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Dividend Income


Parametric's Dividend Income Strategy provides clients with a diversified portfolio of durable dividend payers to help create a reliable source of income. We aim to outperform the Russell 1000® Value Index on a total-return basis over a full market cycle.

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Dividends have historically been a meaningful component of total return for stocks, with dividend payers outperforming nonpayers in both bull and bear markets*. Dividend stocks also benefits from capital appreciation and can help clients build wealth faster because of their growing capital base.



*Source: Professor Kenneth French, Tuck School of Business, Dartmouth, for the time period of July 1927 through December 2020. High-dividend payers are the top 30% of the universe of yielding stocks, market cap-weighted, and reconstituted. This information is provided for illustrative purposes only. It is not representative of any client account or composite.


The investment strategy described herein is 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 the strategy offered and distributed by our affiliate, Eaton Vance Distributors, Inc., a registered broker-dealer.

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COMMODITY >>
EMERGING MARKETS >>
INTERNATIONAL EQUITY >>

Why choose Parametric?

$475.1B+

Total firm AUM

191

Investment professionals

30+

Years of equity experience

As of 12/31/2023

How it works

  • Security filtering
  • Security selection
  • Rebalancing
We filter out companies that don’t pay dividends from the Russell 3000® Index universe and rank securities on yield and risk metrics within each sector. 
We weight the top 20 names within each market sector equally, maintaining a portfolio of approximately 200 stocks.
We rebalance back to our original equal weights on a quarterly basis and reconstitute membership annually.
Security filtering
We filter out companies that don’t pay dividends from the Russell 3000® Index universe and rank securities on yield and risk metrics within each sector. 
Security selection
We weight the top 20 names within each market sector equally, maintaining a portfolio of approximately 200 stocks.
Rebalancing
We rebalance back to our original equal weights on a quarterly basis and reconstitute membership annually.

Intended benefits of Dividend Income

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After-tax income

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Dividend Income can give clients a similar income stream to bonds but with far more favorable tax rates.




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Inflation protection

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Dividend-paying stocks have historically offered better inflation protection than other sources of income.

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Consistency

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We identify consistent dividend payers that deliver durable payouts year in and year out—not the highest-yielding stocks, which can add volatility to a portfolio.





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