SEEKING A HIGH RATE OF CURRENT INCOME WITH GROWTH AS A SECONDARY OBJECTIVE
Since 1980, 75% of the returns of the S&P 500 came from dividends.
In this low-interest rate environment, the dividend yields on common stock can be higher bond yields.
Dividends can help in reducing overall portfolio risk and volatility. The dividends taken from stocks may help to assuage any losses incurred during times when stock prices fall. In addition, when a company decides to share its profits with shareholders, it potentially increases demand for that stock and drives up the value.
Potential Benefits of the AmericaFirst Income Fund
A Record of Consistent Dividends: The AmericaFirst Income Fund has paid uninterrupted dividends since its inception.
Broad Diversification: The AmericaFirst Income Fund is a broad diversifier across various asset classes including stocks, bonds and preferred securities.
Rules-Based & Unemotional Investment Process: Emotional decision making often leads to poor financial decisions. Rules-based portfolio management, which is based on empirical evidence and eliminates negative emotions in decision-making, can be more effective than traditional and more subjective approaches.
A Common-Sense & Multi-Factor Approach
The utilization of individual factors can be cyclical and may require precise market timing to maximize returns. In its research, AmericaFirst has discovered that a multi-factor approach that includes Quality, Value & Momentum together could result in an improved investment experience for investors through increased potential reward while reducing risk or other negative consequences such as volatility when compared with single factor strategies alone.
AmericaFirst runs a multifaceted analysis to choose which stocks may have the highest return potential for the Income Fund.
The 75 S&P 500 stocks with the highest current yield are ranked, considering their earnings quality as well as capital efficiency, price momentum and valuation before selecting which ones have the highest ranking. In addition, we select stocks on an equal-weight basis to provide better diversification by avoiding concentration of portfolio in few big stocks. This means the risk is spread across a wider range of companies and your investment may be more resilient to changes in one or two underlying securities.
The Fund will also invest in Government and Corporate bonds in an attempt to smooth potential volatility.