– Portfolio of stocks that have consistently paid dividends over 20 years
eToro, the multi-asset investment platform, has launched a portfolio comprising stocks that have consistently paid investors a dividend over the past 20 years. The DividendGrowth portfolio makes investing in dividend stocks easier for retail investors, who might not have the time or knowledge to research a number of stocks.
Dividend-paying stocks are typically robust and established businesses but share prices might not have a competitive return on investment compared with younger, high-growth companies. A dividend strategy means investors could potentially benefit from a modest uptick in share price and also receive a payout for their loyalty to a company.
All stocks included in the DividendGrowth portfolio have consecutively paid out a dividend for the past 20 years. As well as screening for a consecutive dividend payment, eToro’s Investment Office built the portfolio based on market cap, beta, 5-year dividend average growth and previous year dividend yield.
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Yoni Assia, CEO and Co-founder of eToro, comments:Â “We believe that investing should be made as easy as possible for people. Ask any asset manager and they will say investing in dividend-paying stocks is one way to mitigate the downside of a volatile market. We know that not everyone has the time to research companies that pay a good and consistent dividend, so our new portfolio has already done the groundwork for them.Â
“Investing on eToro combines quality with convenience. The new DividendGrowth portfolio will mean, for a minimum investment of $2,000, investors can add 40 dividend-paying stocks to their overall portfolio and invest for the long term in one click.”
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eToro’s expanding list of portfolios to date have been designed to help make thematic investing easy for retail clients, enabling them to gain exposure to developments in renewable energy, big tech, drone and 5G technology. The DividendGrowth portfolio is the first in eToro’s 2020 roadmap to make traditional investment strategies more accessible for people.
Allocating part of an investor’s portfolio to dividend paying stocks is a common practice for long term investors. The portfolio comprises 40 companies from around the world, including Proctor and Gamble, Diageo, IBM, Pepsico, AT&T and L’Oreal.
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