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income strategy

The Moby Flagship Income Portfolio

portfolio strategy Mar 24, 2022

In case you missed it, we released a dividend focused strategy last monthThe Moby Flagship Income Strategy

This type of strategy focuses on large companies that have steadily increased their dividends over the last 10 years and have a strong chance of continuing to pay their dividends into the future.

What are the benefits of high dividend stocks?

Dividend stocks serve two main purposes for us:

  1. They give us a consistent source of passive income.

  2. They also give us the opportunity to re-invest those dividends for continued wealth generation!

Performance Summary:


Performance Review:

The strategy is up a modest 1% over the past month, in terms of price return, but the purpose of this strategy is not price return. We are focused on Total Return.

Total Return includes the dividends. So while the S&P 500 was up around 5% over the last month, the average dividend yield is about 1.3%. But our Dividend Strategy expected dividend yield was 3.8%!

So adding those together we get a total return of 4.8% which closely matches the markets return -- which truly excited us. The reason it does this is that high dividend-paying strategies are inherently less risky. Less risk = less return potential.

Therefore if we're able to closely match the market's performance while taking less risk, that's a massive win!

Old Portfolio:

New Portfolio: