How I Restructured My Portfolio to Maximize Dividends and Reduce Risk in 2024

Dear Copiers, Followers, and Investors,

I want to take a moment to share with you a detailed overview of the strategy I’m implementing in the investment portfolio on eToro.

(If you don’t have an account on the eToro platform yet and want to start investing, click here to open one 100% free)

Over the past few months, I’ve been restructuring the portfolio to reduce risk while maximizing dividend income, which has been key to achieving our long-term growth goals. 🙌

Performance and current strategy (as of October 2024):

To date, we’ve achieved a 14.5% return so far this year, with an annual dividend yield of 9.27%, all while maintaining a low-risk level of 4 out of 10 on eToro.

This portfolio structure allows us to generate passive income consistently and sustainably while minimizing the risks associated with market volatility.

My focus on dividends:

The key to our strategy is maintaining a well-diversified portfolio of stocks, ETFs, and REITs that pay high dividends. This approach ensures a constant flow of income, which we reinvest to leverage compound interest over time.

Here’s a summary of how our current portfolio is structured and how each asset contributes to our strategy:

High-dividend stocks:

• PFE (Pfizer): A pharmaceutical company that pays consistent dividends and benefits from its strong position in the healthcare industry.
• MO (Altria Group): A consumer company offering a high dividend yield, ideal for passive income.
• KMI (Kinder Morgan): An energy infrastructure provider generating income through its stable dividends in the energy sector.
• UPS (United Parcel Service): A leading logistics company offering a solid dividend with capital stability.
• T (AT&T): Exposure to the telecommunications sector, with regular dividends and long-term growth potential.
• MMM (3M): An industrial company with a long history of reliable dividend payments.

High-dividend ETFs and income strategies:

• QYLD (Global X Nasdaq 100 Covered Call ETF): Uses a covered call strategy, generating consistent income through monthly dividends.
• SDIV (Global X SuperDividend ETF): Offers global dividends, with exposure to a wide variety of sectors and regions.
• BKLN (Invesco Senior Loan ETF): Invests in senior loans at variable rates, ideal for capturing stable income with lower volatility.
• AMZA (InfraCap MLP ETF): Invests in energy MLPs, generating high and stable dividends.
• MJ (ETFMG Alternative Harvest ETF): Exposure to the cannabis sector, with long-term growth potential and dividend distribution.

REITs (Real Estate) and mREITs:

• O (Realty Income): Known as the "monthly REIT," providing stable income through commercial real estate.
• ARR (ARMOUR Residential REIT) and AGNC (AGNC Investment Corp): Provide high dividends through investments in residential mortgages.
• SLG (SL Green Realty): A REIT focused on commercial office properties, with solid dividend payouts.
• MPW (Medical Properties Trust): Exposure to hospital and healthcare properties, a sector with long-term stability.
• ORC (Orchid Island Capital): Specializes in mortgage-backed securities, with a high monthly yield.
• EFC (Ellington Financial): A diversified mREIT in mortgage debt and credit assets, offering attractive dividends.
• PSEC (Prospect Capital Corporation): A Business Development Company (BDC) offering high monthly dividends, investing in private company debt.

Growth stocks with dividends:

• MSFT (Microsoft) and TSLA (Tesla): While these stocks are primarily driven by capital growth, they hold an important position in our portfolio due to their long-term potential.
• NEP (NextEra Energy Partners): An investment in renewable energy, with a focus on dividend growth.
• VOW3.DE (Volkswagen AG): Exposure to the European automotive sector with solid dividends and growth potential in electric vehicles.
• CCI (Crown Castle International): A REIT specializing in telecom towers, a growing sector with stable payments.

Other international and sector-specific stocks:

• PBR.A (Petrobras): A Brazilian energy company offering a high dividend yield, with exposure to the oil and gas market in Latin America.
• ABR (Arbor Realty Trust): Specializes in commercial real estate financing, offering attractive dividends in the real estate sector.

Long-term strategy:

It’s important to remember that our approach is designed to generate passive income consistently over time. We don’t worry about daily fluctuations, as what we aim for is capturing growth through high dividends and taking advantage of compound interest.
The key is to hold the portfolio for the long term and allow the reinvested dividends to drive capital growth. 🚀

Recommendations for those wanting to copy the portfolio on eToro:

If you’re considering copying my portfolio or increasing your investment, I recommend doing so with an amount that feels comfortable. A minimum of $500 will give you adequate exposure to all positions and allow you to fully capture the benefits of dividends.

You can view my public investment profile on eToro by clicking here: @pquiroga10

Remember, this is a long-term strategy, and to get the best results, it’s important to keep the copy open for at least one year. 💪🏼

Thank you once again for trusting in this investment strategy. Together, we are building a solid and diversified portfolio, to generate sustainable passive income over time. Feel free to leave me a comment if you have any questions, and I’ll be happy to respond.

Best regards and happy investing,
Pablo Quiroga