The Objective of the Dividend Income Accelerator Portfolio

The Dividend Income Accelerator Portfolio is designed to effectively balance dividend income and dividend growth, offering investors a reduced risk profile while striving for attractive total returns.

The goal of this portfolio is to provide a combination of a relatively high dividend yield and consistent dividend growth. This enables investors to generate increasing income year over year while maintaining a strong total return potential.

A high dividend yield alone is not enough — it must be complemented by a compelling overall return. However, the primary objective of this portfolio is not to outperform the market, but to build a diversified, lower-risk portfolio that offers stable and growing income streams and strong long-term returns.

Importantly, this strategy is not based on market timing. Instead, it focuses on steady, long-term investing in any market condition. I personally do not believe in trying to time the market — but I firmly believe that disciplined, long-term investing can produce excellent results.

This approach helps reduce dependence on stock price fluctuations. By focusing on dividend income rather than short-term price movements, investors can worry less about market volatility and more about consistent income.

Who This Portfolio Is For

This portfolio is designed for long-term investors who:

• Seek to generate significant dividend income and grow it annually;
• Want a diversified portfolio built on strong fundamentals, financial health, and competitive advantages;
• Are focused on retirement planning or building wealth through steady investment;
• Prefer business ownership through equity, benefiting from profits and rising dividend payments.

It is not intended for short-term traders or speculative investors.

Portfolio Characteristics

Key features of the Dividend Income Accelerator Portfolio:

• Attractive Weighted Average Dividend Yield [TTM]
• Strong 5-Year Dividend Growth Rate [CAGR]
• Reduced Volatility
• Lower Risk Profile
• Optimized Risk-Reward Profile
• Compelling Expected Long-Term Total Return
• Globally Diversified
• Diversified across Asset Classes, Sectors, Industries, and Countries
• Long-Term, Buy-and-Hold Oriented

Company Selection Criteria

Companies in this portfolio are selected based on:

• Strong competitive advantages, such as brand strength, network effects, technological edge, or cost leadership;
• Robust financial health, including high EBIT margins and return on equity;
• Attractive valuation, based on fundamental metrics.

Companies with strong moats are more likely to endure over the long term — reducing risk and improving the chances of achieving strong risk-adjusted returns.

Company Categories

1. High Dividend Yield Companies

These companies boost the portfolio’s income generation from day one. They typically have stable cash flows and a strong market position, enabling them to pay above-average dividends.

Examples: Multi-line Insurance, Tobacco, Integrated Telecom, or Oil & Gas companies.

2. Dividend Growth Companies

These firms offer growing dividend payments over time and usually maintain low payout ratios, giving them room to increase future distributions.

Examples: Pharmaceuticals, Payment Processing, or Information Technology companies.

These two categories — high yield and dividend growth — will represent the majority of the portfolio to ensure an attractive blend of income and growth.

3. Growth Companies

While growth companies that don’t pay dividends are not the focus, a small portion of the portfolio may include them. These firms can offer strong risk-adjusted returns and enhance overall portfolio performance — even without dividend payments.

Explore the current composition of The Dividend Income Accelerator Portfolio in my article on Seeking Alpha.