Money with a graph overlayed

Dividend Income

Our Dividend 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 Dividend 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

Dividend Income is offered by Parametric Investment & Overlay Strategies.  For additional information please visit the Disclosure page.

Explore solutions suite
Non-Traditional Alpha
View other strategies in this solution suite.
Explore solutions suite
Non-Traditional Alpha

Connect with our team on this strategy

{F33BD959-1499-4857-91FB-3B0EF4ADCB43}

Loading...