High yield value tilted US dividend portfolio with concentrated stock and regional exposure
Report created on May 4, 2026Risk profile
4/7
Diversification profile
2/5
Positions
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SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 63.43% -
ET Energy Transfer LP
ET - US29273V1008 12.29% -
AA American Airlines Group
AAL - US02376R1023 10.79% -
O Realty Income Corporation
O - US7561091049 10.09% -
XO Exxon Mobil Corp
XOM - US30231G1022 1.80% -
PP PPL Corporation
PPL - US69351T1060 1.60%
This portfolio is built almost entirely around one core ETF plus three meaningful single-stock positions. The Schwab U.S. Dividend Equity ETF makes up about two‑thirds of the total, with Energy Transfer, American Airlines, and Realty Income together adding another third. A few smaller positions round out the mix but barely move the needle. Structurally, this looks like an equity-only, income-oriented portfolio with some satellite bets around the main ETF core. That kind of “core and satellites” approach can keep things relatively straightforward while still leaving room for specific convictions. The flip side is that long‑term results will be heavily shaped by how those few large holdings behave, especially during sharp market swings.
Growth
Historically, $1,000 invested in this portfolio in 2016 grew to about $2,744, for a compound annual growth rate (CAGR) of 10.68%. CAGR is like your average speed on a long road trip, smoothing out all the ups and downs. Over the same period, the broad U.S. market grew faster at 15.22% per year, and the global market at 12.60%, so this portfolio lagged both. The maximum drawdown was about -40%, steeper than the benchmark drawdowns around -34%, and it took around 10 months to recover. That means the portfolio has delivered respectable absolute growth, but with somewhat deeper falls and slower rebounds compared with broad equity indices.
Projection
The Monte Carlo projection looks at 1,000 different “what if” paths based on past volatility and returns to estimate future ranges. It suggests that $1,000 held for 15 years has a median outcome around $2,712, with a fairly wide “likely” band from roughly $1,816 to $4,310. Monte Carlo doesn’t predict one exact future; it shows a spectrum of plausible results if markets behave similarly to history. About three‑quarters of the simulations end with a positive result, and the average simulated annual return is a bit over 8%. These numbers are helpful for intuition, but they’re inherently uncertain because real markets can change regime in ways past data doesn’t capture.
Asset classes
- Stocks 100%
All holdings here are in stocks, so the asset allocation is 100% equity with no bonds or cash-like assets in the mix. Asset classes are broad buckets like stocks, bonds, and real assets; combining them is one of the key ways investors usually manage risk. Being fully in equities keeps growth potential higher over long periods but generally means larger short‑term swings, especially during market stress. Relative to a more mixed stock‑bond blend, this kind of pure equity structure tends to be more sensitive to economic cycles, earnings expectations, and shifts in interest rates. The portfolio’s “balanced” risk label is therefore coming from within-equity diversification, not from multiple asset classes.
Sectors
- Energy 24%
- Industrials 16%
- Consumer Staples 12%
- Health Care 12%
- Technology 10%
- Real Estate 10%
- Financials 6%
- Telecommunications 4%
- Consumer Discretionary 4%
- Utilities 2%
Sector-wise, the portfolio leans strongly into energy at about 24%, with meaningful slices in industrials, consumer staples, health care, technology, and real estate. Compared with a typical broad U.S. equity benchmark, energy and real estate are more prominent, while areas like information technology or communication services are less dominant. Sector allocation matters because different parts of the economy tend to lead or lag at different times. For example, energy and real estate can be more sensitive to commodity prices and interest rates, while staples and health care can be steadier in slowdowns. Overall, this sector mix is more income- and asset-heavy than a standard growth‑tilted market index, which can change how it reacts to macroeconomic news.
Regions
- North America 100%
Geographically, exposure is 100% North America, with no allocation to other regions. Geography affects how tied a portfolio is to one economy, one set of policies, and one currency. Many global benchmarks include substantial non‑U.S. exposure, often around 40–50% of total market value, so this portfolio is much more domestically concentrated than “world” indices. That tight focus can be helpful if North American companies continue to perform well, but it also means portfolio results are dominated by what happens in that single region’s markets and politics. There’s limited participation in potential growth or diversification benefits from other developed or emerging economies.
Market capitalization
- Large-cap 73%
- Mid-cap 22%
- Small-cap 2%
- Mega-cap 2%
- Micro-cap 1%
By market capitalization, most of the portfolio sits in large‑cap companies, with smaller allocations to mid‑caps and only a sliver in small and micro caps. Market cap simply measures a company’s total value on the stock market, and larger firms tend to be more established and somewhat less volatile than very small ones. This tilt toward large caps lines up reasonably well with broad benchmarks, which are also dominated by big companies. The relatively low small‑cap exposure means the portfolio is less exposed to the more extreme ups and downs that tiny companies can experience, but also participates less in their potential for rapid growth bursts when smaller firms are in favor.
True holdings
-
-
-
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TX Texas Instruments Incorporated 3.48%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
UN UnitedHealth Group Incorporated 3.18%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
QC Qualcomm Incorporated 3.09%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CV Chevron Corp 2.60%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
KO The Coca-Cola Company 2.53%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CO ConocoPhillips 2.48%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
PE PepsiCo Inc 2.42%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 52.95%
Looking through the ETF to its top holdings, a few large names like Texas Instruments, UnitedHealth, Qualcomm, Chevron, Coca‑Cola, ConocoPhillips, and PepsiCo show up as notable underlying exposures. There is no overlap between these and the direct stock positions, so hidden concentration from duplication is limited based on the top‑10 data. Still, ETF top‑10s only cover part of what the fund owns, so overlap beyond that isn’t fully visible. The biggest single-stock risks here remain the stand‑alone positions in Energy Transfer, American Airlines, and Realty Income, which are not diversified away inside the ETF. That makes the portfolio’s overall story closer to “core income ETF plus several targeted stock bets.”
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows strong tilts toward yield, value, quality, and low volatility. Factors are like investing “ingredients” — characteristics such as cheapness (value) or stability (low volatility) that research links to long‑term return patterns. A very high yield tilt means the portfolio emphasizes income-paying stocks, while high value exposure points to stocks priced more cheaply relative to fundamentals. High quality and low volatility tilts suggest a bias toward financially solid, historically steadier companies. Together, this combination tends to behave differently from a pure growth or momentum style: it may shine when income and defensiveness are rewarded, but could lag in fast, speculative rallies driven by non‑dividend growth names.
Risk contribution
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Schwab U.S. Dividend Equity ETF
Weight: 63.43% 52.3% -
American Airlines Group
Weight: 10.79% 21.3% -
Energy Transfer LP
Weight: 12.29% 14.9% -
Realty Income Corporation
Weight: 10.09% 8.6% -
Exxon Mobil Corp
Weight: 1.80% 1.8% - Top 5 risk contribution 98.9%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can differ from simple weights. Here, the top three positions account for about 88% of total risk. Notably, American Airlines is around 11% of the portfolio but contributes over 21% of the risk, making it disproportionately influential. Energy Transfer’s risk share is also higher than its weight, though less extreme. The ETF and Realty Income contribute less risk than their sizes would suggest, reflecting their more diversified or steadier profiles. This pattern means that, day to day, portfolio behavior is heavily shaped by a small set of more volatile positions even though they don’t dominate the dollar allocation.
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.
The efficient frontier chart compares this portfolio’s current mix to what could be achieved by just reweighting the same holdings. The Sharpe ratio, which measures return per unit of risk above a risk‑free rate, is 0.44 now but could reach about 0.75 at the optimal point. The minimum‑variance mix shows lower risk with a better Sharpe as well. The current allocation sits about 2.4 percentage points below the frontier for its risk level, meaning it is not using the existing ingredients as efficiently as possible in a risk/return sense. Importantly, this analysis doesn’t suggest new assets, only that alternative weightings of what’s already here might have delivered smoother or better‑balanced results historically.
Dividends
- Energy Transfer LP 6.60%
- Realty Income Corporation 4.60%
- PPL Corporation 2.90%
- Schwab U.S. Dividend Equity ETF 3.30%
- Exxon Mobil Corp 2.60%
- Weighted yield (per year) 3.46%
The portfolio offers a relatively strong income profile, with an overall dividend yield around 3.46%. Yield is simply the cash paid out each year as a percentage of the current value. The Schwab dividend ETF contributes a steady base, while Energy Transfer and Realty Income add higher yields, and other names like PPL and Exxon Mobil provide additional, smaller income streams. Dividends can be an important component of total return, especially in sideways markets where price gains are modest. However, higher yields can sometimes come with higher underlying business or price risk, so the yield number alone doesn’t guarantee stability. Still, the portfolio’s income orientation is clear and aligns well with its factor tilts.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- Weighted costs total (per year) 0.04%
On costs, the portfolio is very lean. The core Schwab U.S. Dividend Equity ETF carries a total expense ratio (TER) of 0.06%, and when blended across everything, the overall TER sits around 0.04%. TER is the ongoing annual fee charged by funds, expressed as a percentage of assets, and it quietly compounds over time. These figures are impressively low compared with many active products and even some other passive funds. Lower costs mean less performance drag year after year, leaving more of the underlying returns in the portfolio. From a structural perspective, this cost profile is a clear strength and supports better long‑term compounding relative to higher‑fee alternatives.
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