Insight
Spicing Up Your Portfolio? Equity Income's On The Menu
Income-paying equities—especially those that tend to increase dividends—can help maintain “real return” and stability in a primarily fixed income portfolio.
Authors
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Benjamin Adams, CFA
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James Argabright
3/25/2024
8 min read
Topic
Equities
Key takeaways
- To help prepare for unexpected inflation, investors in a primarily fixed income portfolio could add an overlay of dividend growth equities to the portfolio.
- Companies capable of consistently increasing their dividend payouts generally have resilient business models, and the dividend payments add stability to a portfolio.
- A systematic equity options strategy can add value to a portfolio by generating consistent income while mitigating risk.