Our retirement portfolio dropped 1.16% in June and is up 9.13% for this year The S&P 500 index rose about 2.33% last month, while the Dividend Aristocrats index dropped -1.18% in June. The benchmark for this portfolio, the Invesco’s High Dividend Low Volatility ETF (SPHD), lost 1.97% in June as well.
Since its inception in January 2017, the initial investment of $100,000 in this portfolio would have grown to $161,456, which is well ahead of our dividend ETF benchmark ($134,882).
The portfolio growth chart also clearly displays the results of the quality of the stocks in this portfolio and the smaller draw-down compared to the SPHD.
The composition of this conservative portfolio for retirees is constructed based on the following principles:
- Diversification in several sectors and minimum exposure to 20 stocks
- Average dividend yield 3.5% – 4.5%
- Dividend growth rate 4%+
- Dividend score above 60
- Average loss ratio 1.8-2.5 (see defensive aristocrats)
It is time to check on the average dividend yield this month. Based on the initial investment amount of $100,000, the retirement portfolio was able to generate an annual dividend income of 3.29% or higher. For this year, the dividend amount received so far is $2,491 representing 1.68%.
