High quality dividend tilted stock portfolio with strong income and cautious risk profile

Report created on May 7, 2026

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is a pure stock collection with 100% in individual companies plus two equity ETFs. The top six holdings alone make up nearly half of the total weight, so it’s meaningfully concentrated in a handful of names. Most positions are established, mature businesses with long operating histories rather than early‑stage growth stories. That helps explain the cautious risk score despite being all‑equity. A structure like this tends to rely heavily on company fundamentals and dividends for returns, rather than big speculative price swings. The clear focus on steady cash‑generating businesses means the portfolio behaves more like a dividend stock basket than a broad market index, which shows up across sectors, factors, and the income profile.

Growth Info

Over the period from August 2022 to April 2026, a $1,000 investment in this portfolio grew to about $1,754. That translates into a compound annual growth rate (CAGR) of 16.64%, which is how much it grew per year on average. This lagged both the US market and global market, which returned 19.20% and 18.58% per year respectively. However, the portfolio’s worst peak‑to‑trough drop, or max drawdown, was smaller at -13.61% versus deeper falls for both benchmarks. That pattern—slightly lower long‑term growth but shallower dips—fits a cautious, dividend‑oriented tilt. It suggests the portfolio has traded some upside for smoother performance compared with broad equity markets.

Projection Info

The forward projection uses Monte Carlo simulation, which basically re‑mixes historical return and volatility patterns thousands of times to map a range of possible futures. Here, 1,000 simulated paths over 15 years show a median outcome of about $2,890 from $1,000 invested, or an average annual return of 8.19%. The “likely range” between the 25th and 75th percentiles runs from roughly $1,841 to $4,220, while more extreme but still plausible results stretch from about $1,023 to $7,614. Around 75% of simulations end with a positive return. These are not forecasts or guarantees; they’re statistical what‑if scenarios based on past behavior, and real‑world results can land outside this range.

Asset classes Info

  • Stocks
    100%

All assets here are equities, with 0% in bonds, cash, or alternatives. That makes the portfolio’s risk and return entirely dependent on stock market behavior, even though many holdings are relatively mature, stable businesses. In broad index terms, a global equity benchmark would often be paired with other asset classes for balance; this structure consciously stays within the stock universe. The diversification, therefore, comes from company types, sectors, and geographies rather than from mixing in different asset classes. This is consistent with the cautious‑but‑equity‑only profile: volatility can still be meaningful, but it’s moderated by the conservative style of the underlying companies rather than by bonds or cash buffers.

Sectors Info

  • Financials
    27%
  • Real Estate
    17%
  • Consumer Staples
    16%
  • Energy
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Utilities
    5%
  • Basic Materials
    3%
  • Technology
    2%
  • Telecommunications
    1%
  • Industrials
    1%

Sector‑wise, the portfolio leans heavily into Financials and Real Estate, together accounting for roughly 44% of equity exposure. Consumer Staples add another 16%, while Energy, Consumer Discretionary, and Health Care are all meaningful but secondary contributors. Technology and Industrials have very small roles compared with broad market indices that are often tech‑dominated. This tilt favors businesses that tend to generate steady cash flows—like financial services, income‑oriented real estate, and staple products—rather than high‑growth, high‑beta segments. A sector mix like this can feel more defensive in some market environments but may lag if growth‑oriented areas, especially tech, are driving most of the market’s upside. The structure supports the portfolio’s income and low‑volatility character.

Regions Info

  • North America
    97%
  • Europe Developed
    3%

Geographically, the portfolio is overwhelmingly concentrated in North America, at about 97%, with only a small 3% exposure to developed Europe. That means most companies are tied to US and Canadian economies, regulations, and currencies. Compared with global equity benchmarks, which typically allocate a much larger share to Europe and other regions, this is a clear regional tilt. It aligns well with the client’s US base and familiarity, which can make holdings easier to follow and understand. The trade‑off is that economic or policy changes in North America will have an outsized influence on returns, while opportunities and diversification benefits from other regions play a much smaller role in overall portfolio behavior.

Market capitalization Info

  • Large-cap
    51%
  • Mega-cap
    32%
  • Mid-cap
    17%

By market capitalization, this portfolio is dominated by mega‑cap and large‑cap companies, together representing over 80% of the weight. Mid‑caps make up the remainder, with no exposure to small‑cap stocks. Large and mega‑cap firms are typically more established, with deeper resources and more diversified revenue streams, which can translate into more stable earnings and dividends. That fits neatly with the cautious risk rating and the strong tilt toward quality and low volatility. Missing small‑caps does mean less exposure to that part of the market cycle, where returns can sometimes be higher but bumpier. In practice, this cap structure tends to produce smoother, less erratic performance than a portfolio packed with smaller, more volatile companies.

True holdings Info

  • Walmart Inc.
    11.56%
  • Main Street Capital Corporation
    9.97%
  • Realty Income Corporation
    8.64%
  • Royal Bank of Canada
    7.10%
  • Toronto Dominion Bank
    6.77%
  • Lowe's Companies Inc
    5.45%
  • Duke Energy Corporation
    5.21%
  • STAG Industrial Inc
    5.04%
  • AbbVie Inc
    4.43%
  • PepsiCo Inc
    3.56%
    Part of fund(s):
    • Schwab U.S. Dividend Equity ETF
    Direct holding 3.43%
  • Top 10 total 67.73%

Looking through the ETFs into their top holdings, there is relatively little hidden overlap with the portfolio’s direct stocks. PepsiCo, Chevron, and Verizon appear both directly and inside ETFs, but the ETF exposure only adds a small fraction on top of the direct positions. That means most company weightings are what they look like at first glance, without major “double‑counting” from funds. The top direct holdings—Walmart, Main Street Capital, Realty Income, Canadian banks, and others—are the real drivers of risk and return. Since ETF look‑through is limited to top‑10 holdings, there may be some understated overlap deeper down, but the current data suggests concentration is mainly intentional, not accidental.

Factors Info

Value
Preference for undervalued stocks
Neutral
Data availability: 100%
Size
Exposure to smaller companies
Very low
Data availability: 100%
Momentum
Exposure to recently outperforming stocks
High
Data availability: 100%
Quality
Preference for financially healthy companies
High
Data availability: 100%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
High
Data availability: 100%

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 a very distinct profile. Size exposure is “very low,” meaning there’s a strong tilt away from smaller companies and toward larger ones. At the same time, momentum, quality, yield, and low volatility are all meaningfully above market‑neutral levels. Factors are like investment “ingredients” that drive behavior; here, the mix points to stable, established businesses that have been doing well recently, pay solid dividends, and show relatively smoother price moves. A high yield tilt supports the portfolio’s income focus, while high quality and low volatility often help reduce severe drawdowns. The trade‑off is less participation in small‑cap or deep value rallies when those specific segments lead the market. Overall, the factor profile is strongly defensive and income‑centric.

Risk contribution Info

  • Main Street Capital Corporation
    Weight: 9.97%
    10.7%
  • Walmart Inc.
    Weight: 11.56%
    10.4%
  • Realty Income Corporation
    Weight: 8.64%
    8.7%
  • Royal Bank of Canada
    Weight: 7.10%
    7.5%
  • Lowe's Companies Inc
    Weight: 5.45%
    7.4%
  • Top 5 risk contribution 44.5%

Risk contribution looks at how much each holding adds to the portfolio’s overall ups and downs, which can differ from its simple weight. Here, the top three holdings—Walmart, Main Street Capital, and Realty Income—contribute about 30% of total risk. Main Street Capital’s risk share slightly exceeds its weight, while Walmart’s is a bit lower, hinting that Walmart behaves more like a stabilizer than a volatility amplifier. Lowe’s, at 5.45% weight, contributes 7.35% of risk, meaning it punches above its size in driving fluctuations. This pattern shows that while the portfolio is concentrated, the riskiest behavior is not wildly out of line with position sizes, and the biggest holdings are relatively measured in their risk impact.

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 risk vs. return chart compares the current portfolio with an “efficient frontier,” which shows the best possible return for each risk level using just these holdings in different weights. Right now, the portfolio sits below that frontier by about 8.9 percentage points of return at its current risk. The Sharpe ratio—return per unit of risk, after accounting for a 4% risk‑free rate—is 0.98, while a reweighted version of the same holdings could theoretically reach a Sharpe of 1.94 or reduce risk at a Sharpe of 1.4. This suggests there is room to improve risk‑adjusted returns through weighting changes alone, without adding or removing holdings, although such optimizations depend on historical data that may not repeat.

Dividends Info

  • AbbVie Inc 2.40%
  • CVS Health Corp 3.10%
  • Chevron Corp 3.70%
  • Duke Energy Corporation 3.40%
  • Enbridge Inc 5.00%
  • Enterprise Products Partners LP 4.40%
  • Johnson & Johnson 2.30%
  • Lowe's Companies Inc 2.10%
  • Main Street Capital Corporation 7.40%
  • Realty Income Corporation 4.60%
  • Pembina Pipeline Corp 4.60%
  • PepsiCo Inc 3.60%
  • Rio Tinto ADR 3.80%
  • Royal Bank of Canada 1.90%
  • Starbucks Corporation 2.30%
  • Schwab U.S. Dividend Equity ETF 3.30%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 11.70%
  • STAG Industrial Inc 3.60%
  • Toronto Dominion Bank 2.80%
  • T. Rowe Price Group Inc 4.80%
  • TC Energy Corp 3.80%
  • VICI Properties Inc 6.20%
  • Verizon Communications Inc 5.80%
  • Emera Incorporated 3.00%
  • Walmart Inc. 0.70%
  • Weighted yield (per year) 3.96%

The portfolio’s overall dividend yield is 3.96%, comfortably above broad US market averages. Many holdings, like Main Street Capital, Realty Income, VICI Properties, pipelines, and the NEOS and Schwab dividend ETFs, specifically emphasize regular income. Dividend yield is the annual cash payout as a percentage of the current price, and it can be a meaningful part of total return, especially when reinvested. This portfolio blends moderate‑yield blue chips such as PepsiCo, Lowe’s, and Johnson & Johnson with higher‑yield names above 5–6%. That mix supports a steady income stream while not relying entirely on very high‑yield securities, which can sometimes carry extra business or payout risk. Overall, the income profile is a clear strength.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Weighted costs total (per year) 0.04%

Costs are very low overall. The total TER (total expense ratio) for the ETF portion is just 0.04%, helped by the Schwab U.S. Dividend Equity ETF’s fee of 0.06%. The NEOS S&P 500 High Income ETF is more expensive at 0.68%, but it’s a relatively small slice of the portfolio and doesn’t drag up total costs much. TER is like a built‑in annual fee charged by funds, taken directly from their assets, so lower numbers leave more return in investors’ pockets over time. Combined with the lack of mutual funds or high‑fee products, this cost structure is impressively lean and strongly supportive of long‑term net performance. It’s a clear positive aspect of the portfolio.

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