A Platinum member submitted the following portfolio for analysis. The portfolio is designed to throw off income for a retiree and as you can see, the historical yield is a very high 4.6% so the portfolio is meeting that goal. Take note that the portfolio outperformed the S&P 500 and did it with much lower risk.

The projected return over the next six to twelve months is 7.6% or very close to our goal of 8.0%. This projection is assuming the S&P 500 will grow at 7.0% per year. The projected standard deviation is 15.1% is just a tad over the desired upper limit of 15.0%. The Diversification Metric at 36% is just shy of the 40% goal. This is not a serious deficiency. What do other readers have to say about this portfolio? Would you employ the ITA Risk Reduction model to hold down volatility or would you just let this dividend oriented portfolio run?

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