Narstar
Income Portfolio
Dividend-paying companies, selected for cash flow.
The Income Portfolio holds dividend-paying stocks and preferred shares, selected for cash flow. We handle the trading while your account stays in your own name at Interactive Brokers, and the annual fee is 0.60%. Keep in mind that dividends can be cut and you can lose principal.
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
New clients may open one Starter Account at $100 and have six months to reach $3,000. Liquidation is a taxable event. Details.
Who This Is For
Not for everyone. Here's who it tends to fit.
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You want your portfolio to generate cash
Whether you reinvest it or spend it, you want dividends coming in on a regular basis. We select companies for their ability to pay. Worth knowing: dividends can be cut at any time, and the stock price can still drop regardless of what the dividend does.
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You're retired or close to it
You've built the savings. Now you want them in something that pays out rather than just compounds. This portfolio can still lose value, so it's not a substitute for a bond allocation if you genuinely can't afford drawdowns.
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You want individual companies, not a fund
You'd rather own twenty researched businesses than get bundled into an ETF with hundreds of names you'd never pick yourself. That comes with more stock-specific risk. Equity income is not fixed income, and dividends are never guaranteed.
You don't need income now and won't need this money for at least three 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.
Comparing options? See how Narstar compares to robo-advisors and why we use individual stocks instead of ETFs.
What to Expect
This is not a bond fund, so 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.
These aren't edge cases. They're the ordinary conditions of holding dividend stocks. If you want cash flow and can stomach the price swings and occasional cuts that come with it, this portfolio may be worth a conversation.
What you pay
0.60% per year, calculated on the average daily net liquidation value of your account and billed at the end of each quarter. Our advisory fee is the only fee we charge. Interactive Brokers may charge its own separate fees and costs, depending on your account and holdings.
- 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
Short questionnaire, then we take it from there.
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, rebalancing. All handled. You can leave any time with written notice and 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 dividend cut means the company's financial picture changed. We act on that.
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This is stocks, not bonds. Equity income carries more risk than fixed income. Your principal can fall sharply. 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