Oakford Park Wealth
Dividend Equity Portfolio
Dividend Portfolio IB Asset Management
The Dividend portfolio is a portfolio designed to systematically deliver return and risk characteristics of large and mid cap high dividend stocks within the US equity market. The portfolio is implemented using a rules-based approach and offered at a relatively low cost.
A factor-based approach to portfolio construction is grounded in academic research. The goal is to achieve an alternative risk-return profile, which is more attractive than a simple capitalization-weighted index such as the S&P 500.
The portfolio is constructed using a rules-based algorithm to determine position allocations. The portfolio is rebalanced quarterly and stocks having high dividend yields have a greater chance of being included.
The portfolio targets an allocation of 300 long positions. Stocks with attractive dividend yields receive higher allocations. One advantage of the portfolio is that it offers investors a stream of dividend income while also providing the potential for longer term attractive returns. As a form of risk control, the portfolio construction process is designed to penalize high volatility in stocks and avoid excessive concentration in single sectors of the market.