My Top 10 Dividend Holdings

After investing for as many years as I have, you tend to have quite the “collection” of holdings.   Not all of them are being added to but they have been built up over time, maybe there were interesting developments at one point, maybe they were undervalued, and so on.   My top 10 dividend holdings have risen to the top of my portfolio through ongoing contributions and capital appreciation throughout the years.

I prefer to have a lot of holdings as it distributes the single-stock risk in my portfolio and provides diversification of income sources.  As I have mentioned before, if I had 20 positions and one cut the dividend, my income would go down around 5%.  With 100 holdings it would only go down 1% on average, which is much easier to handle.

In reality I have around 60 total holdings across my accounts, as shown here, including individual companies, ETFs and CEFs.  I have been focusing on certain positions lately so these might change over time but it is nice to get a snapshot of where I am and where my exposure lies.

I recently wanted to see what my top holdings were across all the accounts so I ran a query from my brokerage and these are my top 10 dividend holdings as of today. 

Top 10

The Top 10 represent 35.54% of assets in my accounts.  The average current yield of the Top 10 is 4.965% and average 5-year dividend growth is 12.40%, per Seeking Alpha.

1. SCHD – Schwab U.S. Dividend Equity ETF – 10.08%

SCHD is a very well known dividend focused ETF and for good reason.  The 100+ holdings are the top tier dividend companies and the fund has a record of excellent total returns, dividend growth, and current dividend payouts.  This is one fund that should be at the base of most dividend investors’ portfolios.  I intend to continue to build this position up to approach 25% or more of my holdings over time. 

2. ABBV – AbbVie, Inc – 4.16%

ABBV is another dividend investing darling due to its high dividend yield and solid dividend growth history.  A spin off from Abbott Labs in 2013, this Dividend Aristocrat has performed extremely well.   Their recent acquisitions have created a diversified pharmaceutical giant that will continue to produce some of the world’s most popular and needed drugs.

3. UTG – Reeves Utility Income Fund – 3.08%

UTG is a Closed End Fund focused on the utility sector that has beaten the S&P 500 in total return since 2004.  With a current yield of over 8% and an average 9.09% yearly total return, this fund provides excellent income prospects for those investors who like a steady high distribution payout with an occasional increase as well.

4. MET – Metlife, Inc – 2.85% 

I have owned MET since 2016 and it has done extremely well over that time, in both capital appreciation and dividend income and growth.  This global insurance company offers life, dental, group, disability, vision and accidental death insurance as well as annuities, investment products, and much more and was founded in 1863.  This is a steady grower in my portfolio that I don’t have to think about much.

5. PEP – Pepsico, Inc – 2.84%

PEP is a household name across the globe.  Their drinks and snacks are staples in pantries and cover numerous brand names including the namesake, Lay’s chips, Doritos, Gatorade, Quaker oatmeal products, and Aquafina.  The split between drinks and snacks is approximately equal which provides great diversification to their revenue and provides a wide selection of opportunities to land and expand new markets, customer base, and product mix.  They have increased the dividend for over 50 years, which makes them a Dividend King.

6. DIVO – Amplify CWP Enhanced Dividend Income ETF – 2.80%

DIVO is a hidden gem of an ETF.  They are actively managed and focus on a small selection of quality dividend growers and then selectively write covered call options on a portion of the holdings at the manager’s discretion to help generate additional income.  The fund was started in 2016 and pays a monthly dividend equal to 4.86% annually right now.

7. AVGO – Broadcom, Inc. – 2.60%

AVGO is a global semiconductor technology company that performed spectacularly, with a 37.37% average total return over the past 10 years, over double what the Nasdaq accomplished (QQQ).  The capital appreciation plus the fast growing dividend have made this company one of the best investments in my portfolio.

8. O – Realty Income – 2.51%

Another dividend investing favorite, Realty Income (O) is known as the Monthly Dividend Company.  They have paid and raised their dividend for over 26 years and regularly increase the dividend multiple times a year.  Their 12,000+ standalone properties are leased to some of the most well known names in retail and they recently expanded into gaming with their purchase of the Wynn Resort in Boston.  They also recently announced a partnership with Plenty Farm to develop indoor farms.  The consistency of this company is what makes it such a staple in so many investor’s portfolio. 

9. BST – Blackrock Science and Technology Trust – 2.48%

BST is a Closed End Fund operated by Blackrock, which is my #1 favorite company.  The fund invests in the science and technology sector and currently holds positions such as Apple, Microsoft, Mastercard, and ASML.  The fund also utilizes a covered call options program to increase the distributions paid to shareholders.  The fund was started in 2014.

10. NEP – NextEra Energy Partners – 2.14%

NEP is the renewable energy subsidiary of NextEra Energy, which is one of the largest utilities in the world.  NEP owns and manages a group of renewable energy assets, such as wind, solar, and battery storage, and contracts with local governments through long-term power contracts.  These long term contracts provide NEP with stable, consistently growing revenue and they can forecast with ease.  This has given them the ability to increase their dividend around 15% a year and management has forecast that those increased amounts will be able to continue until at least 2026, if not beyond.  The renewable energy industry has a lot of tailwinds behind it and NEP is set to benefit from this trend for decades to come.

Summary

As you can see, my top 10 holdings are quite diverse and none of them consist of a large portion of my portfolio, which is by design.  The names are high quality, consistent dividend payers and growers that I can feel comfortable with over the next few decades and that I can rely on when the time comes to use my dividends to fund my lifestyle.