While the S&P 500 ETF (SPY) offers broad market exposure, its dividend yield and growth potential are limited, and it carries a high concentration in the technology sector. In this article, I introduce a strategic enhancement approach, adding 10 high-dividend stocks to diversify your S&P 500 core and elevate income potential.

The “Strategically Enhanced S&P 500 Plus 10 Portfolio” includes well-chosen dividend stocks from underrepresented sectors, such as real estate, utilities, and consumer staples, to reduce sector-specific risk while achieving a Weighted Average Dividend Yield of 2.55%. Key additions include Realty Income and NNN REIT, boosting real estate exposure, while Altria and Nestlé add defensive consumer staples.

Adding Toronto-Dominion Bank and Canadian Natural Resources offers geographical diversification, while high-yield choices like Ares Capital and HSBC enhance the portfolio’s income profile. This strategic mix reduces the portfolio’s dependence on tech giants like Apple and Microsoft, creating a balanced risk-reward profile.

Compared to investing in SPY alone, this enhanced approach increases dividend income and reduces sector concentration, making it ideal for investors seeking to blend growth with sustainable income. If you aim for an even higher income focus, consider my Dividend Income Accelerator Portfolio, offering a yield of 4.20% and a 5-year growth rate of 7.31%. Read the full article on Seeking Alpha.