Our retirement portfolio gained 7.32% in November 2020, which is below the S&P 500 index, which rose 10.9% this month, the best November in its history and above the previous record, a 10.2% gain in November 1980. Our benchmark for this portfolio, the Invesco’s High Dividend Low Volatility ETF (SPHD), excelled to a plus of 13.37%.
Retirement monthly performance
Since its inception in January 2017, the initial investment of $10,000 in this portfolio would have grown to $14,626, which is well ahead of our dividend ETF benchmark ($10,986).
Portfolio growth (initial investment $100,000)
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.
Retirement portfolio Principles
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 $10,000, the retirement portfolio was able to generate an annual dividend income of 3.49% or higher. For this year the dividend amount received so far is $429 or 3.01%.
More details and the dividend stocks in portfolio are available to members.
