Balanced portfolio with a focus on blue-chip stocks and a modest dividend yield

Report created on Jul 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is comprised entirely of stocks, with each holding representing a 10% allocation. The selection spans a range of sectors including Financial Services, Technology, Consumer Cyclicals and Defensives, Energy, Healthcare, Utilities, and Communication Services. Notably, the portfolio is heavily weighted towards North American companies, with a significant emphasis on mega-cap firms. This composition suggests a strategy geared towards leveraging the stability and growth potential of established companies, albeit with a lower level of diversification across asset classes and geographies.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 16.99%, with a maximum drawdown of -24.06%. This performance indicates a robust return profile, albeit with significant volatility, as evidenced by the sharp drawdown. The days contributing most to returns are relatively few, underscoring the portfolio's vulnerability to market swings. This historical performance, while impressive, should be considered with caution as past results do not guarantee future returns.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, show a wide range of potential returns for this portfolio, with a median increase of 574%. While a large majority of simulations predict positive returns, the variance between the 5th and 67th percentiles underscores the risk involved. This analysis suggests potential for high returns but also highlights the importance of risk management.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, offering the potential for high returns but also higher risk compared to a more diversified asset class mix. While stocks are essential for growth, the absence of bonds, real estate, or alternative investments limits opportunities for risk mitigation and income generation, particularly in volatile or declining markets.

Sectors Info

  • Financials
    20%
  • Technology
    20%
  • Consumer Discretionary
    10%
  • Consumer Staples
    10%
  • Energy
    10%
  • Health Care
    10%
  • Utilities
    10%
  • Telecommunications
    10%

The sectoral distribution covers a broad spectrum, from technology to utilities, providing a degree of diversification within the stock component. However, the heavy focus on financial services and technology sectors could expose the portfolio to sector-specific risks. Balancing sector exposure can help mitigate these risks while still capitalizing on growth opportunities across the broader economy.

Regions Info

  • North America
    100%

With 100% of assets allocated in North America, primarily in the United States, the portfolio lacks international diversification. This concentration in a single region can amplify risks related to geopolitical events, currency fluctuations, and local economic downturns. Expanding geographic exposure could enhance resilience and provide access to growth opportunities in emerging markets.

Market capitalization Info

  • Mega-cap
    70%
  • Large-cap
    10%
  • Mid-cap
    10%
  • No data
    10%

The portfolio's emphasis on mega-cap companies, constituting 70% of the allocation, leans towards firms with a track record of stability and growth. While this focus may offer some protection during market downturns, the inclusion of more mid-cap or even select small-cap stocks could introduce higher growth potential and diversification benefits.

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.

Click on the colored dots to explore allocations.

Considering the Efficient Frontier, this portfolio may not be fully optimized for the best risk-return ratio due to its limited diversification and high sector concentration. Exploring a broader range of asset classes and reducing concentration in certain sectors could potentially move the portfolio closer to the Efficient Frontier, enhancing risk-adjusted returns.

Dividends Info

  • American Express Company 0.70%
  • Costco Wholesale Corp 0.50%
  • Chevron Corp 4.30%
  • Johnson & Johnson 3.20%
  • JPMorgan Chase & Co. 5.70%
  • Microsoft Corporation 0.60%
  • Portland General Electric Co 3.60%
  • Verizon Communications Inc 4.90%
  • Weighted yield (per year) 2.35%

The portfolio's average dividend yield of 2.35% contributes to its total return, offering a modest income stream alongside capital appreciation. While the yields from companies like Chevron and Verizon are notably higher, the overall mix balances growth with income. Adjusting holdings to include higher-dividend stocks or diversified income sources could enhance yield without significantly increasing risk.

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