How to Invest in Dividend Stocks?

eToro Dividend Growth

eToro Dividend Growth: Smart Portfolio Review

How to Invest in Dividend Stocks? (eToro Dividend Growth Smart 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 strategy.


All you have to do is invest with 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 a 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)


Please note:

The dividend are held in the smart portfolio till the end of the year rebalance, when the dividends are reinvested, to receive the dividend in cash you need to close the whole portfolio. Also, 30% tax is automatically charged on US stocks, even if you live in the UK, where a discounted rate of 15% should be applied.


The eToro Dividend Growth Smart 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.

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%)

eToro Dividend Growth: Smart Portfolio Review

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%)

 Dividend stocks

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%)

Dividend profits

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)