I am undertaking an unprecedented public review of my investment portfolio, a practice I typically reserve for private, annual assessments. My investment strategy is meticulously designed to achieve a harmonious blend of substantial yield and consistent dividend increases. Currently, my portfolio delivers an impressive 5.3% yield, complemented by a robust 5.5% five-year dividend growth rate, demonstrating a commitment to both immediate income and long-term appreciation.
A significant portion of my current holdings, specifically 40%, is allocated to Real Estate Investment Trusts (REITs). This concentration stems from my extensive professional background in commercial real estate and my strong belief in the resilience and growth potential of carefully selected property operators. My top investments within this sector include industry leaders known for their high-quality assets, prudent leverage, and effective management, such as Agree Realty (ADC), Clearway Energy (CWEN.A), EastGroup Properties (EGP), Hannon Armstrong (HASI), and Enterprise Products Partners (EPD).
Looking ahead, my long-term vision involves a strategic reallocation of assets. The objective is to gradually increase my exposure to funds, specifically Exchange Traded Funds (ETFs) and Closed-End Funds (CEFs), to approximately 40% of the portfolio. Concurrently, I plan to reduce the proportion of REITs to 20%. This adjustment is intended to further optimize the portfolio's income growth trajectory and enhance its overall risk profile by diversifying across a broader range of investment vehicles.
A well-structured investment portfolio, balancing high-yield opportunities with consistent growth, serves as a powerful engine for generating passive income and building enduring wealth. By strategically adjusting allocations and maintaining a focus on high-quality, well-managed assets, investors can create a resilient financial future. This proactive approach to portfolio management, grounded in careful analysis and forward-thinking strategy, empowers individuals to achieve their financial aspirations and navigate market fluctuations with confidence and optimism.