Last Update: 31 August 2021

The High Yield Bonds Income Portfolio granted a 4.38% dividend yield in 2020.

It's a Low Risk portfolio and it can be replicated with 4 ETFs.

Portfolio Dividend Yield

The Dividend Yield of High Yield Bonds Income Portfolio is the result of the following asset allocation:

HIGH YIELD BONDS INCOME PORTFOLIO
DIVIDEND YIELDS (%)
Period: January 2020 - August 2021
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2021(*) 2020
High Yield Bonds Income Portfolio 2.20% 4.38%
Weight Components Dividend Yield (%)
25.00% EMB - iShares JP Morgan USD Em Mkts Bd 2.15% 4.00%
25.00% JNK - SPDR Barclays High Yield Bond ETF 2.52% 5.21%
25.00% SPLB - SPDR Portfolio Long Term Corporate Bond ETF 1.70% 3.36%
25.00% HYG - iShares iBoxx $ High Yield Corporate Bond 2.41% 4.96%
(*) Dividend Yield is calculated only for a portion of the year

Capital Growth and Dividends

In the following table, Capital Growth details (with and without dividend reinvestment) are represented.

If you are not interested in a periodic income and you need a strategy with a dividend reinvestment, please refer to the High Yield Bonds Income Portfolio: ETF allocation and returns page.

HIGH YIELD BONDS INCOME PORTFOLIO
CAPITAL GROWTH with or without dividend reinvestment
1000$ invested from January 2009 to August 2021
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Year
Dividend
Cumulative
Dividend
Cashflow
Portfolio
Value
EOY Capital
Amount Yield Effective
Ptf + Cashflow
Total Return
Div. reinvestment
1000.00
2009 98.58 9.86% 98.58 1136.66 1235.24 1235.23
2010 106.35 8.61% 204.93 1169.70 1374.63 1377.50
2011 92.33 6.70% 297.26 1197.45 1494.71 1502.50
2012 87.86 5.85% 385.11 1278.38 1663.49 1691.90
2013 89.67 5.30% 474.78 1205.51 1680.29 1685.14
2014 88.55 5.26% 563.34 1217.83 1781.17 1790.91
2015 91.83 5.13% 655.17 1107.41 1762.58 1720.36
2016 96.94 5.64% 752.11 1178.03 1930.14 1927.02
2017 98.28 5.10% 850.39 1221.33 2071.72 2096.12
2018 105.02 5.01% 955.40 1104.82 2060.22 2001.17
2019 106.36 5.32% 1061.77 1233.73 2295.50 2341.03
2020 102.60 4.38% 1164.36 1267.01 2431.37 2506.78
Aug 2021(*) 55.02 2.20% 1219.38 1257.82 2477.20 2543.62
(*) Dividend Yield is calculated only for a portion of the year WITHOUT
dividend
reinvestment
WITH
dividend
reinvestment

Column meaning:

  • Dividend -> Amount: Income returned over the year (or portion of the year)
  • Dividend -> Yield: Dividend Yield calculated on the starting price of the year
  • Cumulative Dividend Cashflow: Sum of all the dividends received
  • Portfolio Value: Investment Value, excluding dividends, at the end of year
  • EOY Capital -> Effective: Investment Value plus cumulative dividends
  • EOY Capital -> Total Return: Investment Value, with dividend reinvestment

Which are the global returns of the last periods? In the following table, the Effective Return considers the received (and not reinvested) dividends. Total Return is calculated assuming dividend reinvestment.

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Period Portfolio
Return
Effective
Return
Total
Return
Jan 2020 - Aug 2021 +1.95% +7.92% +8.65%
Jan 2018 - Aug 2021 +2.99% +19.57% +21.35%
Jan 2016 - Aug 2021 +13.58% +40.54% +47.85%
Jan 2014 - Aug 2021 +4.34% +47.43% +50.94%
Jan 2011 - Aug 2021 +7.53% +80.21% +84.65%
WITHOUT
dividend
reinvestment
WITH
dividend
reinvestment

Yearly Returns and Dividend Yield

Dividends are essential for the investor who needs additional periodic income. When dividends are not reinvested, how much is the real portfolio return over the years?

HIGH YIELD BONDS INCOME PORTFOLIO
HISTORICAL RETURNS AND DIVIDEND YIELDS
Period: January 2009 - August 2021
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Year Total Return Dividend Yield Return
Without Dividends
2009 +23.52% 9.86% +13.67%
2010 +11.52% 8.61% +2.91%
2011 +9.07% 6.70% +2.37%
2012 +12.61% 5.85% +6.76%
2013 -0.40% 5.30% -5.70%
2014 +6.28% 5.26% +1.02%
2015 -3.94% 5.13% -9.07%
2016 +12.01% 5.64% +6.38%
2017 +8.78% 5.10% +3.68%
2018 -4.53% 5.01% -9.54%
2019 +16.98% 5.32% +11.67%
2020 +7.08% 4.38% +2.70%
Aug 2021(*) +1.47% 2.20% -0.73%
(*) Dividend Yield is calculated only for a portion of the year

Actual Dividend Yield for long term investors

What would have been the annual Dividend Yield received by investors if they had implemented the High Yield Bonds Income Portfolio allocation over the past years?

E.g. If you had implemented it 3 years ago, how much would be your actual dividend yield today?

HIGH YIELD BONDS INCOME PORTFOLIO
ACTUAL DIVIDEND YIELD for long-term investors
Period: January 2009 - August 2021
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Starting Period
of the
Investment
Actual Dividend Yield over years
2015 2016 2017 2018 2019 2020 2021(*)
Jan 2009 9.18% 9.69% 9.83% 10.50% 10.64% 10.26% 5.50%
Jan 2010 7.43% 7.85% 7.96% 8.50% 8.61% 8.31% 4.45%
Jan 2011 6.67% 7.04% 7.13% 7.62% 7.72% 7.45% 3.99%
Jan 2012 6.11% 6.45% 6.54% 6.99% 7.08% 6.83% 3.66%
Jan 2013 5.43% 5.73% 5.81% 6.21% 6.29% 6.06% 3.25%
Jan 2014 5.45% 5.75% 5.83% 6.23% 6.31% 6.09% 3.27%
Jan 2015 5.13% 5.41% 5.49% 5.86% 5.94% 5.73% 3.07%
Jan 2016 5.63% 5.71% 6.10% 6.18% 5.96% 3.20%
Jan 2017 5.10% 5.45% 5.52% 5.32% 2.86%
Jan 2018 5.01% 5.07% 4.89% 2.62%
Jan 2019 5.31% 5.13% 2.75%
Jan 2020 4.38% 2.35%
(*) Dividend Yield is calculated only for a portion of the year

Collecting dividends is useful to obtain an additional income. Obtaining a large amount of income is the first step to financial freedom. However, if your need is to increase your capital as much as possible with dividend reinvestment, please refer to the High Yield Bonds Income Portfolio: ETF allocation and returns page.

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