How To Allocate $100,000 In A Dividend Portfolio: Enhancing VYM With Strategic Picks

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Creating a dividend portfolio that balances income, growth, and risk is crucial for long-term success. In my latest analysis, I introduce the Strategically Enhanced VYM Plus 10 Portfolio. This portfolio builds on the Vanguard High Dividend Yield ETF (VYM) by integrating ten carefully selected companies to boost dividend income, growth, and sector diversification beyond VYM’s standard allocation.

While VYM alone offers a solid foundation, this enhanced approach lifts the Weighted Average Dividend Yield from 2.83% to 3.30% and increases the 5-Year Dividend Growth Rate [CAGR] from 5.32% to 6.18%.

Key additions like Realty Income (O), VICI Properties (VICI), and Rio Tinto (RIO) bolster exposure to sectors such as real estate and materials, providing resilience across diverse market conditions. Meanwhile, tech leaders like Microsoft (MSFT) and Apple (AAPL) contribute to stronger dividend growth potential.

This blend not only augments income generation but also optimizes risk-adjusted returns, positioning the portfolio for enhanced performance over a single ETF investment. By combining ETFs and individual stocks, you can align your portfolio more closely with personal investment goals, whether income-focused, growth-oriented, or risk-adjusted.

Explore the full breakdown and strategic rationale for each addition in my complete article on Seeking Alpha. Discover how a thoughtfully crafted dividend portfolio can offer you robust, diversified returns while maintaining a competitive edge.