Willingdon Views

04/18/17: Viral, whatever...
Too often our first reaction to something strange happening isn’t to intervene, or offer a…
Today, we seem preoccupied with unyielding special interests, narrow viewpoints, and stubborn political posturing, but…
Two legendary champions played an epic tennis match at the Australian Open, and the winner…

Strategies & Performance

ira equity income portfolio

Current Strategy

Top 10 Holdings
Ares Capital Greenhill & Co Inc.
Macquarie Infrastructure Medical Properties Trust
Vodafone Group PLC HSBC Holdings Pfd
Wells Fargo Pfd US Bancorp Pfd
Eaton Vance FL Rate Crown Castle Intl

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.  This month, we added a mortgage REIT, Two Harbors Investment Corp. and a semiconductor company, Taiwan Semiconductor Manufacturing Co, an auto company, Ford Motor, added capital to a couple of REITs, and a fertilizer company, while reducing some healthcare companies.  While our barbell approach of holding higher beta and lower beta names was not rewarded in April as the market moved to low volatility and yield-oriented stocks, we still believe that if tax reform passes, the market will reverse course again. Our process focuses on selecting high quality securities that provide above average current dividends and a sustainable record of above average dividend growth. The current dividend yield of the portfolio is 5.9%.

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.