Add Income to Your Income
With Dividend Plus, ZEGA takes a traditional investment idea, owning dividend paying stocks, and attempts to double down with covered calls. The multi-stage filtering process builds a portfolio of stocks paying over 4% annually in dividends. Then we layer on our options trading expertise to try and add another 4% by selling covered call options, traditionally considered a conservative strategy. The potential 8% cash generation can keep your income stream ahead of current inflation rates. And doesn't add any fixed income-related risk like bond defaults or rising interest rates.
Dividend Plus stock selection process
In ZEGA's selection process, first we build a basket of 15 to 25 stocks each paying an annual 4% or greater dividend. Selected stocks must provide sector diversification and liquid option markets. Next, we put the “Plus” in by utilizing a covered call layer aiming at an additional 4% income
Performance Tear Sheets
DOCUMENTS
Performance
Dividend Plus
| as of 03/31/2024 | MTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
ITD |
| Div Plus Net* | 4.46% | 8.65% | 18.10% | 10.97% | |||
| Benchmark(Russell) | 5.00% | 8.98% | 17.08% |
Note: Returns are expressed in US Dollars and calculated net of actual fees. Performance includes reinvestment of dividends and other earnings.
ZEGA Financial is a registered investment adviser and investment manager that specializes in derivatives. ZEGA is a separate accounts manager and all returns expressed herein are solely from the separate accounts business within ZEGA.
The benchmark is Russell 1000 Value Total Return . ZEGA Financial claims compliance with the Global Investment Performance Standards (GIPS). To receive a full list of composite descriptions of ZEGA Financial and/or a presentation contact Jay Pestrichelli at 1-800-380-9342, ext 101 or jay.pestrichelli@zegafinancial.com.
All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance, and clients should not assume, that future performance of any of the model portfolios will be comparable to past performance.
These results should not be viewed as indicative of the advisor’s skill. The prior performance figures indicated herein represent portfolio performance for only a short time period and may not be indicative of the returns or volatility each portfolio will generate over a long-time period. The performance presented should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information. The actual results for the comparable periods would also have varied from the presented results based upon the timing of contributions and withdrawals from individual client accounts. The performance figures contained herein should be viewed in the context of the various risk/return profiles and asset allocation methodologies utilized by the asset allocation strategists in developing their model portfolios and should be accompanied or preceded by the model. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility.