Equity Income Strategy
Equity Income Strategy
The Payden Equity Income Strategy aims to deliver steady income and long-term capital appreciation with lower volatility than the broader equity market. The strategy employs a bottom-up investment process grounded in fundamental research to build a portfolio of high-quality, income-generating companies with durable cash flows, strong balance sheets, and disciplined capital allocation. To promote diversification and reduce concentration risk, the portfolio includes common stocks, preferred securities, REITs, and MLPs, seeking to provide resilient equity exposure across market cycles.
The strategy can be tailored to accommodate varying risk tolerances and return objectives, meeting investors’ specific goals.
Actively managed equity strategy focused on reliable income, steady income growth and capital appreciation with an emphasis on lower volatility
Emphasize high-quality large-cap companies with durable and growing cash flows, maintained within a well-diversified portfolio
Custom-built portfolios tailored to meet specific client risk and return objectives
Where Philosophy Meets Practice
Payden’s equity income approach takes cues from the bond world: focus on income, limit volatility, and protect capital. That begins with a universe of large-cap companies screened for durable cash flow, dividend consistency, and financial strength. We look for businesses that can pay and grow dividends through different market conditions, not just in good years.
Our research process blends traditional equity analysis with credit-like disciplines. We assess dividend coverage, funding costs, leverage, and access to capital markets, alongside valuation, earnings growth, and management behavior. This dual-lens approach helps us avoid common equity income traps and identify companies that can actually deliver on their payout promises.
Portfolios are built with purpose: diversified across sectors, with stock-level positions capped at 3% at purchase, and allocations to preferreds, REITs, and MLPs where they contribute to yield and stability. We don’t chase headline yields. Instead, we seek to construct a durable stream of income, supported by risk-aware beta, earnings visibility, and high-quality holdings.
The strategy assesses dividend risk, conducts correlation analysis, and re-evaluates holdings based on fundamentals and relative positioning. The result is a disciplined portfolio built to deliver steady income with equity upside and measured risk through changing macro conditions.
Explore more of our strategies
Fixed Income Strategies
Fixed income strategies focused on global bond markets, supported by research-driven analysis and active risk management.
Unconstrained Strategies
Designed to balance capital preservation and growth through the flexibility to invest across global credit markets.
Discover what’s possible
See how our investment approach supports your objectives across market cycles.