Method for Creating a $100,000 Dividend Portfolio with a 15%+ Yield in 20 years
The Dividend Income Accelerator Portfolio, a carefully curated investment selection, provides investors with a balanced approach to dividend income and growth, diversification, and reduced risk. The portfolio, detailed in a Seeking Alpha article dated July 23, 2025, includes a mix of ETFs, closed-ended mutual funds, and both U.S.-based and non-U.S. companies.
The portfolio's primary components include the Schwab U.S. Dividend Equity ETF, iShares Core High Dividend ETF, and Schwab Short-Term US Treasury ETF. One of the ETFs, HDV, focuses on high dividend-paying U.S. equities, boasting a dividend yield of 3.38%. Closed-ended mutual funds like the Invesco Diversified Dividend Fund are also part of the mix, with typical holdings including JPMorgan Chase, Walmart, and Microsoft.
The portfolio's geographic and sector allocation aims for broad diversification, featuring both U.S.-based companies like Alphabet and PepsiCo, as well as non-U.S. companies such as Novartis (Switzerland) and Allianz (Germany). Sector diversification spans healthcare, financials, consumer goods, and others to reduce risk.
Updates from July 2025 mention the addition of shares in Alphabet and PepsiCo, enhancing growth and dividend prospects. The Financials Sector, previously accounting for 27.75% of the portfolio, has since decreased to 26.28%, indicating a reduction in sector-specific concentration risk over the past few months.
For investors seeking more specific allocation details, Seeking Alpha articles by the portfolio manager or author, ETF and mutual fund prospectuses/websites, and the portfolio provider’s official publication or website are valuable resources. If you invest $100,000 in the portfolio, it would offer a Weighted Average Dividend Yield (FWD) of 3.98%.
Assuming the portfolio's Average Dividend Growth Rate in the coming years is in line with the portfolio's 5-Year Weighted Average Dividend Growth Rate, you could reach a Yield on Cost of 7.91% in 2035, 11.15% in 2040, and 15.72% in 2045. Despite Apple's recent lower growth rates compared to the past, its risk-reward profile remains attractive. Most of the companies in the portfolio have increased market Capitalization, which tends to have a lower risk level.
- The Dividend Income Accelerator Portfolio, which is detailed in a Seeking Alpha article dated July 23, 2025, includes technology-related companies like Microsoft in its closed-ended mutual funds as part of its diversification strategy.
- The portfolio's geographic and sector allocation also includes investments in the health sector, such as Novartis (a Switzerland-based company), to provide a balanced approach to both income and growth.
- The addition of shares in Alphabet and PepsiCo to the portfolio, mentioned in updates from July 2025, not only enhances growth prospects but also potentially increases the portfolio's dividend yield.
- Insurance companies might also be part of this portfolio, given that technology-focused firms like Allianz are among the non-U.S. companies included in the geographic allocation. Such investments could offer opportunities for growth in the real estate and finance sectors.
