SAM Income

What is Income?

The Income strategy offered by Stansberry Asset Management, LLC (“SAM”) prioritizes generating reliable income while also providing growth in up markets and protection in the event of a significant market downturn. This strategy typically yields significantly more than the overall stock market. To generate meaningful yield and to diversify risk, the Income strategy looks for investment opportunities beyond the traditional income universe.

Income is an actively-managed strategy. The risk-reward dynamics of different types of income-generating investments are constantly changing. We adjust the Income strategy to increase the reliability of income streams, reduce risk, and to capture upside total return potential.

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The Benefits of Diversification

Diversification provides a higher risk-adjusted investment return. We prioritize true diversification. This is accomplished not by simply owning a basket of securities, but by targeting investments with different characteristics from one another. This reduces factor risk and the likelihood that Income positions move in lockstep with each other.

There is a lot more to the income investment universe than bonds and dividend-paying stocks. We aim to generate diversified income streams by looking for opportunities across several investment types.

Blue Chips

Midstream Oil & Gas

Buybacks

Preferred Stocks

Precious Metal royalty Companies

Merger Arbitrage

Mortgage REITs

Speciality REITs

Equity REITs

Fixed Income Securities

Frequently Asked Questions for Our Income Strategy

What is the Goal of the Income Strategy?

Many investors seek alternatives to low-yield savings accounts and unpredictable markets in today’s volatile economy. At Stansberry Asset Management (SAM), our Income atrategy focuses on building a diversified portfolio that adapts to market conditions while emphasizing income and capital preservation. 

Unlike passive approaches that often rely heavily on a single asset class, such as bonds, our approach dynamically allocates across a range of yield-producing investments, including dividend-paying stocks, fixed-income instruments, real estate investment trusts (REITs), preferred securities, and other alternative assets.

The strategy’s broader goal is to help investors achieve financial independence, regardless of the market cycle. Whether drawing income to fund your lifestyle or reinvesting for compounding growth, our Income strategy is built to serve your long-term financial goals.

Volatility is inevitable in investing, but it doesn’t have to derail your objectives. Our Income strategy is specifically structured to help mitigate the impact of market fluctuations through strategic diversification and active management.

During periods of high volatility, passive portfolios often suffer from a lack of flexibility. Our active approach allows us to rotate out of underperforming assets and into more stable, income-producing opportunities. This responsiveness is a key strength of our Income investment strategy.

We also emphasize quality. Our Income strategy favors assets with strong fundamentals, such as companies with healthy balance sheets, reliable dividend histories, and resilient cash flows. In volatile markets, these attributes provide an important buffer. We also manage duration risk and credit risk in the fixed-income portion of the portfolio, helping protect against interest rate swings and potential defaults.

Moreover, our analysts continuously monitor macroeconomic indicators to guide tactical decisions. When conditions warrant, we may increase allocations to defensive sectors, adjust bond durations, or move into alternative income sources like infrastructure funds or commodity-linked securities. This proactive oversight helps reduce drawdowns while maintaining your income stream.

In short, our Income strategy is built to endure. While no approach is immune to volatility, our active and diversified methodology gives your portfolio a better chance of weathering market storms without sacrificing income.

The strength of the Income strategy lies in its multi-asset approach. Rather than relying on a single source of yield, we draw from a vast universe of investments that improve income potential while offering various risk-reward profiles.

Some of the core asset classes typically included in our Income investment strategy are:

  • Dividend-paying equities: Companies with strong balance sheets and a history of consistent dividend payouts. These stocks often provide attractive yields with the potential for capital appreciation.
  • Corporate bonds: Investment-grade and high-yield bonds offer steady interest payments and are selected based on issuer quality, duration, and risk.
  • Municipal bonds: Tax-advantaged income streams can be attractive, especially for investors in higher tax brackets.
  • Real Estate Investment Trusts (REITs): REITs can provide high yields and exposure to tangible assets, offering income and a hedge against inflation.
  • Preferred stocks: These hybrid securities offer fixed dividend payments and rank higher than common stocks in the capital structure.
  • Closed-end funds and ETFs: These are selected for yield-enhancing opportunities in niche areas of the market.
  • Master Limited Partnerships (MLPs): Energy and infrastructure partnerships that can generate high cash distributions.

This diverse mix allows us to tailor the Income strategy to different risk tolerances and economic cycles, enhancing the reliability of your income stream.

While all investments involve some degree of risk, our Income strategy is designed to keep it within a range that aligns with most income-focused investors. It’s neither overly conservative nor aggressively speculative. Instead, we manage to strike a balance between income generation and capital preservation.

Risk is mitigated through diversification across asset classes, sectors, durations, and geographic regions. We also avoid overconcentration in any single holding, industry, or market segment. This structure reduces the impact of poor performance in any one area of the portfolio.

Another key aspect of risk management is our active oversight. Our portfolio managers continually monitor risk exposures and adjust positions accordingly. For example, when interest rates are rising, we may shorten bond durations or increase allocations to floating-rate instruments. If equity volatility is high, we may pivot to higher-quality dividend payers or shift to sectors that historically perform better in downturns.

In short, while no income investment strategy can eliminate risk, we apply a disciplined, thoughtful approach to managing it—keeping risk aligned with the strategy’s purpose and long-term goals.

Income consistency is at the core of our approach. We understand that many investors rely on regular income to meet essential living expenses, reinvest for future growth, or maintain a comfortable retirement lifestyle. That’s why our Income investment strategy is built on securing sustainable and reliable income streams.

Our methodology focuses on disciplined selection, strategic diversification, active portfolio oversight, and tactical enhancements that work together to smooth out market variability while preserving income potential. 

Here’s how we pursue this level of consistency:

Quality Screening with a Long-Term Lens

Our strategy’s foundation is a rigorous screening process that identifies investments with dependable income histories. We target:

  • Dividend-paying companies with established business models, competitive advantages, and strong free cash flow. These companies typically have a track record of paying and increasing dividends over time, even during downturns.
  • Investment-grade corporate bonds issued by companies with stable credit ratings and predictable revenue streams. These fixed-income vehicles form a bedrock of steady interest payments.
  • REITs with diversified property holdings and consistent rental income offer attractive yields with exposure to tangible assets.
  • Preferred securities and other hybrid instruments that offer fixed or floating payments typically hold seniority over common equity in the capital structure.

This focus on quality aims to reduce the risk of income disruption due to credit events, dividend cuts, or defaults.

Strategic Diversification Across Income Sources

We don’t rely on a single income-producing asset or sector. Instead, we spread exposure across various asset classes, industries, and geographies to create multiple independent income streams. 

The benefit of this structure is that when one income stream faces headwinds, others may remain stable or even outperform. This diversification helps reduce income volatility and provides a smoother overall return profile.

Active Rebalancing and Market Responsiveness

Market conditions evolve, and income opportunities shift. That’s why our Income strategy is actively managed. Our investment team continuously monitors global markets, sector performance, interest rates, inflation trends, and company fundamentals to identify shifts that may affect your income stream.

This active oversight helps us to preserve income while maintaining a risk profile that aligns with your financial goals. Rebalancing is not just about maintaining target allocations. It’s a proactive way to capture new sources of income as they emerge.

Tactical Income Enhancements

In addition to core income investments, we incorporate advanced yet prudent strategies that can enhance yield when market conditions are favorable. The goal is not to chase yield but to enhance it without exposing your capital to unnecessary risk.

Consistency, Not Uniformity

It’s important to clarify that consistency in income doesn’t mean that every month or quarter will deliver an identical dollar amount. Different asset classes have different payment cycles, and cash flow timing will vary. Over time, we strive for reliability which looks like a steady, dependable stream of income that helps meet your cash flow needs across market environments.

Ongoing Review and Client Alignment

Finally, we don’t just set the Income strategy and walk away. Our relationship with clients is built on proactive communication. We conduct periodic portfolio reviews to ensure the plan continues to align with your financial objectives, risk tolerance, and lifestyle needs.

As markets shift, interest rates move, or your life circumstances change, we remain engaged and responsive. Our goal is not only to generate income but also to generate the right income for you.

Yes, income generated through the Income strategy can be accessed regularly, depending on your preferences and account setup. Most investors choose between two primary options:

  • Distributions: You can elect to receive periodic income distributions, such as monthly or quarterly. This setup is ideal for retirees or anyone seeking predictable cash flow.
  • Reinvestment: Alternatively, income can be reinvested back into your portfolio. This is useful for investors still in the accumulation phase who want to compound their returns over time.

Your advisor will work with you to determine the proper distribution schedule and method of access.

If your Income strategy account is part of a retirement plan like an IRA, there may be IRS-required minimum distributions (RMDs) to consider after a certain age. We’ll help ensure compliance while aligning the payout schedule with your goals.

You can change your income access preferences at any time. The Income investment strategy’s flexibility makes it easy to adapt to changing financial circumstances.

The minimum investment required for the Income strategy is $100,000. However, to become a client of Stansberry Asset Management, a minimum of $500,000 in total investable assets is typically required. This structure allows us to build a properly diversified portfolio across multiple strategies and apply the active management we believe is essential for long-term success.

We understand that every investor’s situation is unique. If you’re unsure whether this amount makes sense for you, our team is happy to review your financial goals and discuss whether the Income strategy aligns with your needs. In some cases, we may provide tailored solutions or alternative entry points.

This minimum also ensures that your account can benefit from institutional-level management, professional oversight, and portfolio customization. We aim to make your money work harder through smarter allocation, consistent income, and disciplined risk management.

Inflation is a hidden tax that erodes the purchasing power of your money over time. Our Income strategy includes built-in measures to help guard against this threat.

  • Real Asset Exposure: Investments in sectors like energy, infrastructure, and real estate tend to perform well during inflationary periods because they own physical assets whose value can rise with prices.
  • Floating-Rate Securities: These bonds adjust their interest payments based on prevailing rates, often rising alongside inflation.
  • Dividend Growth Stocks: Companies with pricing power can pass increased costs to consumers, allowing them to maintain profitability and grow dividends even in inflationary environments.
  • Tactical Positioning: When inflation indicators spike, we may shift asset allocations to emphasize sectors that historically outperform in such environments. This active management helps reduce the impact of inflation on your overall income and portfolio value.

While no income investment strategy can eliminate inflation risk, our diversified and adaptive model offers a strong line of defense.

Yes, there are fees associated with the Income strategy, which are clearly disclosed and competitively structured. Fees typically include:

  • Management Fees: These cover the cost of professional oversight, research, and ongoing portfolio management.
  • Fund or ETF Expenses: Some of the portfolio’s underlying investments may have embedded costs, especially if they are funds or ETFs.
  • Trading or Custodial Fees: Depending on your custodian, you may encounter transaction costs or account maintenance fees.

At Stansberry Asset Management, we believe in transparency and value. We don’t charge commissions, and our fee structure is designed to align our success with yours. The goal is to deliver consistent income and long-term value that far outweigh the costs of management.

Before you invest, we’ll provide a full fee breakdown so you know exactly what to expect—and, more importantly, what you’re receiving in return.

We offer multiple ways for you to stay informed about your Income strategy portfolio and its performance:

  • Customized Client Portal & App: Access your account online 24/7 through our secure client portal and customized app. View your investment holdings, transactions, income distributions, and performance reports.
  • Quarterly Reports: Receive detailed performance summaries each quarter, including market commentary, strategy updates, and insights into asset allocation.
  • Dedicated Wealth Manager: As a client, you’ll be assigned a dedicated wealth manager and a customer service associate who provide personalized support tailored to your individual needs. Your wealth manager is available for regular portfolio reviews, strategic updates, and goal-based conversations—helping you stay on track as your life evolves and markets change.

Transparency builds trust. Our communication strategy ensures you’re never in the dark about your investments, returns, or the path forward. With our team, you can confidently pursue your income objectives, knowing that your portfolio is being managed and monitored.

Our Income strategy could be the solution if you’re looking for a smarter way to generate reliable income without compromising long-term security. Contact our team to discuss how this approach can be integrated thoughtfully into your overall wealth strategy.