model retirement portfolio growth

Our model retirement portfolio continues to produce solid, steady, and growing income to our subscribers. While total return has lagged the S&P 500 for the first half of 2017, we have easily beat the market in real cash returns and are well on the way of once again generating over 4% in dividend income for the year.

For those of you who are unaware of our Portfolio service, we provide our members with a model retirement portfolio to follow that is designed to pay out at least 4% in dividend income each year as well as increase that dividend income annually. We provide monthly updates to our members to keep them informed about the stocks in our Portfolio and we also provide buy/sell recommendations that will increase your annual dividend income and/or capitalize on strong price gains. Check out what our members who followed our model retirement portfolio achieved in 2017.

Total Return

The total return of the 4% Portfolio in 2017 is 2.6%, lagging the total return of the S&P 500. The primary cause of this is due to our positions in the Retail sector that have underperformed for the year so far. Those stocks have generated solid returns in the form of dividends though and we see no reason why they will not continue to do so.

Jan-June 2017 Performance

The 4% Portfolio is not focused on total return though, the primary goal is to generate a safe, reliable, and increasing income stream for our members. We are happy to report that of our total return, dividend income has made up…

Return From Dividends

2.4% of the 2.6% total return. Members are well on their way to pocket well over 4% in real returns in the form of dividend income. That is cash that goes straight to their bank accounts without them needing to reduce their investment principal. We have already generated 150% more income that S&P 500 index.

Dividend Increases

Our Portfolio isn’t just based on current yield. We focus on companies who also have a history of increasing their dividend payment year after year. Inflation can be a destructive force in retirement. The goal of our Portfolio is to not just counteract the effects of inflation but to exceed those effects. Our Portfolio has had 15 dividend increases in 2017 already as well as 2 substantial special dividendsThese increases came through routine dividend increase announcements as well as a few strategic buy/sell recommendations.


Although our Portfolio is intended to be fairly static, we cannot ignore times when we can sell a position for a solid gain and move that money into another higher yielding stock. We have made two buy/sell recommendations in 2017 that resulted in an average gain of nearly 9%. For every sale, we recommended a move into a higher yielding stock that significantly increased our member’s income. In fact, we averaged a 35% increase in dividend income in the new positions when compared to the income that was previously being generated by the stock we recommended selling. And we made these moves without sacrificing the Portfolio’s diversification and overall risk.

We are happy with our results in 2017 and look forward to what the rest of the year has to offer. While it’s hard to predict what total return we will achieve in 2017, we are quite confident that we will continue to see 4%+ in dividend income with consistent increases announced throughout the year.

Are you ready to take control of your retirement! Then sign up now! Not a member and have a question about our service? Please don’t hesitate to contact us and ask. You can learn more about our investment philosophy, or see why we think the 4% Portfolio is a better option to typical retirement investing strategies.

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