Our retirement portfolio jumped 8.50% in March 2021, which is above the S&P 500 index, which rose 4.38% this month. The benchmark for this portfolio, Invesco’s High Dividend Low Volatility ETF (SPHD), also gained a lot and added 9.53%.
Retirement monthly performance
Since its inception in January 2017, the initial investment of $10,000 in this portfolio would have grown to $15,592, which is well ahead of our dividend ETF benchmark ($13,012).
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 $123 representing 0.83%.
