How I Built A $3 Million High-Yield Portfolio With 11 Blue-Chips

How I Built A $3 Million High-Yield Portfolio With 11 Blue-Chips

Posted On September 5, 2022 6:42 am

Putting new money to work in a bear market can be terrifying, whether you have $3,000 or $3 million.

But history is clear that buying blue-chip bargains in a bear market can make you rich.

I recently helped guide a family friend through the process of creating the optimal high-yield ultra-low volatility blue-chip portfolio for her needs.

This $3 million portfolio owns just 11 world-beater dividend blue-chips.

This portfolio yields a very safe 5.0% and is expected to deliver market-like 10% long-term returns (as it’s done historically) but with 10% annual volatility (40% less than the market) and 33% to 50% smaller peak declines in market crashes.

It fell 18% in the Great Recession, 10% in the Pandemic, 9% in the 2022 bear market, and is down 2% in 2022, 1/8th as much as the S&P 500 and 1/7th as much as a 60/40.

It’s 99.72% likely to avoid bear markets in the next 75 years and 99.12% likely to deliver 60/40 smashing inflation-adjusted returns over the 50 years.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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