High-Yield Stock Portfolio Overview
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(Additional
Performance Data)
Subscribers will have access to weekly transactions (both purchases and the much-more-rare sales) as well as a list of portfolio holdings and trade confirmations.
This is a model stock portfolio
comprised of real investments ($12.50 per week starting in 2023) made on the first trading day of each week and has been featured in my videos which can be found on my YouTube channel.
I originally started the portfolio to show my accounting students that we could use the accounting concepts we were learning and apply them to find companies in which to invest. And I started with a low investment amount of $12.50 per week to demonstrate that a new investor doesn't need a lot of money to build a diversified portfolio.
And to replicate the fact that beginner investors invariably invest more as they advance through their career, once a year we boost the weekly investment by the rate of inflation. For example, in the second year of this portfolio we boosted the weekly investment by 39-cents.
Stocks in this portfolio generally have much higher dividend-yields than the stocks found in our Dividend-Growth Stock Portfolio, but the stocks in this portfolio usually have a lower potential for substantial future growth in those dividend payments since the payments are already higher. Therefore this portfolio would likely be best suited for those nearing retirement or in retirement.
Two Strategies Used in This Stock Portfolio:
- Strategy 1:emphasizes a high dividend-yield over dividend growth
- Strategy 2: also features stocks paying higher dividend yields, but places a bit more emphasis on recent dividend growth than strategy 1 in an attempt to try to get the best of both worlds: high-yield and dividend growth
To be eligible to make our weekly purchase list, stocks must have the following characteristics at time of purchase:
- Are of high-quality (must have a Quality Grade of B- or better at time of purchase)
- Have strong competitive advantages (must have a Competitive Advantage Grade of B- or better at time of purchase)
- Have a strong management team
- Have earnings forecast to increase 5.0% or more over the next 12 months which increases the chance of the dividend being raised
- Are financially sound
- Have recently increased the dividend
- Have a suitable margin of safety based on the company's risk rating
Each week on Monday, we take the weekly investment, plus any dividends we have received, and invest in the 8 top-rated dividend-growth stocks (4 from each of the above strategies, which usually includes stocks appearing in both strategy).
Each week the list of top-rated stocks changes, so the stocks we invest in each week varies.
Selling for this portfolio doesn't occur frequently, but when it does, it is usually due to one of the following reasons:
- the company becomes overvalued, or
- the company cuts its dividends, or
- the company's dividend and quality metrics fall out of the top 50%
Besides this real-time tracking portfolio, I'm also investing in these same stocks in my personal accounts, so I do have skin in the game as the saying goes.
Investors following this portfolio might want to consider adding exposure to the technology sector. My ideas can be found here.
As always, keep in mind that
investing in individual stocks or mutual funds involves risk.
Past performance is never a guarantee of future performance.
To see the portfolio's recent transactions, portfolio holdings, and trade confirmations, click the green arrow below or at the top of the page.
Performance
Since Inception1 |
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| Dividend-Growth Stock Portfolio Average Annual Return: |
29.10% |
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| Portfolio Yield Based on Original Investment |
5.04% |
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| Portfolio Yield Based Assuming All Stocks Purchased at Today's Prices |
4.14% |
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