Dividend Oriented Portfolio
Investors interested in constructing a dividend oriented portfolio will find this blog of interest. The thirteen (13) ETFs plus SHY that make up this dividend driven portfolio provide global diversification as well as inflation protection. Within this group of securities we have characteristics found in the “Swensen Six” and “IVY 10.”
Tranche Momentum Recommendations: To provide additional diversification, I selected four (4) as the maximum number of assets for each offset or tranche. REM, JNK, and HYG are consistently recommended over the past 12 trading days and therefore garner approximately 70% of the total portfolio.
To come up with the following rankings I used the “default” settings in the Main Menu. If you look over to the right, not one ETF is priced below its respective 195-Day EMA. Therefore, no ETFs are up for immediate sale. There are six warning signals coming from the “Golden Cross.”
Position Sizing Recommendations: The recommended portfolio is more aggressive than the current portfolio. [Keep in mind this is a sample portfolio.] If all the recommendations are followed, shares are added to every recommendation except for VTI. While VTI is not particularly a high yielding ETF, it is included in this portfolio so there is broad exposure to the U.S. Equities market.
If this were my portfolio I would build out REM, JNK, and HYG to full recommended positions.
Since this is a sample portfolio with no money actually invested, I’ll forgo the manual risk adjustment worksheet.
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Lowell,
I can’t help but wonder if high grade corporate debt should be included by adding LQD? Jim Paulsen with Wells Fargo recently posted an article suggesting that, at this time, corporate debt would be less impacted by rising interest rates. I don’t have a link I can give you but if your interested in Jim’s post let me know.
Richard
Richard,
Yes, LQD should be an option and I just added it. It did not make any of the recommendation lists, but it is now part of the dividend driven portfolio.
Lowell
Lowell,
Thanks for the reply,
Richard
Lowell,
Why both HYG and JNK? Using both tends to bring you near 50% in the category.
Bob W.
Bob,
I did a quick check on the top 10 holdings and there does seem to be quite a bit of overlap between JNK and HYG. Need to check for more details. JNK is a little cheaper so if I make a decision I will go with JNK. Both fit into the small-cap blend asset class.
Lowell