Portfolio Strategies: SAM Income

Portfolio Strategies

SAM Income

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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.

Download Sheet

 

We take a ‘shareholder yield’ approach to selecting investments for the Income portfolio. That means that we consider various ways that companies can distribute cash to shareholders, such as share buybacks and special dividends, in additional to regular dividend distributions. We also look beyond current yield to include growing companies that we believe will increase their dividends in the future.

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

Blue Chips

Midstream Oil & Gas

Midstream Oil & Gas

Buybacks

Buybacks

Preferred Stocks

Preferred Stocks

Precious Metal Royalty Companies

Precious Metal Royalty Companies

Merger Arbitrage

Merger Arbitrage

Mortgage REITs

Specialty REITs

Specialty REITs

Equity REITs

Equity REITs

Fixed Income Securities

Fixed Income Securities

Attractive Yield

The SAM Income strategy offers an attractive yield compared to traditional income investments.

S&P 500
Dividend yield
S&P 500 yield 1.49%
S&P 500
Dividend
Aristocrats yield
S&P 500 yield 2.38%
10-Year
U.S. Treasury
S&P 500 yield 4.57%
SAM Income
Portfolio yield
S&P 500 yield 5.52%

yield data as of 6/30/23

Top 10 Holdings as of 9/30/2023

HOLDING TICKER WEIGHTING
US Treasuries — 16.51%
Shell PLC A Spons ADR SHEL 4.55%
Axis Capital Holdings LMTD AXS 4.46%
International Business Machines IBM 4.40%
Kinder Morgan Inc KMI 3.83%
HOLDING TICKER WEIGHTING
Lamar Advertising LAMR 3.82%
Blackstone Mortgage Trust Inc BXMT 3.67%
General Mills Inc GIS 3.55%
General Dynamics Corp GD 3.48%
CVS Health Corp CVS 3.38%