Equity Income Strategy
Equity Income Strategy Objective
The Payden Equity Income Strategy is seeks to provide steady income, long-term capital appreciation, and lower volatility relative to broad equity markets. The strategy focuses on high-quality, dividend-paying companies with durable cash flows, strong balance sheets, and disciplined capital allocation. With a bottom-up process grounded in fundamental research and a flexible allocation across equities, preferreds, REITs, and MLPs, the portfolio aims to provide resilient equity exposure across market cycles.
Built for investors seeking income without sacrificing total return potential, the strategy emphasizes downside protection, consistent dividend growth, and a diversified sector profile, avoiding overexposure to traditional dividend-heavy industries.
Equity strategy focused on
consistent income, capital
appreciation, and risk control
Invests in high-quality large-cap
stocks with growing dividend
potential
Actively managed across common
stocks, preferreds, REITs, and
MLPs
Where Philosophy Meets Execution
Payden’s equity income approach takes cues from the bond world: focus on income, limit volatility, and protect capital. That begins with a universe of large-cap companies screened for durable cash flow, dividend consistency, and financial strength. We look for businesses that can pay and grow dividends through different market conditions, not just in good years.
Our research process blends traditional equity analysis with credit-like disciplines. We assess dividend coverage, funding costs, leverage, and access to capital markets, alongside valuation, earnings growth, and management behavior. This dual-lens approach helps us avoid common equity income traps and identify companies that can actually deliver on their payout promises.
Portfolios are built with purpose: diversified across sectors, with stock-level positions capped at 3% at purchase, and allocations to preferreds, REITs, and MLPs where they contribute to yield and stability. We don’t chase headline yields. Instead, we construct a durable stream of income, supported by risk-aware beta, earnings visibility, and high-quality holdings.
The strategy is continuously monitored and rebalanced. We assess dividend risk, conduct correlation analysis, and re-evaluate holdings based on fundamentals and relative positioning. The result is a disciplined portfolio built to deliver through changing macro conditions, steady income with equity upside and measured risk.
Related Insights
Curated perspectives selected to inform, prompt reflection, and broaden thinking.
Explore more of our strategies
Fixed Income Strategies
Fixed income strategies focused on global bond markets, supported by research-driven analysis and active risk management.
Unconstrained Strategies
Designed to balance capital preservation and growth through the flexibility to invest across global credit markets.
Discover what’s possible
Unlock new opportunities with bold ideas, thoughtful guidance, and a vision tailored to you. One of our advisors will be in touch to discuss the way forward.
Investment in foreign securities entails certain risks from investing in domestic securities, including changes in exchange rates, political changes, differences in reporting standards, and, for emerging market securities, higher volatility. Investing in high-yield securities entails certain risks from investing in investment grade securities, including higher volatility, greater credit risk, and the issues’ more speculative nature. The value of fixed income portfolios will rise and fall due to changes in interest rates and other economic factors. Investment portfolios could lose principal.