Kevin Simpson is navigating this inflationary environment by targeting companies that use free cash flow to raise dividends. The founder and chief investment officer at Capital Wealth Management manages the Amplify CWP Enhanced Dividend Income ETF , which has a five-star rating from Morningstar. The large cap dividend growth portfolio is down 6.9% this year, handily surpassing the S & P 500,and places it in the top quartile of performance among its peers.
includes roughly 25 to 30 large-cap, blue chip stocks that have a history of raising dividends and, more importantly, increasing earnings to support those dividends, according to the portfolio manager. Simpson also protects the portfolio by writing covered calls to hedge against market volatility.
outperform. The exchange traded fund has a 6% allocation to Chevron alone, making it the top holding, according to Morningstar. Chevron is up more than 47% in 2022. It has a 3.3% dividend yield. "When you invest in the stock market the way we do, you don't have to call bottoms," Simpson said. "We want to practice the philosophy that we want to lose as little as possible."