Enhanced Dividend Income Portfolio - Capital Wealth Planning, LLC

Enhanced Dividend Income Portfolio

Investment Objective - Moderate Growth and Income

CWP’s Enhanced Dividend Income portfolio (EDIP) is an equity portfolio made up of mega cap, high quality, blue chip stocks that is diversified across the traditional 10 S&P 500 sectors. The allocation is strategically designed to deliver income by tactically selling short-term covered calls against 30-60% of the underlying holdings to generate additional income.

Highlights of the portfolio include:

CWP screens for growth and value stocks that have a history of increasing dividends and possess strong fundamentals
Designed to deliver an estimated annual cash flow of 4-7% gross of fees and commissions between dividend and covered call premiums, plus the potential for capital appreciation
Unlike a systematic covered call program, CWP is not obligated to continuously cover each individual equity position and limit capital appreciation
When one of the underlying stocks demonstrates strength or an increase in implied volatility, CWP managers identify that opportunity and sell call options tactically
To deliver an additional 2-3% of annual income, the portfolio does not have to be covered 100% of the time.
CWP actively manages sector allocation and opportunities to participate in defensive and cyclical trends given the relevant economic cycle

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DETAILED PERFORMANCE REPORT

“5-Star Overall Morningstar Rating™ out of 26 Derivative Income SMAs as of December 31st, 2021

Rating out of 26 Derivative Income SMAs as of December 31st, 2021. © 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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INSTITUTIONAL MONEY MANAGER & COVERED CALL ADVISOR NAPLES FLORIDA

At Capital Wealth Planning, LLC, we work as an institutional money manager in Naples Florida, offering institutional wire houses and regional broker-dealers throughout the country covered call portfolios through managed account WRAP platforms. The services provided are that of a registered investment advisor and include: managed portfolios, dividend paying stocks, income portfolio, covered call, cash secured puts and many others.

DISCLAIMER

IMPORTANT NOTE: Capital Wealth Planning, LLC, (CWP) is an SEC registered investment adviser. SEC Registration does not imply a certain level of skill or training. Capital Wealth Planning, LLC only transacts business in states where it is properly registered or in compliance with applicable state regulations. Individualized responses that involve actual or contemplated securities transactions or the rendering of personal investment advice for compensation will not be made absent compliance with all applicable investment adviser regulation requirements. Please contact the sender if there are any questions.

Capital Wealth Planning and its representatives are in compliance with the current registration requirements imposed upon registered investment advisors by those states in which it maintains clients. Capital Wealth Planning may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. Any illustrations used in this website are hypothetical. The results achieved by individual clients will vary and will depend on a number of factors including the particular underlying investments and their dividend yield, option market liquidity, interest rate levels, implied volatility, and the client’s expressed return and risk parameters at the time the service is initiated and during the term. Past performance is not a guarantee of future returns. Investing in options involves risk that must be considered and reviewed with a professional prior to investing. This website is not intended for the giving of investment advice to any single investor or group of investors.

Covered call option cash flow for any portfolio will vary depending on actual portfolio positions, option premiums received, individual security price volatility, and general stock market volatility. Positions covered by call options may be called away, creating realized capital gains or losses. Cash flow is not guaranteed over any period. More information may be found in CWP’s Form ADV.

RISKS TO CONSIDER:

While CWP takes considerable care in reducing the possibility of having shares called away, there can be no guarantee that the owner of the call option will not exercise the option prior to CWP’s repurchase of the sold option.

The actual income from the strategy will depend, to a large extent, on the target price of the underlying security. Therefore, the amount of incremental cash yield is predominantly determined by investors’ individual risk tolerances and willingness to sell the underlying position.

Covered call writing can provide limited downside protection. It does not, however, eliminate downside risks. Options involve risk and are not suitable for all investors. Prior to opening an account with Capital Wealth Planning, clients are required to understand the risks associated with the purchase or sale of options by receiving the Options Clearing Corporation Publication, “Characteristics and Risks of Standardized Option Trading”. Copies of this document may be obtained by your Financial Advisor or the Option Clearing Corporation. Risks of options are available in the “Characteristics and Risks of Standardized Options,” which is available at https://www.occ.com/about/publications/character-risks.jsp, calling (888) 678-4667 or by calling CWP at (239) 593-2100. Investments or strategies discussed may fluctuate in price or value.

ADDITIONAL DISCLAIMER:

All opinions expressed by Jeff Saut (“Saut”) may have been previously disseminated by Saut on television, radio, Internet or another medium. You should not treat any opinion expressed by Saut as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Saut’s opinions are based upon information he considers reliable, but neither CWP nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Saut, CWP, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided. Saut’s statements and opinions are subject to change without notice. No part of Saut’s compensation from CWP is related to the specific opinions he expresses. CWP’s services should be considered in connection with its written disclosure brochure (i.e., Form ADV Part 2A), a copy of which is available for free by calling (239) 593-2100 or emailing lalbenga@capitalwealthplanning.com.

Past performance is not indicative of future results. Neither Saut nor CWP guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed by Saut. Investors may get back less than invested. Investments or strategies mentioned by Saut may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned by Saut. Before acting on information from Saut, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

© 2021 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating™ for separate accounts, commonly called the star rating, is a measure of a separate account’s risk-adjusted return, relative to other separate accounts in the same Morningstar Category. Separate accounts are rated from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving 1 star. Separate accounts are rated for up to three periods (three, five, and 10 years), and ratings are recalculated each quarter.