Narstar
Income Portfolio
Dividend-paying companies, selected for cash flow.
The Income Portfolio holds dividend-paying stocks, selected for cash flow. We handle the trading while your account stays in your own name at Interactive Brokers, and the annual fee is 0.60%. Keep in mind that dividends can be cut and you can lose principal.
Portfolio at a glance
Dividend-paying stocks selected for income.
- Suited for investors who want income from their portfolio
- Holds individual stocks and cash equivalents, not funds
- Dividends can be cut or suspended at any time
- Lower volatility than Growth or Speculative, but principal can still be lost
A new client may open one $100 Starter Account and must reach $3,000 by the last day of the sixth calendar month. SIMPLE IRA participant accounts have no minimum and are not eligible for the Starter Account. Liquidation is a taxable event. Details.
Who this is for
Not for everyone. Here's who it tends to fit.
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You want your portfolio to generate cash
Whether you reinvest it or spend it, you want dividends coming in on a regular basis. We look for companies with sustainable payouts: balance sheets and cash flow that cover the dividend without straining the business. Sustainability is a judgment we make, not a promise the company gives. Dividends can be cut or suspended at any time, and the stock price can still drop regardless of what the dividend does.
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You're retired or close to it
You've built the savings. Now you want them in something that pays out rather than just compounds. This portfolio can still lose value, so it's not a substitute for a bond allocation if you genuinely can't afford drawdowns.
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You want individual companies, not a fund
You'd rather own a focused set of researched businesses than get bundled into an ETF with hundreds of names you'd never pick yourself. That comes with more stock-specific risk. Equity income is not fixed income, and dividends are never guaranteed.
You don't need income now and won't need this money for at least three years. The Growth or Speculative portfolio is probably a better match for that.
What to expect
This is not a bond fund, so read this before you commit.
- Dividend cuts Companies can cut or suspend dividends at any time. When that happens, the stock usually drops.
- Interest rate risk Income-oriented stocks can sell off when interest rates rise, as investors move toward bonds for safer yield.
- Sector concentration The portfolio leans into utilities, financials, consumer staples, healthcare, and energy. A sector downturn hits harder.
- Market risk Dividend-paying stocks can lose significant value. A high dividend does not protect against price declines.
- Loss of principal All investing involves risk, including the possible loss of principal. Distributions are not guaranteed.
What you pay
Use the calculator below to see your annual advisory fee at any account value. Narstar charges no trading commissions, referral fees, or product sales.
Calculated on your average daily net liquidation value and billed quarterly in arrears. Interactive Brokers may charge separate fees.
Have an IRA?
Traditional, Roth, Rollover, SEP, and SIMPLE IRAs are billed at the uniform 1.00% rate, rather than the portfolio rates, no matter which portfolios the account holds. A single IRA can hold more than one model portfolio at that same rate.
Have less than $3,000?
A new client may open one $100 Starter Account in a single model portfolio. It must reach $3,000 by the last day of the sixth calendar month after opening. SIMPLE IRA participant accounts have a $0 minimum and are not eligible for the Starter Account. See full details.
How to start
Short questionnaire, then we take it from there.
Tell us about your goals
Answer a few questions about your timeline and what you're saving for. Takes about 5 minutes.
We match you to a portfolio
Based on your answers, we recommend the model portfolio that fits your situation. If Income isn't the right match, we'll tell you.
We manage it from there
Trading, monitoring, rebalancing. All handled. You can leave any time with written notice and no termination penalty.
Questions
Things people ask about the Income portfolio.
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Companies can cut dividends at any time. When that happens, the stock usually drops. We monitor holdings and sell when the reason we bought breaks down. A dividend cut means the company's financial picture changed. We act on that.
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This is stocks, not bonds. Equity income carries more risk than fixed income. Your principal can fall sharply. You take on more price risk than a bond investor. That's the nature of owning equity stakes instead of lending money. If bonds are a better match for what you can handle losing, this portfolio isn't the right fit.
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Dividends paid by stocks in your account are deposited directly into your IBKR account by the paying company. We don't automatically reinvest them. The cash sits until the next portfolio review, at which point it goes into positions below their target size, or stays as cash if nothing fits. Dividend amounts are set by each company and can be reduced or eliminated at any time.
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ETFs hold hundreds of companies, including ones we would never choose. We build a focused portfolio of researched companies. That concentration means more risk from individual picks, but every position is deliberate. You're not paying an advisory fee to own an index in disguise.
Interested in the Income Portfolio?
Ask about dividend strategy, fees, or how to get started.
- pavel@narstar.capital
- (801) 251‑6844
- Sandy, Utah