Income Booster
A high-income equity strategy targeting a 6% dividend income from a carefully selected group of resilient businesses in developed markets.
- 1 month
- -2.6%
- 1 year
- +9.8%
- All-time
- +14.6%
Trailing yield · +5.4%
Follow Income Booster with full transparency into every holding.
The Thesis
It’s easy to build a portfolio that screens for high yield. It’s much harder to build one that avoids the traps that come with it. High dividend yields are often a sign that something’s wrong: an impending dividend cut, an over-leveraged balance sheet, or a broken business model. That’s why this strategy goes beyond the numbers. Income Booster was created to access high equity income without falling into those common traps. With interest rates fluctuating and many traditional income strategies diluted by passive vehicles or constrained by outdated structures, this strategy offers something different — targeted, transparent, and grounded in deep research.
The Strategy
This portfolio consists of companies with a shared focus on distributing meaningful levels of cash to shareholders. Most of the holdings are UK-listed, where dividend culture remains strong, but the strategy also includes high-quality names from Germany and the US. Each company has been assessed not just on its current payout, but on the long-term sustainability of that payout — including capital allocation strategy, dividend policy, and the potential trade-offs with buybacks or M&A.
The Process
Selecting stocks for a high-income strategy isn’t just about yield — it’s about understanding how that yield is funded. This strategy uses a bottom-up analytical process that examines: - The financial structure of the business — particularly debt levels and interest cover - The consistency and predictability of cash flows - The company’s commitment to dividends as part of its broader capital allocation approach Special attention is given to avoiding businesses where the dividend may be politically or strategically vulnerable, or where short-term yield masks longer-term fragility.
Strategy performance
Since inception (Mar 2025)
Past performance is not a reliable indicator of future results. The value of investments and any income from them can go down as well as up. Returns shown are illustrative and based on historical data.
Spotlight
Why we picked NatWest
NatWest is in many ways similar to Barclays but more domestically focused. It offers retail banking services to 19 million customers in the UK, is the UK’s largest commercial and institutional bank offering services to a range of UK corporates from start-ups to multinational corporates, and a range of private banking and wealth management services to HNW individuals. The biggest difference between the two banks is that NatWest doesn’t have a large and lower-returning investment banking business and, consequently, is a more profitable bank with a higher return on tangible equity. It also, rightly, has a slightly higher rating. Nevertheless, its performance and recent history are very similar to Barclays, albeit that NatWest’s financial crisis was arguably worse and ultimately required a state bail-out to prevent its collapse. NatWest, too, has now transformed into a much lower-risk, well-capitalised, and high-return domestic banking business. In 2024, the bank delivered a 17.5% return on tangible equity and had a Tier 1 capital ratio of 13.6%. Over the next two years, the bank is forecast to sustain a high ROE, deliver good profit and earnings growth and continue to pay a substantial dividend alongside ongoing share buybacks. The bank is listed in London, has a market capitalisation of just under £36bn, trades on a calendar 2025 PE of 7.8x, and a dividend yield of just over 6%. The bank trades on its 2025 book value at a 10% discount to 2026 TNAV per share.
The investment case
NatWest is a completely transformed business with a low-risk balance sheet, surplus capital, a high ROE, and modest asset growth. Gone are the days of reckless loan growth, wafer-thin capital ratios and excessive leverage. The bank’s share price has performed well over the last twelve months. However, its valuation, in my judgement, is still way too low and still reflects the bank’s troubled past rather than its more sober, higher return and lower risk future.
Strategy DNA
Composition at a glance
Holdings
The Companies
Full holdings are for members only
Sign up to see every position and weight in real time.