Parametric Dividend Income Investing: Frequently Asked Questions
Income investing is typically split into two approaches: active or passive. Yet for different reasons, both could expose investors to security and sector risks—and they’re both subject to adverse tax consequences.
To address these shortcomings, Parametric has pioneered a third style of income investing. Neither entirely active nor passive, Parametric’s Dividend Income Strategy seeks outperformance via a transparent, rules-based portfolio that emphasizes diversification instead of return forecasts.
In this paper, organized as a set of frequently asked questions, we explain traditional income-investing approaches and how our strategy differs.