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US Equity Income

Our US Equity Income strategy seeks to build a diversified portfolio of durable dividend payers in order to provide a steady source of dividend income while outperforming the NASDAQ Dividend Achievers Select index on a total return basis.

Strategy goals

The Parametric US Equity Income strategy consists of a diversified portfolio of dividend-paying U.S. equity securities. The strategy seeks to build a diversified portfolio of durable dividend payers in order to provide a steady source of dividend income while outperforming the S&P 500® Index on a total return basis. The strategy identifies an initial universe of sensible dividend payers and seeks to avoid the consequences of concentrated allocations by equally weighting sectors and securities within each sector.

Investment philosophy

We utilize an engineered and disciplined approach to construct a portfolio of durable dividend payers.


 

Sector Allocation

 

  • Equally weight all nine sectors
  • Technology and Telecommunications combined, due to lack of dividend payers

 

Security Filtering/Ranking

 

  • Filter Russell 3000 universe
  • Rank on yield and volatility metrics within sector

 

Security Allocation

 

  • Within each sector, equally weight the top 20-25 ranked securities
  • ~200 securities, equally weighted

 

Rebalance

 

  • On a monthly basis, rebalance the portfolio back to equal weights
  • Reconstitute membership annually

How to invest and related products

The Parametric US Equity Income Strategy is designed to be implemented in a separately managed account (SMA) maintained by a qualified custodian. Investors should contact their financial advisor to establish an SMA. Parametric also subadvises a fund with a similar strategy, offered and distributed by our affiliate, Eaton Vance Distributors Inc., a registered broker-dealer. Learn more*

*We provide a link to the Eaton Vance website for your convenience only. It is for informational purposes only and is not an offer to buy or sell any security. Although Parametric is an affiliate of Eaton Vance, Parametric does not administer the website or control any of its content. Accordingly, this link is provided as is, without representation or warranty, express or implied, as to the accuracy of such content or its completeness or timeliness, all of which (including, without limitation, any implied warranties of merchantability or fitness for a particular purpose) Parametric expressly disclaims. This link’s appearance on Parametric’s website should not imply our endorsement of the linked site or its content. Parametric is not responsible for your use of the linked site, its content, or any other resources (including, without limitation, other linked sites and their contents) accessible through it. If you choose to leave this website and visit the linked site, you will be subject to its terms of use and privacy policies. By continuing to the linked site, you acknowledge and agree to the foregoing. 

For additional information please visit the Disclosure page.

Connect with our team on this strategy

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