- An in-depth look at the latest addition to our portfolio of investment solutions
- Designed to capture high levels of income and growth over time.
- Over 4.5% in cash generation alone.
Following the success of it’s Dogs of the Dow and Dogs of the S&P 500 Portfolios, we now take an in-depth look at the latest addition to our portfolio of investment solutions, the Income Aristocrats Portfolio. A remarkably well diversified portfolio, the income aristocrats effortlessly blends three different portfolio strategies (Fixed Income 2, Dogs of the S&P 500, and the Dividend Aristocrats) into an excellent vehicle for generating cash flow.
Designed to capture high levels of income and growth over time, providing bond-like cash flow with two thirds of the portfolio focusing on growth and potential growth of income over time. The Income Aristocrats are turning out to be one of Durig’s most comprehensive portfolio strategies yet, and has produced 4.71% in cash generation alone.
- 4.71% in Cash Generation Alone
- Annualized Period Return of 11.21% (6-6-17 through 12-19-19, annualized)
A multi asset portfolio strategy like Durig’s Income Aristocrats allows investors to participate in a wider diversity of asset types and business sectors. The blend of three different strategies contained in Durig’s Income Aristocrats Portfolio encircle two vastly divergent asset types- blue chip equity and corporate bonds.
Typically non-correlated assets, stocks and bonds counteract each other in Durig’s Income Aristocrats Portfolio to create a relatively neutral portfolio with far less historical volatility than stocks alone.
Multi asset strategies such as Durig’s Income Aristocrats Portfolio can help to enhance flexibility and mitigate downside risk. Multi asset strategies also help to diversify investment risks in general.
A recent article by Forbes considers the merits of multi asset strategies in light of our present economic landscape:
“There’s no stopping the U.S.-China trade war..In terms of investments, what this means is increased volatility across two of today’s most mainstream asset classes – equities and fixed income.This is where a multi-asset strategy can come into play because it allows exposure to a broader range of assets and sectors.”
The Income Aristocrats Portfolio combines three of Durig’s historically successful portfolio strategies, with the three strategies working in tandem to create what is likely its most holistic portfolio yet, providing greater exposure to some of the higher yielding investments of a variety of asset types, industries and exchanges.
By taking a multi-asset approach to investing, the income stream that is produced (and the portfolio as a whole) becomes remarkably well diversified and is far more stable than the income stream of a single asset strategy.
The vast diversity of assets, cash flows, and industries in the portfolio enable investors to participate in the movements of both stock and bond markets, with non-correlated assets working together to help reduce historical volatility.
Diversification Increases Stability
A recent article revealed a frightening statistic, where up to 33% of Americans are living paycheck to paycheck. With all of the insecurities inherent in the world of today, one thing we never want to be uncertain of is our income, and the Income Aristocrats have emerged as a possible solution.
How secure is your income? Do you need more stability? A higher income? Income growth?
Fashioned with security in mind, Durig’s Income Aristocrats Portfolio captures the cash flows of two non-correlated asset types, three successful income-focused strategies, and dozens of companies that span numerous industries to achieve a level of income diversification that has the potential to improve your standard of living in retirement.
The coupon interest that is produced by the corporate bonds in the portfolio combined with a high level of blue chip dividends allow for superior income generation, and aristocratic blue chip dividends help to passively stabilize and grow income over time, hopefully allowing investors to sleep peacefully at night.
The end product of Durig’s multifaceted approach to diversification is a stable income stream with over 4.5% in cash generation alone, and the potential for substantial growth over time.
Without growth, the best one can do is keep up with inflation.
The blue chips in the Income Aristocrats are the largest contributors towards principal growth and tend to move up in price with time, whereas the corporate bonds held in the portfolio are very effective in generating income through coupon interest payments.
Growth appears even more pronounced over time as these dividend increases are compounded and the dividends of the blue chip aristocrats are increased and reinvested.
Registered Financial Advisors such as Durig are fiduciaries and have a duty to always act in the best interests of their clients. Because of this, the incentive structure is built in to the relationship to accomplish just that, with the advisors’ incentive tied to the client’s success. When the investor makes more, the advisor makes more – plain and simple.
Relationships where the interests of both parties are aligned help to reduce or eliminate conflicts of interests.
Durig’s Income Aristocrats Portfolio was designed to generate high (and growing) levels of cash flow over time from different asset types stretching across many industries, companies and exchanges. The non-correlated assets in the portfolio help to provide an unrivaled level of diversification, and helps considerably in reducing portfolio volatility as well as downside risk. Reduced volatility gives investors the freedom to broaden their investment exposure and participate in fixed income and equity trends to produce dependable and potentially growing income over time.
For investors seeking a highly diversified, multi asset, high income portfolio, designed to for stability in income with the high potential for growth over time, Durig believes its Income Aristocrats Portfolio is an outstanding solution that helps you sleep peacefully at night with professional management and dedicated support, at a very low cost.
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Durig Capital provides investors with a specialized, transparent fiduciary service at a very low cost. Most of our client accounts are custodied in their own name at TD Ameritrade Institutional, a large discount service provider that is SPIC insured, or at Interactive Brokers.
Disclaimer: Any content on this review should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades investments to make. Invest with only risk capital; that is, with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.
Durig Capital is not responsible for any losses incurred as a result of this article Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Performance is reported net of fee, as of 12-19-19, annualized period return is a weighted average of FX2, Dogs of the S&P, and Dogs of the Dow Portfolio returns for the period 6-6-17 through 12-19-19.