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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“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.