Current Economic Events Impacting Income Investors
According to the Federal Reserve's website, "To support continued progress toward maximum employment and price stability,
the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time
after the economic recovery strengthens. In its September 2012 statement, the Committee indicated that it currently
anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015."
In other words, the Federal Reserve is committed to keeping interest rates low for years to come and this directly impacts the
yields on all securities.
The Portfolio Strategy
The Dividend OverDrive Portfolio is an aggressive income-oriented portfolio designed to give
your investments income ballast in times of turbulence. The portfolio has a targeted yield of 10%, but it may be more or less
than that figure depending on market conditions. With a heavy focus on income and dividends, it may be an outstanding
complement to other diversified investments that make up your financial portfolio. The Dividend
OverDrive Portfolio is designed to take advantage of the ultra-low Federal Reserve Rate policy and help individual
investors counter the depressed rates one gets in today’s Treasury, CD, and money market investments. If rates stay low for
years or decades like they have in Japan, you need income to offset flat or turbulent markets. The Dividend OverDrive Portfolio will have a dividend yield approximately 300-400% higher than that of the
S&P 500 but with a market beta approximately equal to that of the S&P 500.
The Dividend OverDrive Portfolio will utilize a mix of dividend-paying stocks and bond funds
to achieve a diversified portfolio of securities suitable for a portion of any investor's portfolio. Among the equity sectors
this portfolio will focus on will be Agency and Hybrid Mortgage REITs, Foreign Blue-Chip stocks, Master Limited Partnerships
(MLPs), ex-Canadian Royalty Trusts (CRTs), Business Development Companies (BDCs), Energy, and Consumer Staples. Bond
products providing income and stability will include traditional Closed-End Funds (CEFs), High Yield Bond Funds, and Floating
Rate Bond Funds.
The creator and proprietor of the Cash Flow Replacement Ratio used in retirement and investment planning, Frank
M. Bifulco is a Chartered Financial Analyst and Certified Financial Planner who has spent over two decades managing high-net
worth individual and institutional accounts. In addition to his various certifications, Mr. Bifulco has passed all exams
pertaining to the Series 7, 63, and 65 exams on his initial attempts. His commentaries and investment analysis have appeared
on CNBC and Bloomberg Television, as well as print journals such as Forbes.com, TheStreet.com, RealMoney.com, and
With a mutual fund manager, your dividends are eaten up by the huge management fess that can easily add up to thousands of
dollars per year, but with the Dividend OverDrive Portfolio low monthly subscription fee of
just $29.99/month, more dividends end up in your pocket!
The analysis and information in this report and on our website is for informational purposes only. No part of the
material presented in this model portfolio and/or report or on our websites is intended as an investment recommendation or
investment advice. Neither the information nor any opinion expressed nor any Model Portfolio constitutes a solicitation to
purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the PUBLISHERS
contributing to Portfolio Channel and may not actually come to pass. The opinions and viewpoints regarding the future of the
markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should
always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any
security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come
to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their
affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided ''as is'' without warranty of any
kind, either expressed or implied. Although the information contained is derived from sources which are believed to be
reliable, they cannot be guaranteed.
The information contained in the Model Portfolios is provided by Frank Bifulco. Employees and affiliates of Frank Bifulco may
at times have positions in the securities referred to and may make purchases or sales of these securities while publications
are in circulation. Frank will indicate whether he has a position in stocks or other securities mentioned in any publication.
The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing
the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices
owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but
also to the 500 companies that have their common stock included in the index.
All returns assume reinvestment of dividends unless otherwise indicated. Investments in equities carry an inherent element of
risk including the potential for significant loss of principal. Past performance is not an indication of future results.