My mission here is to tap into the wisdom of the crowd, and work with the investment community, to create a high-powered, all environment income producing portfolio. I believe the portfolio should meet the following criteria:
1. Produce consistent invested yields of between 5% – 10%
2. Be well diversified with low correlations
3. Be created with as few securities needed to reach the above two objectives.
Now the above could be completely wrong, so I am reaching out to the community to help optimize. I am attempting to develop this environment with as few constraints as possible, although investments that are not easily accessible should not be considered (i.e. high-net worth investments).
Below are the current holdings I have in the Millennial Income Portfolio (MIP). I have listed them out by their current % of the portfolio, their % of income contribution within the portfolio, and the current dividend yield relative to the cost basis at acquisition. The holding or income weights are by no means target percentages. I am looking towards the community to help me craft the right target weights to meet the objectives of the portfolio.
Currently, the portfolio produces a little over 6% yield on invested capital. In a follow up post I will list some additional tickets I am considering for the portfolio, but would of course love suggestions.
|Ticker||Description||Holding Weight||Income Weight||Yield at Cost|
|VNQ||U.S. Property REITs||15%||10%||3.8%|
|DVY||U.S. Dividend Stocks||14%||8%||3.6%|
|JNK||U.S. Junk Bonds||13%||13%||5.4%|
|PSP||Listed Private Equity||7%||12%||9.8%|
|ETV||S&P 500 Buy-Write||6%||9%||8.8%|
|VYM||U.S. Dividend Stocks||4%||2%||3.1%|