Balancing a portfolio with enough dividend stocks.

In my portfolio I want to get a certain amount of return. My target goal for returns is 5% annual in dividends, and so to achieve that it is useful to think of my portfolio having two separate parts. The one completely invested in market risk and the other invested in the returns from dividends.

Based on your goals you may want more or less invested based on dividends. If your emphasis is on short term investments to capitalize on gains in stock price then it may not be worth it to look for stocks with dividends. That being said, the best method is likely to have a combination of these types of investments, so that you can have a long term side and a short term side to your portfolio.

By scaling up or down each part of your portfolio you can aim towards a target return for your portfolio as a whole. In my current portfolio I am getting an annual return of $4.02 about 3%. If my goal is to get that number up to 5% then I can buy 4 more shares of CYS or NRZ or a combination of the two. Using charts like this can help pick out what your next buys should be based on your current goals. As it stands I have $92.725 invested completely in share price and $38.49 invested in dividend returns. While some of the value only stocks are ones I think are going to be good for long term growth, I still want to see liquid cash gains over time, to mitigate risk.Screenshot 2015-12-26 at 6.10.23 PM


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