Trade Alert – Equity, ETF & Dividend Growth Models
Today, we are conducting tax-loss sales to offset previous profit-taking in the Equity and Dividend Growth models. At the same time, we are adding some defensive, dividend positions to start preparing for what could be a more volatile 2026. This is a topic we are touching on in tomorrow’s Daily Market Commentary – RIA:
“As discussed yesterday, the significant outperformance of growth stocks over value is creating a potential opportunity, particularly when valuations are elevated. As shown, forward valuations (which are the most optimistic) are currently at levels where forward 5-year returns are expected to decline. By adding stocks with high dividends, we “get paid to wait” while adding a defensive hedge to our growth positions.”
While there is no guarantee that 2026 will result in lower returns, given the massive outperformance over the last 3 years, it seems prudent to at least consider some defensive positioning.
In the ETF model, we are adding a starter position in the same type of defensive dividend holdings, but we are not making any sales in that model currently.
Equity Model
- Sell 100% of PG for the tax loss.
- Buy 2% of the portfolio each in VZ and MO.
Dividend Equity Growth Model
- Sell 100% of KMB for the tax loss sale.
- Buy 3.33% of the portfolio in AES.
ETF Model
- Buy 2% of the portfolio in the Global X Super Dividend ETF (DIV)
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Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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