eToro Dividend Growth
eToro Dividend Growth Copy Portfolio Review
How to Invest in Dividend Stocks? (eToro Dividend Growth Copy Portfolio)
If you are interested in investing in Dividend stocks but don't have the time to research or manage, eToro has the solutions, a ready-make dividend investment portfolio, and a strategy. All you have to do is invest a minimum of $500 and let eToro's investment committee invest your money for you.
The eToro Dividend Growth Smart Portfolio contains companies that have shown growth in dividends for the past 20 years. Etoro decides the weight of each stock in the portfolio by 4 metrics:
Market cap (A solid company with an established market capital)
Beta rating (Measures market risk and volatility in search of low-volatility stocks)
5-year average dividend yield (looking for growth in the dividend year by year)
Short-term dividend yield (trailing 12 months performance of the dividend payout)
The eToro Dividend Growth Copy Portfolio is perfect for beginners and is relevantly low risk as you are investing in stable companies that have shown solid growth in the past 20 years. The DividendGrowth portfolio aims to make it easier for retail investors to invest in dividend-paying stocks by doing research for them and offering a minimum investment of $500 for a portfolio of 40 dividend-paying stocks.
Investing in companies with high dividends has become more popular as it allows investors to earn additional income in addition to potentially increasing the value of their portfolio. eToro's DividendGrowth CopyPortfolio includes strong, high dividend-yielding companies across various sectors including utilities, oil and gas, pharmaceuticals, and telecommunications. The portfolio selection process begins by identifying companies that have a history of paying consistently increasing dividends per year for at least 20 years. Then, each stock is evaluated based on various metrics including market capitalization, liquidity, financial ratios, and analysts' consensus ratings. The top-ranked stocks are then included in the portfolio and weighted accordingly.
Please note:
The dividend is held in the smart portfolio till the end of the year rebalances, when the dividends are reinvested, to receive the dividend in cash you need to close the whole portfolio. Also, a 30% tax is automatically charged on US stocks, even if you live in the UK, where a discounted rate of 15% should be applied.
Annual Dividend Profits from the Top 6 Stocks
If you invested $1000 for 1 year
Rates as of the 17th of April, 2022
Lockheed Martin
Invested 3.30% of $1000 = $33.30
Dividend Profit $0.77
Tax $0.23
Net Profit $0.54
(Net Profit on 10K $5.40)
(Dividend paid per share $10.80, Dividend yield 2.31%)
IBM
Invested 3.03% of $1000 = $30.30
Dividend Profit $1.57
Tax $0.47
Net Profit $1.10
(Net Profit on 10K $11)
(Dividend paid per share $6.56, Dividend yield 5.18%)
Chevron
Invested 3.01% of $1000 = $33.10
Dividend Profit $0.95
Tax $0.29
Net Profit $0.66
(Net Profit on 10K $6.60)
(Dividend paid per share $5.44, Dividend yield 3.17%)
NextEra Energy, Inc
Invested 2.82% of $1000 = $28.20
Dividend Profit $0.54
Tax $0.16
Net Profit $0.38
(Net Profit on 10K $3.80)
(Dividend paid per share $1.58, Dividend yield 1.91%)
Lowes Companies, Inc
Invested 2.78% of $1000 = $27.80
Dividend Profit $0.44
Tax $0.13
Net Profit $0.31
(Net Profit on 10K $3.10)
(Dividend paid per share $3.20, Dividend yield 1.59%)
PepsiCo
Invested 2.74% of $1000 = $27.40
Dividend Profit $0.69
Tax $0.21
Net Profit $0.48
(Net Profit on 10K $4.80)
(Dividend paid per share $4.30, Dividend yield 2.50%)
Totals Profits of the 6 stocks
6 stocks make up 17.68% of the total portfolio
Dividend Profit $4.96
Tax $1.49
Net Profit $3.47
(Net Profit on 10K $34.70)
Estimation of 100% of the portfolio using the figures above
Estimated Net Profit $19.63
(Estimated Net Profit on 10k $196.30)