Net Payout Yields

  • Additional attributes Large cap
  • Strategy Stocks
Net Payout Yields is designed to be a conservative strategy. It offers a diversified selection of large cap stocks that offer dividends and/or are buying back stock.

The net payout yield goal for the strategy is 8%, defined by the amount a company spends on stock buybacks and dividends as a percentage of its stock price (adjusted for the amount a company receives for issuing new stock). The dividend yield objective for the strategy is 2 to 3%. Of course, stock dividends reflect past performance and there is no guarantee they will continue to be paid.
Mark mainly invests in stocks in the S&P 500 with market caps above $10 billion. He also invests 10 to 20% in large caps to increase the return potential while maintaining volatility generally in line with the S&P 500.
Mark screens companies for high net payout yields, then selects the ones that he believes are of high quality; he will not automatically select just the highest-yielding stocks. Mark conducts additional fundamental research in an effort to avoid companies that he believes may become distressed.
The strategy typically holds around 15-20 positions. Some stocks will be given smaller positions if Mark believes they are too risky to warrant a larger one. He typically replaces stocks when their yields decline with higher-yielding stocks.
Mark will sell stocks when their stock yields drop below his target. That may happen due to stock price increases that drive down yields, dividend cuts, or changes to stock repurchase plans.
A few exchange-traded funds (ETFs) may be held in an effort to improve diversification and to reduce risk.



Month to date



Quarter to date



Year to date


Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 13.4%

    Best quarter

  • -10.8%

    Worst quarter

    • 1% fee
    • $20,000 min

Performance detail

Performance Portfolio inception Nov 02, 2010

as of Dec 02, 2016 Manager (net of fees ) S&P 500
Month-to-date 0.1% -0.3%
Quarter-to-date 6.9% 1.1%
Last 365 Days 13.1% 6.9%
Since inception (Annualized) 14.2% 10.5%
2016 (YTD) 16.7% 7.2%
2015 -6.1% -0.7%
2014 14.7% 11.4%
2013 37.1% 29.6%
2012 20.3% 13.4%
2011 5.5% -0.0%

Risk metrics Last 365 days

as of Dec 02, 2016 Manager (net of fees ) S&P 500
Volatility 16.6% 13.8%
Sharpe Ratio 0.76 0.47
Sortino Ratio 1.08 0.63
Maximum Drawdown -15.0% -12.6%
Value-at-risk (95%, 1 week) -3.8% -3.2%
vs. S&P 500
Information Ratio 0.84
Alpha 5.5%
Beta 1.07
R-Squared 0.81


  • Consumer, Cyclical
  • Technology
  • Communications
  • Financial
  • Consumer, Non-cyclical

Top 5 securities

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Latest transactions Average trades per month 1.5

Executed Symbol Security Type Price
11/03/16 CTL CenturyLink Inc Buy $22.99
10/20/16 HAL Halliburton Co Sell $49.13
06/16/16 UAL United Continental Holdings Inc Buy $42.02
06/10/16 GILD Gilead Sciences Inc Buy $84.29
06/03/16 AAL American Airlines Group Inc Buy $30.92
05/11/16 NOC Northrop Grumman Corp Sell $215.09
01/07/16 QCOM QUALCOMM Inc Buy $46.36
01/07/16 LOW Lowe's Cos Inc Sell $72.45
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Important Information

  1. Past performance is no guarantee of future results.
  2. Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. Average client returns are calculated by Covestor and are composed of the asset-weighted daily average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, and earnings distributions, and reflect the deduction of Covestor advisory fees, brokerage and other commissions and expenses actually paid by clients.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. More information here.
  7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
  8. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
  9. Not all transactions listed will appear in accounts due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  10. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns exclude or are net of management fees, transaction costs and expenses.