Dividend Driven Portfolio: 17 ETFs Plus 2 Stocks

Emphasizing dividends when constructing a portfolio generally has two positive side benefits. Risk or portfolio volatility is reduced and portfolio diversification is increased. The following portfolio is made up of 17 ETFs and two stocks. Annaly Capital Management, Inc. (NLY) and Eli Lilly & Co. (LLY) are included to enhance income and lower overall correlation among the various investments. The following analysis assumes the S&P 500 will grow at an annualized rate of 7.0% over the next six to twelve months. Historical data included the last three years. I would have extended the time but not all ETFs had four-years of historical data. The basic goals were to find a group of dividend instruments that would generate a projected return in excess of one percentage point above that projected for the S&P 500. Coming in at nearly 8.2%, the following portfolio meets this requirement. With a projected Standard Deviation of... Read more