Yield chasing income beast held together with five chunky stocks and a prayer for stability
Report created on Mar 26, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Growth Investors
This setup fits someone who loves steady cash hits, doesn’t scare easily, and is okay watching account values swing while income keeps dripping in. The personality here is patient, stubborn, and a bit yield‑addicted—happy to accept concentration risk in exchange for fat payouts. Goals likely revolve around cash flow first, growth second, and beating a benchmark somewhere around third place. The time horizon is probably long enough to ride out serious drawdowns, but there’s still an emotional anchor to seeing those dividends land. In short: a high‑tolerance income hunter who thinks, “If it pays me every month or quarter, I can live with the drama.”
Positions
-
Altria Group
MO - US02209S1033 20.00% -
Ares Capital Corporation
ARCC - US04010L1035 15.00% -
Main Street Capital Corporation
MAIN - US56035L1044 15.00% -
Blue Owl Capital Corporation
OBDC - US69121K1043 15.00% -
Verizon Communications Inc
VZ - US92343V1044 15.00% -
Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 7.00% -
SPDR S&P 500 ETF Trust
SPY - US78462F1030 7.00% -
iShares Core Dividend Growth ETF
DGRO - US46434V6213 6.00%
This thing isn’t a portfolio so much as a five‑stock income cult with a few ETFs taped on for respectability. Sixty‑five percent is stuffed into five names, and three of those are business development companies, which are basically leveraged lenders in a nice suit. Then you sprinkled a tiny dose of broad ETFs on top like parsley and called it diversification. Structurally, this is “I want dividends now and I’ll worry about nuance later.” The big takeaway: position sizing is doing all the talking here. When a handful of names own your future, you’re not investing, you’re picking favorites and hoping they don’t crash the car.
Growth
Historically, the returns say, “Not bad,” but the benchmarks say, “Could’ve been better.” A CAGR of 11.24% turned $1,000 into $1,893, which sounds fine until the US market walks in at $2,428 with 14.22% a year. You basically paid for extra drama: a -43% max drawdown versus roughly -34% for the big indexes. CAGR (compound annual growth rate) is like your average speed over a road trip; yours is solid but clearly took the slow lane. Main lesson: you accepted more pain than the market and got less payoff. That’s like choosing the hard mode setting and still not beating the game.
Projection
The Monte Carlo simulation basically says, “This might work out great… or not,” which is about as honest as finance gets. Monte Carlo just runs thousands of random what‑if paths based on past behavior—kind of like simulating 1,000 alternate timelines. Median 10‑year outcome is a very healthy +334%, and even the average annualized simulated return at 13.34% looks strong. But the ugly 5th percentile at -17% after a decade is the reminder that bad luck plus concentrated bets can bite. Past data is like yesterday’s weather: useful, but not clairvoyant. Takeaway: odds are in your favor, but the downside tail isn’t exactly declawed.
Asset classes
- Stocks 100%
Asset classes: 100% stocks, zero of anything else. This is the financial version of “Who needs airbags if I drive carefully?” All‑equity can make sense for long horizons and strong stomachs, but pairing that with concentrated high‑yield lenders is like washing down espresso with energy drinks. You skipped bonds, real assets, and cash buffers entirely, so any shock goes straight to your net worth with no padding. Takeaway: this setup screams growth‑tilted income hunter who assumes gains will outrun volatility. Just know that when stocks sneeze, this portfolio catches pneumonia because there’s nothing else in the room.
Sectors
- Financials 48%
- Consumer Staples 22%
- Telecommunications 16%
- Technology 4%
- Health Care 3%
- Energy 2%
- Industrials 2%
- Consumer Discretionary 2%
- Utilities 1%
Sector mix: almost half in financial services, with consumer defensive and communication services doing backup vocals. Translation: you’re heavily tied to lenders and yield machines, plus a tobacco giant and a telecom dinosaur. This isn’t broad sector balance; it’s a themed play dressed up as diversity. Tech, healthcare, and the rest show up as tiny tokens to make a pie chart look less embarrassing. Sector risk matters because when your favorite corner of the market gets punched, everything you own tends to go down together. Takeaway: this is a financials‑centric income engine, not a well‑rounded equity spread.
Regions
- North America 100%
Geography: 100% North America. America or bust, with no passport and zero interest in the rest of the planet. That’s fine when domestic markets are winning, but you’re completely ignoring companies and growth trends elsewhere. Geographic diversification is like not eating only one food group—it doesn’t guarantee bliss, but it lowers the chance everything goes wrong at once. You’ve chosen to live and die by one economy, one currency, and one policy regime. Takeaway: this is a bet that home will always be the best party. It often is… until it isn’t, and you’ve locked yourself out of every other venue.
Market capitalization
- Large-cap 45%
- Mid-cap 35%
- Mega-cap 20%
- Small-cap 1%
Market cap spread is actually one of the less chaotic parts: roughly 20% mega, 45% big, 35% mid, and a forgettable 1% in small. You’ve accidentally ended up with a reasonable tilt toward mid‑caps, which can be a sweet spot between growth and stability. But because your biggest positions are individual names, market cap diversification doesn’t save you if one of those chunky holdings implodes. Think of it as having different car sizes in your garage but still driving the same one at 90 mph every day. Takeaway: the cap mix is fine; the position sizing is what’s reckless.
True holdings
-
Altria Group 20.20%Part of fund(s):
- Schwab U.S. Dividend Equity ETF
-
Verizon Communications Inc 15.31%Part of fund(s):
- SPDR S&P 500 ETF Trust
- Schwab U.S. Dividend Equity ETF
-
Ares Capital Corporation 15.00%
-
Main Street Capital Corporation 15.00%
-
Blue Owl Capital Corporation 15.00%
-
Apple Inc 0.63%Part of fund(s):
- SPDR S&P 500 ETF Trust
- iShares Core Dividend Growth ETF
-
NVIDIA Corporation 0.53%Part of fund(s):
- SPDR S&P 500 ETF Trust
-
Microsoft Corporation 0.52%Part of fund(s):
- SPDR S&P 500 ETF Trust
- iShares Core Dividend Growth ETF
-
Procter & Gamble Company 0.43%Part of fund(s):
- SPDR S&P 500 ETF Trust
- Schwab U.S. Dividend Equity ETF
- iShares Core Dividend Growth ETF
-
Merck & Company Inc 0.43%Part of fund(s):
- SPDR S&P 500 ETF Trust
- Schwab U.S. Dividend Equity ETF
- iShares Core Dividend Growth ETF
- Top 10 total 83.05%
The look‑through is hilariously on‑brand: Altria and Verizon show up both directly and inside the ETFs, just in case you were worried they didn’t already dominate enough. Hidden overlap means your “diversified” ETFs quietly reinforce the same giants you own outright. And because we only see ETF top‑10 holdings, this probably understates how often you’re double‑dipping. Instead of smoothing risk, the funds act like echo chambers. Think of it like ordering a “sampler platter” and discovering it’s just five different plates of fries. Takeaway: if you’re going to be concentrated, own it deliberately—don’t pretend a couple of ETFs magically fix it.
Factors
Factor exposure is where things get oddly sophisticated, almost by accident. You’re loaded on yield (97%), low volatility (89%), and quality (89%), with decent value and momentum. Factors are like the secret flavors behind portfolio behavior—think ingredients list, not the front label. You’ve basically built a “stable, income‑heavy, somewhat sensible” profile, which is hilarious given the concentration. Chasing high yield while also leaning into low vol and quality is like ordering triple bacon but with a diet soda; it kind of balances, but not really. Takeaway: the factor mix should handle choppy markets decently, but individual names can still blow holes through those pretty statistics.
Risk contribution
-
Main Street Capital Corporation
Weight: 15.00% 21.4% -
Ares Capital Corporation
Weight: 15.00% 20.2% -
Blue Owl Capital Corporation
Weight: 15.00% 17.1% -
Altria Group
Weight: 20.00% 16.3% -
Verizon Communications Inc
Weight: 15.00% 8.7% - Top 5 risk contribution 83.7%
Risk contribution blows up the cozy illusion that all 15% weights are equal. Main Street, Ares, and Blue Owl each sit at 15% weight but together contribute almost 59% of total risk. That’s insane concentration in three leveraged lenders. Risk contribution is basically asking, “Who’s really shaking the portfolio?”—and these three are slamming the table. Altria and Verizon are big, but they’re actually pulling less risk than their weights suggest. Takeaway: if something is overrepresented in your risk, not just in your pie chart, that’s where trimming or rebalancing can dramatically calm the ride without changing the overall idea.
Redundant positions
-
High correlationiShares Core Dividend Growth ETFSchwab U.S. Dividend Equity ETF
Your assets are very buddy‑buddy. The dividend ETFs are highly correlated with each other, and the whole portfolio lives in the same general U.S. equity ecosystem. Correlation just means things move together—like friends who always make the same bad decisions on a night out. In a crash, high correlation means everyone jumps off the cliff at once instead of some holdings cushioning the blow. The “diversification” between SCHD and DGRO is basically wardrobe changes on the same actor. Takeaway: if most holdings zig and zag in sync, don’t expect much protection when markets get punched in the face.
Risk vs. return
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
On the risk‑return chart, you’re on the efficient frontier, which means for your particular mix of holdings, you’re at least not wasting risk. Efficient frontier is the curve of “best possible” risk‑return combos given what you already own. Your Sharpe ratio (return per unit of risk) is 0.56, while the optimal mix hits 0.77 with slightly lower risk and higher return. Even at the same risk, an adjusted allocation could improve expected return noticeably. Translation: you chose the right ingredients but then tossed them into the pot in questionable proportions. Takeaway: you don’t need new positions; just rearranging what you already hold could make this a lot smarter.
Dividends
- Ares Capital Corporation 8.00%
- iShares Core Dividend Growth ETF 2.10%
- Main Street Capital Corporation 7.30%
- Altria Group 4.90%
- Blue Owl Capital Corporation 13.40%
- Schwab U.S. Dividend Equity ETF 3.40%
- SPDR S&P 500 ETF Trust 0.90%
- Verizon Communications Inc 5.40%
- Weighted yield (per year) 6.52%
Yield at 6.52% is loud. This portfolio doesn’t just like income; it’s mainlining it. Blue Owl at 13.4%, Ares at 8%, Main Street at 7.3%, Verizon and Altria also chunky—this is an income maximalist setup. Dividends are nice because they feel like payday, but super‑high yields often mean higher risk or lower growth baked in. Relying heavily on distributions can mask capital risk: the check hits your account while the portfolio quietly takes bigger hits under the surface. Takeaway: it’s fine to love cash flow, just remember the company has to survive long enough to keep writing those checks.
Ongoing product costs
- iShares Core Dividend Growth ETF 0.08%
- Schwab U.S. Dividend Equity ETF 0.06%
- SPDR S&P 500 ETF Trust 0.10%
- Weighted costs total (per year) 0.02%
Costs are almost suspiciously low: total TER around 0.02% thanks to cheap ETFs riding alongside mostly individual stocks. You basically tripped and fell into an efficient fee structure. TER (total expense ratio) is the cut taken by funds each year; you’ve kept that slice tiny, which is one genuinely smart part of this build. Costs aren’t your problem here—risk and concentration are. Still, minimizing fees means more of the (admittedly volatile) returns end up in your pocket. Dry compliment: you may be yield‑obsessed, but at least you’re not overpaying the middlemen while doing it.
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