth of an initial investment of $10,000 in Dividend-Paying Stocks 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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Returns By Period
As of Jun 5, 2026, the Dividend-Paying Stocks Portfolio returned 6.60% Year-To-Date and 10.10% of annualized return in the last 10 years.
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 0.41% | 4.48% | 10.79% | 10.60% | 27.02% | 21.07% | 12.39% | 13.65% |
Portfolio Dividend-Paying Stocks Portfolio | 0.09% | 1.69% | 6.60% | 4.33% | 8.66% | 15.96% | 8.86% | 10.10% |
| Portfolio components: | ||||||||
APD Air Products and Chemicals, Inc. | 0.21% | -6.94% | 16.06% | 9.59% | 3.65% | 2.98% | 1.01% | 9.52% |
CL Colgate-Palmolive Company | 0.27% | -1.42% | 9.03% | 11.02% | -3.27% | 6.21% | 2.68% | 4.13% |
EMR Emerson Electric Co. | 0.84% | 3.07% | 7.88% | 4.79% | 18.72% | 22.22% | 9.85% | 13.05% |
IBM International Business Machines Corporation | -1.26% | 32.73% | 3.21% | -0.74% | 16.56% | 35.83% | 21.09% | 12.12% |
JNJ Johnson & Johnson | 2.21% | 1.74% | 11.48% | 13.94% | 52.64% | 16.30% | 9.61% | 9.99% |
KMB Kimberly-Clark Corporation | -0.31% | -2.81% | -5.21% | -7.76% | -28.72% | -8.08% | -2.88% | 0.25% |
KO The Coca-Cola Company | -2.46% | -2.12% | 10.64% | 9.79% | 10.76% | 11.41% | 9.65% | 8.76% |
MMM 3M Company | 0.74% | 7.52% | -3.65% | -8.87% | 6.01% | 26.96% | 1.17% | 4.05% |
PG The Procter & Gamble Company | 0.42% | -2.84% | -0.32% | -1.73% | -12.73% | 1.40% | 3.30% | 8.37% |
WMT Walmart Inc. | 0.73% | -9.81% | 6.10% | 3.14% | 19.50% | 34.55% | 21.56% | 19.42% |
Monthly Returns
Based on dividend-adjusted daily data since Jan 5, 1987, Dividend-Paying Stocks Portfolio's average daily return is +0.05%, while the average monthly return is +1.09%. At this rate, an investment would double in approximately 5.3 years.
Historically, 65% of months were positive and 35% were negative. The best month was Oct 1998 with a return of +17.2%, while the worst month was Oct 1987 at -20.2%. The longest winning streak lasted 8 consecutive months, and the longest losing streak was 6 months.
On a daily basis, Dividend-Paying Stocks Portfolio closed higher 54% of trading days. The best single day was Oct 13, 2008 with a return of +10.1%, while the worst single day was Oct 19, 1987 at -20.6%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 6.56% | 4.97% | -7.05% | 1.66% | 1.80% | -0.93% | 6.60% | ||||||
| 2025 | 6.58% | 2.90% | -3.00% | -2.56% | 4.68% | 0.90% | -1.60% | 1.21% | 0.37% | 0.81% | 2.74% | -3.03% | 9.92% |
| 2024 | 0.72% | 2.35% | 4.46% | -1.09% | 3.77% | 1.50% | 5.81% | 5.60% | 2.14% | -3.66% | 7.23% | -5.62% | 24.84% |
| 2023 | -3.46% | -4.54% | 3.50% | 2.74% | -6.00% | 6.79% | 2.46% | -0.43% | -4.70% | -0.08% | 3.33% | 2.42% | 1.15% |
| 2022 | -2.26% | -5.03% | 2.87% | 1.36% | -1.39% | -2.71% | 2.20% | -3.57% | -7.53% | 10.29% | 8.74% | -1.31% | 0.16% |
| 2021 | -3.72% | -1.17% | 7.87% | 1.39% | 2.84% | -0.78% | 1.86% | 0.17% | -5.35% | 2.96% | -3.44% | 9.37% | 11.50% |
Benchmark Metrics
Dividend-Paying Stocks Portfolio has an annualized alpha of 5.72%, beta of 0.76, and R2 of 0.70 versus S&P 500 Index. Calculated based on daily prices since January 05, 1987.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (88.97%) than losses (70.10%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 5.72% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Alpha
- 5.72%
- Beta
- 0.76
- R²
- 0.70
- Upside Capture
- 88.97%
- Downside Capture
- 70.10%
Expense Ratio
Dividend-Paying Stocks Portfolio has an expense ratio of 0.00%, meaning no management fees are charged. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Return for Risk
Risk / Return Rank
Dividend-Paying Stocks Portfolio ranks 9 for risk / return — in the bottom 9% of Portfolios on our site. This means you're taking on significantly more risk than the returns justify. Consider whether the potential upside is worth the volatility, or explore alternatives with better risk / return profiles.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for Dividend-Paying Stocks Portfolio and compares them with S&P 500 Index.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 0.73 | 2.28 | -1.55 |
| Sortino ratioReturn per unit of downside risk | 1.11 | 3.12 | -2.02 |
| Omega ratioGain probability vs. loss probability | 1.13 | 1.41 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | 0.93 | 2.98 | -2.05 |
| Martin ratioReturn relative to average drawdown | 2.39 | 13.78 | -11.39 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
APD Air Products and Chemicals, Inc. | 44 | 0.15 | 0.40 | 1.05 | 0.16 | 0.41 |
CL Colgate-Palmolive Company | 33 | -0.16 | -0.08 | 0.99 | -0.18 | -0.29 |
EMR Emerson Electric Co. | 58 | 0.63 | 1.05 | 1.13 | 0.80 | 1.77 |
IBM International Business Machines Corporation | 54 | 0.43 | 0.86 | 1.12 | 0.54 | 1.17 |
JNJ Johnson & Johnson | 94 | 3.16 | 4.59 | 1.57 | 4.83 | 14.43 |
KMB Kimberly-Clark Corporation | 4 | -1.16 | -1.48 | 0.79 | -0.97 | -1.51 |
KO The Coca-Cola Company | 62 | 0.67 | 1.13 | 1.12 | 1.37 | 2.68 |
MMM 3M Company | 47 | 0.23 | 0.52 | 1.06 | 0.32 | 0.72 |
PG The Procter & Gamble Company | 11 | -0.70 | -0.90 | 0.90 | -0.82 | -1.44 |
WMT Walmart Inc. | 66 | 0.83 | 1.30 | 1.17 | 1.24 | 4.17 |
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Dividends
Dividend yield
Dividend-Paying Stocks Portfolio provided a 2.49% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.49% | 2.54% | 3.85% | 3.06% | 2.89% | 2.64% | 2.75% | 2.77% | 3.20% | 2.69% | 2.94% | 3.03% |
| Portfolio components: | ||||||||||||
APD Air Products and Chemicals, Inc. | 2.54% | 2.89% | 1.83% | 2.56% | 2.10% | 1.97% | 1.96% | 1.97% | 2.75% | 2.32% | 2.39% | 2.49% |
CL Colgate-Palmolive Company | 2.46% | 2.61% | 2.18% | 2.40% | 2.36% | 2.10% | 2.05% | 2.48% | 2.79% | 2.11% | 2.37% | 2.25% |
EMR Emerson Electric Co. | 1.54% | 1.61% | 1.70% | 2.14% | 2.15% | 2.18% | 2.49% | 2.58% | 3.26% | 2.76% | 3.42% | 3.94% |
IBM International Business Machines Corporation | 2.23% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
JNJ Johnson & Johnson | 2.30% | 2.48% | 3.40% | 3.00% | 2.52% | 2.45% | 2.53% | 2.57% | 2.74% | 2.38% | 2.73% | 2.87% |
KMB Kimberly-Clark Corporation | 5.36% | 5.00% | 3.72% | 3.88% | 3.42% | 3.19% | 3.17% | 3.00% | 3.51% | 3.22% | 3.22% | 2.77% |
KO The Coca-Cola Company | 2.68% | 2.92% | 3.12% | 3.12% | 2.77% | 2.84% | 2.99% | 2.89% | 3.29% | 3.23% | 3.38% | 3.07% |
MMM 3M Company | 1.98% | 1.82% | 16.27% | 5.49% | 4.97% | 3.33% | 3.36% | 3.26% | 2.86% | 2.00% | 2.49% | 2.72% |
PG The Procter & Gamble Company | 3.03% | 2.91% | 2.36% | 2.55% | 2.38% | 2.08% | 2.24% | 2.37% | 3.09% | 2.98% | 3.18% | 3.31% |
WMT Walmart Inc. | 0.82% | 0.84% | 0.92% | 1.45% | 1.58% | 1.52% | 1.50% | 1.78% | 2.23% | 2.07% | 2.89% | 3.20% |
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-Paying Stocks 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-Paying Stocks Portfolio was 35.62%, occurring on Mar 9, 2009. Recovery took 176 trading sessions.
The current Dividend-Paying Stocks Portfolio drawdown is 5.26%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Financial crisis2007–2009 | -35.62%Mar 2009 | 9mo 6d | 8mo 12d | 1y 5moJun 2008 - Nov 2009 |
Black Monday1987 | -35.60%Oct 1987 | 1mo 24d | 1y 8mo | 1y 10moAug 1987 - Jun 1989 |
Dot-com crash2000–2002 | -28.65%Mar 2000 | 2mo | 8mo 29d | 10mo 29dJan 2000 - Dec 2000 |
COVID crash2020 | -27.63%Mar 2020 | 1mo 15d | 4mo 17d | 6mo 2dFeb 2020 - Aug 2020 |
Dot-com crash2000–2002 | -21.38%Jul 2002 | 4mo 4d | 1y 4mo | 1y 8moMar 2002 - Dec 2003 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
Thesis
The portfolio is a 10-stock equal-weight bet on defensive earnings streams, with a few industrial and technology sleeves that keep it from being just a grocery-list version of the consumer-staples trade.
The numbers
- The diversification ratio is 2.02 over 1Y and 1.49 in inception data, both strong by platform standards at the 89.7th and 75.7th percentiles, respectively.
- Effective asset count is 10.0 of 10, so the weight structure is tidy; the math says this is broad ownership, not one hidden hero.
- Average pairwise correlation is 0.37, which is low enough to matter, though several consumer staples names still behave like cousins.
What works
- The portfolio mixes Consumer Defensive, Industrials, Basic Materials, Technology, and Healthcare, so the earnings drivers are not all the same quarterly sermon.
- IBM, WMT, APD, and JNJ sit in separate clusters, which helps keep portfolio-level movement from becoming a single-factor impression.
- To be fair, the 1Y diversification is better than the long-run figure, so the sleeve interactions have recently been doing some work.
What does not
- Procter & Gamble (PG), Coca-Cola (KO), Clorox (CL), and Kimberly-Clark (KMB) form a familiar staples knot; their correlations around 0.48-0.57 are not fatal, just repetitive.
- Emerson Electric (EMR) and 3M (MMM) also travel together, so the industrial piece is thinner than the ticker count suggests.
Stress Scenario
- A recession-flavored slowdown with sticky input costs would press the staples cluster and the industrial cluster at the same time, making the correlation structure look more unified than it appears in normal markets.
Worth knowing
- The portfolio’s strongest diversification benefit comes from cross-sector mixing, not from especially uncorrelated individual names.
- Portfolios with this profile are usually complemented by exposures whose return drivers are less tied to defensive U.S. consumer demand and steady industrial capex.
Diversification Metrics
Number of Effective Assets
The portfolio contains 10 assets, with an effective number of assets of 10.00, 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 | 2.02 | 1.80 | 1.65 | 1.49 | 1.49 |
The portfolio has a diversification ratio of 1.49, in line with the typical range across portfolios. There's room to improve by adding less correlated assets.
Dividend-Paying Stocks Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.45 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.56 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Jan 5, 1987 | 0.78 |
Benchmark Correlations
Correlation vs. S&P 500 Index. EMR has the highest benchmark correlation at 0.63, while KMB has the lowest at 0.41.
Asset Correlations Table
| IBM | WMT | KMB | JNJ | APD | EMR | CL | KO | MMM | PG | |
|---|---|---|---|---|---|---|---|---|---|---|
| IBM | 1.00 | 0.32 | 0.26 | 0.31 | 0.34 | 0.42 | 0.28 | 0.29 | 0.40 | 0.29 |
| WMT | 0.32 | 1.00 | 0.31 | 0.35 | 0.30 | 0.32 | 0.34 | 0.37 | 0.34 | 0.37 |
| KMB | 0.26 | 0.31 | 1.00 | 0.35 | 0.32 | 0.29 | 0.48 | 0.39 | 0.35 | 0.49 |
| JNJ | 0.31 | 0.35 | 0.35 | 1.00 | 0.32 | 0.31 | 0.39 | 0.43 | 0.37 | 0.45 |
| APD | 0.34 | 0.30 | 0.32 | 0.32 | 1.00 | 0.46 | 0.33 | 0.34 | 0.45 | 0.33 |
| EMR | 0.42 | 0.32 | 0.29 | 0.31 | 0.46 | 1.00 | 0.30 | 0.33 | 0.50 | 0.32 |
| CL | 0.28 | 0.34 | 0.48 | 0.39 | 0.33 | 0.30 | 1.00 | 0.46 | 0.34 | 0.57 |
| KO | 0.29 | 0.37 | 0.39 | 0.43 | 0.34 | 0.33 | 0.46 | 1.00 | 0.37 | 0.50 |
| MMM | 0.40 | 0.34 | 0.35 | 0.37 | 0.45 | 0.50 | 0.34 | 0.37 | 1.00 | 0.38 |
| PG | 0.29 | 0.37 | 0.49 | 0.45 | 0.33 | 0.32 | 0.57 | 0.50 | 0.38 | 1.00 |
Find what Dividend-Paying Stocks Portfolio is missing
See which holdings overlap, where Dividend-Paying Stocks Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification