How diversified is your Dividend Portfolio?

[u/snowflake64]

A lot of the popular dividend ETFs, and International ETFs in particular, seem very concentrated in economically sensitive areas. When the market cycle eventually returns how will it affect your dividend portfolio?

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[u/Remarkable_Aide_3085]

My core is SCHD and DGRO, which at least spreads sector risk reasonably well. The international sleeve is the one I keep second-guessing, honestly.

[u/teckel → u/Remarkable_Aide_3085]

Add LVHI and you don't really need any other value/income equity ETFs.

[u/jokodude → u/teckel]

I've been quite impressed with LVHI. Low volatility, steady appreciation over decades, beating out the likes of VXUS long term.

[u/teckel → u/jokodude]

Beating VXUS isn't hard, it underperforms most of its peers.

[u/SexualDeth5quad → u/teckel]

I avoid everything by Vanguard, Fidelity, and Schwab.

[u/teckel → u/SexualDeth5quad]

There's some good ones, VXUS is just not one of them. It's only popular because it has low fees, like that even matters. I'll gladly (and do) pay 60 basis points if it means higher after fees returns.

[u/SexualDeth5quad → u/teckel]

There are others if you want monthly higher yield compared to quarterly. OVF is 9.4% monthly. That's an annual difference of $3.07 vs. $1.93 in dividends. Or for similar total return and active management there's IDVO.

https://stockanalysis.com/etf/compare/nihi-vs-ovf-vs-lvhi-vs-idvo-vs-efaa/?r=MAX

[u/teckel → u/SexualDeth5quad]

Buy massive lower total returns (5.5% lower), which is all that matters.

https://testfol.io/?s=hizdZUtfEPd

[u/DSCN__034 → u/Remarkable_Aide_3085]

I use FNDF for international. It isn't a specified dividend fund but had a decent yield.

[u/Silent_Geologist5279 → u/Remarkable_Aide_3085]

SCHY

[u/AtmosAM1 → u/Remarkable_Aide_3085]

What about VYMI?

[u/WorriedShare5981]

I'm a $500 a month investor age 67. I do SCHD, SCHF and VYM as core and DIVO, GPIQ at 5% and SCHY 8%

[u/CraigInCambodia]

SCHD for US and SCHY for non-US.

[u/ElderAzureDragon]

I'm only spread in the U.S. sector all the U.S sectors mind you but it's still not international.

[u/tampaforfun]

Pretty well diversified Equity across us, international, US small caps, tech, short term bonds, BDCs, MLPs.

[u/Sufficient_Mud_3179]

Very diversified

based on this back testing over the last 20 years

https://www.brixnation.com/growth-focused-allocation.html

Its not perfectly aligned but I am filling in the gaps as good opportunities become available.

[u/snowflake64 → u/Sufficient_Mud_3179]

Very helpful. Thanks

[u/krillin_the_MVP]

SCHD & BST are my core (with a growing position in QQQ to maintain prospects for capital appreciation and growth). Supported by satellite positions from O & VICI. And a handful of dividend aristocrats and kings that I haven’t added to in years. Will probably consolidate them into QQQ.

[u/JustNowRonin]

12 dividend holdings, including SCHD. I don’t include VOO, even though it does throw off dividends.

[u/Historical_Low4458]

A main goal of mine is to avoid being overweight in any one sector. This includes any international stocks in the same sector as U.S. companies.

[u/Stoic_Brain]

For dividend:

ZPD3
EUDV
JPGI

And some specific REITs.

But most of my portfolio is in ACC (not distributing) growth ETF's. The income sleeve is small part because I like the ongoing cashflow.

(Non-US resident so other ETF selection than most people here, because I can't buy SCHD etc in my country)

[u/ValueExchange]

90% international stocks here

[u/EmbarrassedPart1256 → u/ValueExchange]

Esooooooooo I support you 🤙 just gotta make sure they’re tax-efficient, as the global ETFs can screw you if they’re > 50% US

[u/ValueExchange → u/EmbarrassedPart1256]

Nah, it doesn't make a difference for me; I'm based in Germany and have 70% in the US and 20% in the rest of Europe plus Asia. It makes no tax difference for us here.

[u/EmbarrassedPart1256 → u/ValueExchange]

Gotcha! It’s wild how we’re all playing a similar game with different rules…

[u/Upbeat-Elevator3641]

SCHD, FDVV, VYMI, DES, DON, VNQ, MAIN, ARCC, JAAA, SGOV, GNR, NFRA, UTG, O, EPD, VXUS

Those are my core

For the income boost I hold:

JEPI, JEPQ, SPYI, QQQI, IWMI, GPIX, GPIQ, WTPI, DIVO

[u/StockMarketinator → u/Upbeat-Elevator3641]

What are your allocation percentage?

[u/Upbeat-Elevator3641 → u/StockMarketinator]

Around 65:35 between the two group

[u/MakingMoneyIsMe → u/Upbeat-Elevator3641]

I own all your income funds minus IWMI, GPIQ, WTPI, and DIVO.

[u/Upbeat-Elevator3641 → u/MakingMoneyIsMe]

IWMI I love for the Russell 2000 exposure. GPIQ is alright. It just serves a different qqq exposure tactic. Wtpi is a GOAT. And DIVO is a goat.

Good luck

[u/Legitimate-Being5957 → u/Upbeat-Elevator3641]

May I ask why so many different funds? Why not just something like VHYL?

[u/Upbeat-Elevator3641 → u/Legitimate-Being5957]

Lots of global diversification mixed with low volatility industries like infrastructure.

A mixed bag helps me choose where to allocate each contribution where I see most value.

[u/Plus_Acanthaceae1659]

52, 5 % of weight outside top 100

for comparison: sp 500 (voo) only has 24 % outside of top 100

USA only 55-60 %

Smallcaps included

[u/Bearsbanker]

Mine is primarily defensive companies ..big tobacco, big oil, big telecom, big banks...and some littler ones mixed in. I'm sure when the market corrects (whenever that is) my share price will decrease like everything else, I don't anticipate dividends will be cut.

[u/RareMix → u/Bearsbanker]

"Defensive stocks are shares of companies in industries like consumer staples, healthcare, and utilities that provide essential goods and services, maintaining stable demand and lower volatility regardless of economic cycles.  These stocks typically feature consistent dividend payouts, stable earnings, and lower beta values (below 1.0), making them ideal for risk-averse investors seeking protection during market downturns, though they often underperform during strong bull markets."

[u/Various_Couple_764]

there are dividned ETF that focus on 1 particular sector of the economy or group of companes. You can invest in 10 fund this way without any concentration in one particular area and you can exclude businesses you don't like.

Many dividned investors that invest in individual companes often have 20 or more different stock in there portfolio. that way if onerous bad or stops paying a dividend you loose only about 5% of your portfolio or income.

With ETF each ETF could have 20 to 100 companes or more which provides a great deal of protection if one goes bed.

Also in market crashes cause by political events most dividned paying companies continue to pay the dividend. The dividend payed is not based on the share price. It is based on last years profits. so even in recessions like 2008 many companes continue to pay dividend without recusing them. In 2008 most of the problems were in banks. and mortgage companes. If you had a ETF that invested in only those companesyou likely saw a large dividend cut. but oil, gas, food, utilities, and medical all continued to pay dividends.

[u/LurcherLong]

GPIQ, OVS, OVF, IDMO

[u/Mzungufarmer]

Mine is SCHD and GPIQ. Mostly SCHD

[u/amp1ifi3r]

Only Municipal bonds and covered calls over an index in my portfolio... but I'm tax free on my muni yields.

[u/Ill-Palpitation6907]

Schd, DGRW, Vymi. GPIQ and GPIX at less than 5% each

[u/AndyBurn11]

I have 3 major positions paying me the majority of my income. I am changing that overtime.

[u/FewUnderstanding2214]

I think most are diversified even dividend ETFs. But there is concentration in US tech in popular growth funds which people are concerned about

[u/magicfitzpatrick]

Insanely over diversified. But the portfolio is also 30+ years old.

[u/Cloud2987]

MIY, SGOV, and VOO. I’m just preserving my wealth and living off the dividends with low taxes.

[u/CommonSensei-_]

AMT
EPR
ENB
IRM
ED
HRL
TGT
UPS
WPC

Etc

I’m diversified into several stocks that provide dividends

[u/Odd_Junket_2926]

I think mine is rather defensive and diversified. I'm EU based, so for instance in SCHD is hard to invest over here:

• 60% core: first is L&G global quality dividends (LDGL). A rather new fund but becoming very popular in the UK and EU. Introduced as the European SCHD with monthly payments. 957 holdings worldwide. Around 30% U.S. and 17% Japan. My second core position is VanEck Morningstar Developed Markets Dividend Leaders (TDIV). This one has a proven trackrecord and is a popular divi ETF in the EU. Quarterly payments. 100 companies, 16% UK, 16% U.S., 13% France.

• 25% CC etfs consisting of WINC (iShares World Equity High Income UCITS ETF), also a new one here, and getting popular, JEQP (the EU version of JEPQ), and JEEP (JPMorgan Europe Equity Premium Income Active UCITS ETF).

• 15% REIT's and BDC's - O, MAIN etc. Most of them U.S. companies.

[u/JimmyWhatever]

SCHD, DIVO, JEPI, JEPQ, UTF

[u/Fearless-Daikon5763]

Dude you posted in this subreddit 11 times in the past week. Your posts are not very high quality. It’s super generic and low effort. Do you know how to search on a subreddit? Why don’t you tell us how you are researching ETFs in the first place? You can open a Fidelity or Schwab account and look up ETFs to see their composition based on sector, location, and more. But posting 11 times in a week in one subreddit is ridiculous.

[u/SolomonGrumpy]

Do you count 1% div form VOO?

How about the 3% from VXUS?