Income Producing

Using our time-tested ability to identify undervalued assets, we created a strategy designed to accommodate investors who have a lower risk tolerance but still desire some exposure to the potential growth of the stock market. This investment approach primarily focuses on attaining an income stream through stable dividend-paying companies and quality corporate bonds. We will also purchase other income-producing securities such as preferred shares or treasury bonds and notes. The equity-to-bond mix will range between 40-60 percent depending on the investment environment. Market interest rates and other economic forces will determine the optimal equity-to-debt mix. This is a fully diversified program designed to reduce risk from any one stock, bond or sector. As with all of our programs one or more of KPP Financial principals invest their own money alongside their clients, which we call “Parallel Investing.”

Stock investment returns can come from two places, price appreciation, and dividend income. While most investors chase after appreciation, many are unaware that income accounts for roughly half of the returns from stock investing. We also know that most options expire worthless which gives the advantage to whoever is getting income by writing them.  This is why we developed this strategy that only holds dividend-paying stocks and adds an extra boost of income by writing covered calls on those positions. By doing this we add consistent income from dividends and option premiums which creates a moderately aggressive strategy. As with all of our programs, one or more of KPP Financial principals invest their own money alongside their clients, which we call “Parallel Investing".