Income Strategy

Our income strategy is designed to generate reliable income while also providing portfolio growth in up markets and some measure of protection in down markets. This strategy typically yields more than the overall stock market. Since 2021, the yield of the SAM income portfolio has been about three times the dividend yield of the S&P 500, according to data provider FactSet. This is not a typical Wall Street income approach. What I mean by that is we aren't simply stuffing the portfolio with bonds and a handful of stodgy dividend paying stocks and calling it a day. Yes, we invest in bonds and certainly some blue chip dividend payers, but there's a lot more to the income investment universe. That includes preferred stocks, REITs, closed end funds, and merger arbitrage opportunities, just to name a few. By investing across a broad range of securities with different characteristics, we can not only seek higher yields, but also try to reduce risk. Ultimately, this approach could provide us with higher risk adjusted returns. We take a shareholder yield approach to selecting investments for the income portfolio. That means that we consider various ways that companies can distribute cash to shareholders, such as share buybacks and special dividends in addition to regular dividend distributions. We also look beyond current yield to include growing companies that we believe will increase their dividends in the future. Our income strategy takes an accurate approach. We know that we believe in the future. We know that we believe in the future. We know that the different categories of the income investment universe will do better or worse depending on market conditions. So we're willing to invest where we see the most potential and avoid areas with poor risk to reward ratios. For example, with yields near rock bottom, we completely avoided owning bonds in 2021 and most of 2022. We did opportunistically invest in them when yields had gotten much higher. If you like the idea of an approach that's more active than typical Wall Street income portfolios, you're looking to generate reliable income, you're looking to generate reliable income, you have the appropriate risk tolerance, and a truly diversified approach is appealing to you, then the income approach could absolutely be a great fit for you.