Portfolio Summary

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The Dividend Angel portfolio as of March 31, 2026 is built around a balance of income, quality, and cyclical opportunity. The portfolio is broadly diversified, with its largest sector exposures in Basic Materials (13%) and Financial Services (13%), followed by Industrials (30% combined exposure across multiple sub-industries) and Consumer sectors (18% combined). Utilities (10%) and Real Estate (8%) add a defensive income layer, while smaller allocations to Energy, Healthcare, and Technology round out the mix. At the industry level, the portfolio leans into Specialty Industrial Machinery, Utilities, Specialty Chemicals, and Logistics, reflecting a bias toward real-economy businesses with pricing power and tangible demand drivers. 

 From an investment style perspective, the portfolio is tilted toward the mid-cap universe (over 70% combined Mid Blend, Mid Value, and Mid Growth), which often represents a “sweet spot” between growth and stability. There is also meaningful exposure to cyclical stocks (42.5%), complemented by slow growth (20%) and classic growth (12.5%) names. This creates a portfolio that can participate in economic upside while still maintaining a foundation of steady, income-generating businesses. Additionally, hard asset exposure (10%)—including energy, real estate, and infrastructure—adds an inflation-sensitive component. 

 A defining feature of the strategy is its focus on quality income through the “Angel Level” framework, where lower scores represent stronger dividend profiles. Notably, 85% of the portfolio is allocated to Angel Level 1 and 2 companies, signaling a strong emphasis on dividend reliability and sustainability, while still allowing selective exposure to higher-yield or improving names. The portfolio’s average dividend yield of 2.23% is supported by solid underlying profitability, with average earnings per share of $8.11, reinforcing the ability of these companies to sustain and grow their payouts over time. 

 Performance and risk metrics reflect a balanced approach. The portfolio has generated a 4.17% return year-to-date and 9.65% over the past year, with a beta of 0.46, indicating lower sensitivity to broader market swings. While volatility (23.68% standard deviation) reflects the inclusion of cyclical industries, the overall structure aims to smooth returns through diversification and income. Taken together, the Dividend Angel portfolio represents a disciplined blend of income, quality, and cyclical upside, designed to perform across different market environments while prioritizing long-term compounding.