Willingdon Views

09/20/17: I Was a Lighthouse
Today, we seem surrounded by fears, yet the stock market is trading close to an…
08/24/17: Blame
To paraphrase Winston Churchill, if our country were to last a thousand years, would they…
07/20/17: Regular Folks
Mark Zuckerberg, the founder of Facebook, and one of the world’s richest men, is on…

Strategies & Performance

ira equity income portfolio

Current Strategy

Top 10 Holdings
   
Eaton Vance FL Rate Bank of America Pfd
IShares US Pfd Stock ETF BGC Partners Inc.
Wells Fargo Pfd Royal Dutch Shell ADR
US Bancorp Pfd Bank of Nova Scotia
HSBC Bank Pfd IShares IBoxx High Yield ETF

Generating steady income from traditional fixed income investments is currently a challenge due to the low interest rate environment. The Equity Income Portfolio attempts to overcome this by building a diversified portfolio of income generating securities across asset classes and sectors. While this portfolio does contain more risk than traditional high quality bonds, we believe the long-term risk is lower compared to a strategy of holding long-dated or lower quality bonds.  Given the uncertainties we see in the market, we increased the defensiveness of the portfolio this past month.  We increased the weighting in utilities and reduced cyclicality by selling two materials stocks.  Our process continues to focus on selecting high quality securities with strong balance sheets and sustainable free cash flow.  The current dividend yield of the portfolio is 5.11%.

ira equity income

This investment strategy is not a recommendation to buy or sell any of the securities mentioned. Past performance is not a guarantee of future results.