Building a dividend portfolio isn’t just about chasing the highest dividend yields — it is about finding the right balance between reliable income, diversification, and long-term growth potential.

With $250,000 to invest, you could create a mix of quality Australian dividend stocks and ETFs that together could deliver around a 5% yield, while also positioning your capital to grow over time.

Here’s how I would do it.

Start with a strong income ETF

To give the portfolio instant diversification and exposure to many of the ASX’s best dividend payers, I would allocate a portion to the Vanguard Australian Shares High Yield ETF (ASX: VHY).

This popular ETF targets Australian shares with…