How To Build A $25,000 Dividend Portfolio, Johnson & Johnson As Your Core Holding

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In this article, I present a carefully crafted $25,000 dividend portfolio designed to combine dividend income with dividend growth, while minimizing risk and volatility.

Johnson & Johnson (JNJ) is positioned as the core holding of the portfolio, making up 4.17% of the allocation. Its Aaa credit rating, Dividend Yield [TTM] of 3.13%, and a 5-Year Dividend Growth Rate [CAGR] of 5.61% highlight its ability to offer stability and sustainable growth.

The portfolio includes:

  • 2 ETFs: Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard S&P 500 ETF (VOO).
  • 10 individual dividend-paying companies, such as Apple, Brookfield Renewable Partners, Realty Income, and Unilever, offering a diverse blend of income and growth potential.

Key features of this portfolio include:

  • Weighted Average Dividend Yield [TTM] of 3.15%.
  • 5-Year Weighted Average Dividend Growth Rate [CAGR] of 7.39%.
  • Sector diversification, with no sector exceeding 16% of the allocation.
  • Low volatility, as evidenced by the largest holdings having 60M Beta Factors below 1.

 

By allocating a significant proportion to defensive positions like Johnson & Johnson, Realty Income, and Unilever, this portfolio is well-prepared for market volatility and offers an excellent balance of income and growth for long-term investors.

Explore how this portfolio allocation can enhance your investment strategy in my article on Seeking Alpha.