Narstar
Income Portfolio
Dividend-paying companies, selected for cash flow.
The Income Portfolio holds dividend-paying stocks and preferred shares, selected for cash flow. Your account stays in your name at Interactive Brokers. We handle the trading. 0.60% annual fee. But dividends can be cut and principal can be lost.
Portfolio at a glance
Dividend-paying stocks and preferred shares selected for regular cash flow.
- Suited for investors who want income from their portfolio
- Holds individual stocks and preferred shares, not funds
- Dividends can be cut or suspended at any time
- Lower volatility than Growth or Speculative, but principal can still be lost
Who This Is For
A specific strategy for a specific investor. Not a catch-all.
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You want cash flow, not just growth
You want your investments to generate cash on a regular basis, whether you reinvest it or use it for something else. We select companies for their ability to pay dividends. But those dividends can be cut or suspended at any time, and stock prices can still fall.
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You're retired or getting close
You've spent years building savings. Now you want those savings in dividend-paying stocks selected for cash flow. Not a high-risk bet. Something more conservative than pure growth. And you accept this portfolio can still lose value.
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You'd rather own companies than funds
You want to hold individual businesses, not be bundled into a fund with hundreds of names you'd never pick. Equity income carries more risk than bonds, and dividends can be cut. But owning real businesses is what you want.
You don't need income now and have a long horizon of 15 or 20 years. The Growth or Speculative portfolio is probably a better match for that.
Considering an old 401(k) for income investing? See how a 401(k) rollover works and the retirement accounts Narstar manages.
What to Expect
This isn't a bond fund. Read this before you commit.
- Dividend cuts Companies can cut or suspend dividends at any time. When that happens, the stock usually drops.
- Interest rate risk Income-oriented stocks can sell off when interest rates rise, as investors move toward bonds for safer yield.
- Sector concentration The portfolio leans into utilities, financials, consumer staples, healthcare, and energy. A sector downturn hits harder.
- Market risk Dividend-paying stocks can lose significant value. A high dividend does not protect against price declines.
- Loss of principal All investing involves risk, including the possible loss of principal. Distributions are not guaranteed.
Understanding these risks is part of deciding whether this portfolio fits your situation. If you can accept them and want income from your investments, the trade-off may make sense for you. Only you can make that call.
One Fee. No Surprises.
0.60% per year. Fees are calculated on the average daily net liquidation value of your account and billed at the end of each quarter. Nothing else.
- Our trading commissions $0
- Referral fees $0
- Product sales $0
- Hidden fees $0
Fee calculated on average daily net liquidation value. Your brokerage (Interactive Brokers) may charge its own separate fees.
Not the right fit? See the Growth or Speculative portfolio.
How to Start
Three steps. Here's how it works.
Tell us about your goals
Answer a few questions about your timeline and what you're saving for. Takes about 5 minutes.
We match you to a portfolio
Based on your answers, we recommend the model portfolio that fits your situation. If Income isn't the right match, we'll tell you.
We manage it from there
Trading, monitoring, ongoing portfolio management. We handle the day-to-day work. NarStar doesn't charge exit fees.
Terminable on written notice, no termination penalty.
Questions
Things people ask about the Income portfolio.
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Companies can cut dividends at any time. When that happens, the stock usually drops. We monitor holdings and sell when the reason we bought breaks down. A cut is a signal, not just a disappointment. It means the company's financial picture changed, and we act on that.
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This is stocks, not bonds. Equity income carries more risk than fixed income. Your principal can decline significantly. You take on more price risk than a bond investor. That's the nature of owning equity stakes instead of lending money. If bonds are a better match for what you can handle losing, this portfolio isn't the right fit.
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Dividends are deposited into your IBKR account. Whether reinvested or kept as cash depends on your preference. We'll ask about this during setup. There's no single right answer. Some clients want to accumulate more shares. Others want the cash available for something else.
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ETFs hold hundreds of companies, including ones we would never choose. We build a focused portfolio of researched companies. That concentration means more risk from individual picks, but every position is deliberate. You're not paying an advisory fee to own an index in disguise.
Interested in the Income Portfolio?
Ask about dividend strategy, fees, or how to get started. We reply within two business days.
- Reply within two business days.
- [email protected]
- (801) 251-6844
- Sandy, Utah