Asset Allocation
Benchmark: S&P 500 Index · Rebalance: Every 3 months
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 Aug 4, 2026, the Dividend-Paying Stocks Portfolio returned 13.28% Year-To-Date and 10.41% of annualized return in the last 10 years.
| Position | 1D | 1M | 6M | YTD | 1Y | 3Y* | 5Y* | 10Y* | ALL TIME* |
|---|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 1.79% | 3.38% | 11.83% | 13.02% | 22.22% | 19.99% | 11.80% | 13.49% | 8.15% |
Portfolio Dividend-Paying Stocks Portfolio | 1.84% | -0.69% | 3.98% | 13.28% | 14.42% | 16.43% | 10.17% | 10.41% | 12.94% |
| Portfolio components: | |||||||||
APD Air Products and Chemicals, Inc. | 0.60% | -6.20% | 7.35% | 21.68% | 5.25% | 3.84% | 2.97% | 9.70% | 11.77% |
CL Colgate-Palmolive Company | 2.95% | -2.18% | 0.52% | 19.23% | 13.78% | 9.19% | 5.73% | 4.62% | 10.31% |
EMR Emerson Electric Co. | 2.58% | 14.23% | 5.26% | 20.63% | 13.18% | 20.65% | 11.68% | 14.25% | 9.35% |
IBM International Business Machines Corporation | 3.91% | -18.78% | -19.05% | -19.57% | -4.29% | 21.55% | 15.94% | 8.61% | 7.15% |
JNJ Johnson & Johnson | 0.20% | -3.08% | 10.58% | 24.55% | 52.77% | 18.07% | 11.06% | 10.43% | 12.26% |
KMB Kimberly-Clark Corporation | 3.73% | -2.75% | 13.62% | 13.49% | -12.10% | -0.48% | 0.25% | 2.06% | 10.95% |
KO The Coca-Cola Company | -0.35% | 2.88% | 14.08% | 25.47% | 29.08% | 15.91% | 12.18% | 10.53% | 12.25% |
MMM 3M Company | 2.38% | 13.10% | 17.68% | 14.43% | 25.00% | 31.17% | 5.57% | 5.34% | 8.48% |
PG The Procter & Gamble Company | 2.10% | -1.52% | -3.27% | 5.58% | 1.06% | 1.04% | 3.38% | 8.52% | 10.12% |
WMT Walmart Inc. | 0.76% | -0.26% | -12.31% | 0.52% | 12.94% | 29.73% | 19.64% | 18.34% | 18.36% |
Monthly Returns
Based on dividend-adjusted daily data since Jan 2, 1987, Dividend-Paying Stocks Portfolio's average daily return is +0.05%, while the average monthly return is +1.10%. 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% | 3.45% | -0.01% | 1.78% | 13.28% | ||||
| 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
This portfolio has an annualized alpha of 5.85%, beta of 0.75, and R2 of 0.70 versus S&P 500 Index. Calculated based on daily prices since January 02, 1987.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (88.94%) than losses (69.45%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 5.85% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Alpha
- 5.85%
- Beta
- 0.75
- R²
- 0.70
- Upside Capture
- 88.94%
- Downside Capture
- 69.45%
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 20 for risk / return — above 20% of Portfolios peers on PortfoliosLab. Its historical combined result is below most peers; review the five component ranks for context.
Risk / Return Metrics
The table below presents risk-adjusted performance metrics for Dividend-Paying Stocks 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.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 1.10 | 1.73 | -0.64 |
| Sortino ratioReturn per unit of downside risk | 1.59 | 2.40 | -0.81 |
| Omega ratioGain probability vs. loss probability | 1.20 | 1.31 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.55 | 2.45 | -0.90 |
| Martin ratioReturn relative to average drawdown | 3.83 | 10.40 | -6.57 |
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. | 47 | 0.20 | 0.50 | 1.06 | 0.24 | 0.57 |
CL Colgate-Palmolive Company | 59 | 0.61 | 1.03 | 1.11 | 0.82 | 1.63 |
EMR Emerson Electric Co. | 55 | 0.42 | 0.78 | 1.10 | 0.56 | 1.36 |
IBM International Business Machines Corporation | 38 | -0.09 | 0.21 | 1.03 | -0.11 | -0.27 |
JNJ Johnson & Johnson | 95 | 2.91 | 3.95 | 1.50 | 4.84 | 13.39 |
KMB Kimberly-Clark Corporation | 24 | -0.45 | -0.43 | 0.94 | -0.41 | -0.60 |
KO The Coca-Cola Company | 86 | 1.57 | 2.49 | 1.29 | 3.71 | 8.08 |
MMM 3M Company | 69 | 0.94 | 1.54 | 1.18 | 1.34 | 2.89 |
PG The Procter & Gamble Company | 41 | 0.05 | 0.22 | 1.02 | 0.07 | 0.12 |
WMT Walmart Inc. | 58 | 0.53 | 0.91 | 1.11 | 0.68 | 1.72 |
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Dividends
Dividend yield
Dividend-Paying Stocks Portfolio provided a 2.34% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.34% | 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. | 2.44% | 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 | 2.27% | 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. | 1.38% | 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 | 2.86% | 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 | 2.06% | 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 | 4.55% | 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 | 2.40% | 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 | 1.66% | 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 | 2.90% | 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. | 0.87% | 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 2.71%.
Drawdown | Fall | Recovery | Underwater | Related event |
|---|---|---|---|---|
-35.62%Mar 2009 | 9mo 6d | 8mo 12d | 1y 5moJun 2008 - Nov 2009 | Financial crisis2007–2009 |
-35.60%Oct 1987 | 1mo 24d | 1y 8mo | 1y 10moAug 1987 - Jun 1989 | Black Monday1987 |
-28.65%Mar 2000 | 2mo | 8mo 29d | 10mo 29dJan 2000 - Dec 2000 | Dot-com crash2000–2002 |
-27.63%Mar 2020 | 1mo 15d | 4mo 17d | 6mo 2dFeb 2020 - Aug 2020 | COVID crash2020 |
-21.38%Jul 2002 | 4mo 4d | 1y 4mo | 1y 8moMar 2002 - Dec 2003 | Dot-com crash2000–2002 |
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-weighted collection of defensive consumer names, industrials, healthcare, materials, and IBM: a bet on durable businesses whose correlations remain politely low.
The numbers
- The 10.0 effective assets out of 10 show no weight concentration.
- Diversification ratio is 2.00 over 1Y and 1.49 since inception, ranking around the 90th and 77th percentiles; the benefit is real, though less dramatic over longer history.
- Mean pairwise correlation is 0.37, with no pair above 0.57.
The good
- Equal weights prevent Procter & Gamble (PG), Coca-Cola (KO), or any other familiar defensive name from quietly becoming the portfolio.
- IBM provides the least correlated sleeve, while Air Products (APD), Emerson Electric (EMR), and Johnson & Johnson (JNJ) broaden the earnings drivers.
The bad
- Consumer defensives still occupy 50%, with PG, Colgate-Palmolive (CL), and Kimberly-Clark (KMB) especially overlapping.
- 3M (MMM) and EMR form a recognizable industrial cluster, so the sector labels imply slightly more independence than the correlations deliver.
The ugly
- An inflationary shock could pressure consumer margins while rates and cyclicality stress industrials, making the apparently separate clusters move together.
Next steps
- Portfolios with this structure are typically complemented by exposures whose risks sit outside corporate equities, since diversification benefits can compress precisely when correlations rise.
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 | 1.99 | 1.81 | 1.67 | 1.50 | 1.49 |
The portfolio has a diversification ratio of 1.49, in line with the typical range across portfolios.
Dividend-Paying Stocks Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.23 |
Correlation (3Y) Balances recent behavior with more history. | 0.41 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.53 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.62 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 1987 | 0.77 |
Benchmark Correlations
Correlation vs. S&P 500 Index. EMR has the highest benchmark correlation at 0.63, while KMB has the lowest at 0.40.
Asset Correlations Table
| IBM | WMT | KMB | JNJ | APD | EMR | CL | KO | MMM | PG | |
|---|---|---|---|---|---|---|---|---|---|---|
| IBM | 1.00 | 0.32 | 0.26 | 0.31 | 0.34 | 0.41 | 0.28 | 0.29 | 0.39 | 0.29 |
| WMT | 0.32 | 1.00 | 0.31 | 0.35 | 0.30 | 0.31 | 0.34 | 0.37 | 0.34 | 0.37 |
| KMB | 0.26 | 0.31 | 1.00 | 0.35 | 0.32 | 0.28 | 0.49 | 0.39 | 0.35 | 0.49 |
| JNJ | 0.31 | 0.35 | 0.35 | 1.00 | 0.32 | 0.31 | 0.40 | 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 | 0.41 | 0.31 | 0.28 | 0.31 | 0.46 | 1.00 | 0.30 | 0.32 | 0.50 | 0.32 |
| CL | 0.28 | 0.34 | 0.49 | 0.40 | 0.33 | 0.30 | 1.00 | 0.46 | 0.34 | 0.57 |
| KO | 0.29 | 0.37 | 0.39 | 0.43 | 0.34 | 0.32 | 0.46 | 1.00 | 0.37 | 0.50 |
| MMM | 0.39 | 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