{"id":4060,"date":"2023-10-21T20:26:52","date_gmt":"2023-10-21T20:26:52","guid":{"rendered":"https:\/\/infundpros.com\/news\/2-attractive-high-dividend-yield-buys-for-your-dividend-income-portfolio\/"},"modified":"2023-10-21T20:26:53","modified_gmt":"2023-10-21T20:26:53","slug":"2-attractive-high-dividend-yield-buys-for-your-dividend-income-portfolio","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=4060","title":{"rendered":"2 Attractive High Dividend Yield Buys For Your Dividend Income Portfolio"},"content":{"rendered":"
\n

<\/picture>
<\/figcaption><\/figure>\n<\/p>\n

Investment Thesis<\/strong><\/h2>\n

In today\u2019s article, I will explain the reasons for having added Johnson & Johnson (NYSE:JNJ) and Main Street Capital (NYSE:MAIN) to The Dividend Income Accelerator Portfolio.<\/p>\n

Both companies pay an attractive Dividend Yield (while Johnson & Johnson\u2019s Dividend Yield [FWD] is 3.02%, Main Street Capital\u2019s is 6.98%), and have an attractive Valuation. Johnson & Johnson has a P\/E [FWD] Ratio of 22.60, which is 9.55% below the Sector Median. Main Street Capital\u2019s P\/E [FWD] Ratio currently stands at 9.39. Additionally, I believe that their growth prospects are intact (Johnson & Johnson\u2019s EBIT Growth Rate [YoY] is 8.34% while Main Street Capital\u2019s is 47.44%).<\/span><\/p>\n

Incorporating Johnson & Johnson and Main Street Capital has elevated the Weighted Average Dividend Yield [TTM] of The Dividend Income Accelerator Portfolio to 3.84%. In addition to that, it can be highlighted that we have managed to decrease the portfolio\u2019s volatility and its risk level. This is underscored by the fact that both Johnson & Johnson (24M Beta Factor of 0.30) and Main Street Capital (24M Beta Factor of 0.77) have a 24M Beta Factor below 1.<\/span><\/p>\n

Initially, I had planned to add a company each week for the amount of $100 to The Dividend Income Accelerator Portfolio, totaling an investment of $400 per month. However, for added flexibility, from now on I will individually decide how to distribute the amount of $400 per month, while still maintaining our initial goal of investing $400 per month. For example, instead of adding four companies for the amount of $100 each month, I could buy two companies for the amount of $150 each and two for the amount of $50 each (totaling $400).<\/p>\n

This approach provides us with more flexibility to set the desired proportion each company has on the overall investment portfolio.<\/p>\n

With the acquisition of Johnson & Johnson and Main Street Capital, we have accomplished our goal of investing $400 during the month of October. The previous acquisitions for The Dividend Income Accelerator Portfolio for the month of October were AT&T (NYSE:NYSE:T), and Mastercard (NYSE:MA).<\/p>\n

The Dividend Income Accelerator Portfolio<\/em><\/strong><\/h2>\n

The Dividend Income Accelerator Portfolio\u2019s<\/em> objective is the generation of income via dividend payments, and to annually raise this sum. In addition to that, its goal is to attain an appealing Total Return when investing with a reduced risk level over the long-term. <\/em><\/p>\n

The Dividend Income Accelerator Portfolio\u2019s reduced risk level will be reached due to the portfolio\u2019s broad diversification over sectors and industries and the inclusion of companies with a low Beta Factor. <\/em><\/p>\n

Below you can find the characteristics of The Dividend Income Accelerator Portfolio:<\/em><\/p>\n