| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Matrix Dividend Income posted a high single-digit gain in Q2 2026, performing in line with the S&P 500 for the first half of the year. The portfolio's core thesis centers on dividend-paying large-cap stocks with strong fundamentals trading at attractive valuations. The portfolio's 2.69% dividend yield significantly exceeds the S&P 500's 1.08% yield, with fourteen companies raising dividends by an average of 6.8% in the first half. The manager added positions in Abbott Laboratories and McDonald's, both trading near 52-week lows at attractive valuations with 2.8% dividend yields. Performance was led by Financials, Technology, and Consumer Discretionary holdings, while Communication Services and Consumer Staples detracted. The manager trimmed oversized positions after strong price appreciation and opportunistically added to undervalued names in Healthcare and Consumer Staples. Looking forward, the manager expects market broadening beyond concentrated sectors to benefit their value-oriented approach. Key risks include elevated market valuations at 21.8x earnings for the S&P 500, potential labor market softening from AI implementation, and persistent inflation above 4%. The portfolio trades at 16.5x estimated 2026 earnings, a meaningful discount to the market.
Matrix Dividend Income pursues a dividend-focused value strategy targeting large-cap stocks with strong fundamentals, recurring revenues, and attractive valuations that trade at discounts to the broader market while offering superior dividend yields and growth.
The manager remains optimistic about the economy and cautiously optimistic about the stock market for the balance of 2026. Strong corporate earnings, the anticipated end of the Iran war, and AI infrastructure spending are positive factors. However, the manager has modest expectations for the overall stock market given elevated valuations and the low dividend yield relative to Treasury yields. The manager has a more positive view for their portfolios specifically, anticipating continued market broadening beyond concentrated sectors will benefit their value-oriented holdings. They expect higher-than-usual volatility and leadership rotations in the second half of the year.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | ABT, ACN, ADP, BK, CMCSA, HD, MCD, MDT, MS, NEE, PEP, PG, QCOM, STZ, TGT, TSN, TXN | dividends, Fed policy, financials, healthcare, inflation, large cap, technology, value |
ABT MCD |
Matrix Dividend Income delivered high single-digit gains in Q2 2026 through disciplined value investing in dividend-paying large caps. The portfolio's 2.69% yield and 16.5x P/E multiple offer compelling value versus the S&P 500's 1.08% yield and 21.8x multiple. The manager added Abbott Laboratories and McDonald's at attractive entry points near 52-week lows while trimming winners. Fourteen holdings raised dividends 6.8% year-to-date, supporting the income and growth mandate. |
| May 13 2026 | 2026 Q1 | AAPL, ACN, ADP, AMZN, CMCSA, FDX, GNRC, INTU, MSFT, NKE, PEP, PG, QCOM, TSN | AI, dividends, financials, Geopolitical, oil, technology, value |
INTU NKE ADP PG |
Matrix opportunistically added positions during Q1 Iran war volatility, expecting quick conflict resolution and market recovery. After decade of Growth outperformance, firm positioned for Value rotation with dividend-focused portfolio yielding 2.83% and trading at attractive 16.0x forward earnings. Maintains cautiously optimistic 2026 outlook targeting high-single-digit returns despite near-term geopolitical uncertainty. |
| Jan 30 2026 | 2025 Q4 | ACN, LMT, META, TXN | AI, consumer, dividends, Fed, financials, rates, technology, value |
TXN FISV |
Matrix delivered strong 2025 returns and expects continued Value outperformance in 2026 as Fed cuts drive rotation from expensive Growth stocks to attractively valued dividend payers. While cautiously optimistic on high single-digit market returns, they cite risks from high valuations, weakening employment, and unbalanced economic growth dependent on AI investment and wealthy consumer spending. |
| Nov 16 2025 | 2025 Q3 | ACN, AMAT, BA, BK, CSCO, FI, GD, LHX, LMT, NESN.SW, NSC, SBUX, STZ, TEL, TGT, TSN, UNP | defense, dividends, financials, healthcare, technology, value |
ACN STZ LMT |
Matrix delivered strong Q3 performance with lower volatility than markets. With S&P 500 at elevated 22.8x forward earnings, the manager expects moderated gains and sector rotation to defensive areas as economic slowdown emerges. Portfolio emphasizes high-quality dividend growers positioned to benefit from rate cuts while maintaining disciplined value approach through continued market volatility. |
| Aug 7 2025 | 2025 Q2 | AEP, AMAT, BK, CMCSA, CSCO, DG, FDX, FI, GNRC, LOW, MS, PEP, PNC, PYPL, QCOM, SBUX, TEL, TGT, TMO, UNH | dividends, financials, tariffs, technology, value, volatility |
AMAT FI |
Matrix Asset Advisors navigated Q2 volatility effectively through active management, deploying cash during the April tariff-driven selloff to purchase quality names like Applied Materials while exiting positions like UnitedHealth Group ahead of significant declines. Despite expecting continued volatility from policy uncertainty, the firm maintains constructive outlook for high single digit returns while reducing equity exposure given elevated valuations. |
| Apr 8 2025 | 2025 Q1 | ABBV, BDX, BK, CSCO, DG, FI, GNRC, GS, HUM, JPM, LOW, MDT, META, PEP, QCOM, RTX, TGT, TMO, TSN, USB | dividends, financials, healthcare, tariffs, technology, value, volatility |
GNRC PEP TGT |
Matrix Asset Advisors sees the tariff-driven market selloff as creating exceptional buying opportunities in high-quality dividend stocks. Despite Q1 volatility from policy uncertainty, their portfolios outperformed with strong dividend growth. Higher cash positions enable opportunistic deployment during weakness. They expect continued near-term volatility but meaningful recovery by year-end as markets force policy corrections. |
| Jan 8 2025 | 2024 Q4 | AMGN, BDX, BK, CSCO, DG, GILD, HUM, MS, PEP, PNC, UNH | dividends, financials, growth, healthcare, rates, technology, value |
AMGN DG PEP |
Matrix Asset Advisors expects Value stocks to outperform Growth in 2025 after a decade of underperformance, positioning portfolios in attractively valued Financials, Healthcare, and Consumer Staples. Despite cautious optimism on markets given elevated valuations, they anticipate positive returns driven by earnings growth and market rotation dynamics favoring their Value-oriented investment approach. |
| Sep 30 2024 | 2024 Q3 | ABBV, BDX, CMCSA, CSCO, DUK, GS, JPM, MDT, PYPL, QCOM, SBUX, UNP | dividends, financials, healthcare, large cap, rates, value |
MDT BDX NESN.SW |
Matrix Asset Advisors delivered strong Q3 performance through value-focused strategies emphasizing dividend-paying companies at attractive valuations. The Fed's rate-cutting cycle should benefit their financial and interest-sensitive holdings. Despite elevated market valuations and election uncertainty, the firm remains cautiously optimistic, selectively taking profits while maintaining overweight equity exposure and building cash for future deployment opportunities. |
| Jul 31 2024 | 2024 Q2 | CMCSA, CSCO, CVS, GD, GILD, HD, LOW, MDT, PEP, QCOM, SBUX, TSN | AI, dividends, financials, healthcare, large cap, rates, technology, value |
LOW MDT |
Matrix Asset Advisors expects the AI mega tech rally to broaden to undervalued sectors, benefiting their Large Cap Value and Dividend Income strategies. With portfolios trading at significant discounts to market multiples and Fed rate cuts expected, they see opportunities in Financials, Healthcare, and dividend-paying companies with strong fundamentals and attractive valuations. |
| Apr 15 2024 | 2024 Q1 | ABBV, AEP, AMGN, APD, DUK, EBAY, FDX, JPM, NEE, PARA, PYPL, QCOM, RTX, SBUX, TSN, TXN, UNH | dividends, financials, large cap, Rate Cuts, technology, Utilities, value |
AEP TSN |
Matrix delivered solid Q1 returns while positioning for a choppier market environment ahead. The firm significantly increased utility exposure to capitalize on AI-driven power demand growth and added defensive dividend-paying stocks. With valuations fully priced, Matrix expects slower gains and is trimming winners while adding to undervalued quality names positioned for expected Fed rate cuts. |
| Dec 31 2023 | 2023 Q4 | AEP, BK, CMCSA, GILD, JPM, MDT, MSFT, PNC, UNP, USB | dividends, financials, income, large cap, value | - | Matrix Dividend Income rebounded strongly in Q4 with low double-digit returns, led by Financials recovery. The concentrated 25-stock portfolio focuses on high-quality dividend growers with 3.10% yield and 6.43% annual dividend growth. Despite lagging in 2023, strong 2022 defense resulted in better two-year performance with lower volatility than Russell 1000 Value. |
| Sep 30 2023 | 2023 Q3 | AAPL, AEP, AMGN, AMZN, BKNG, CMCSA, FDX, FI, GOOGL, JPM, LHX, META, MSFT, NEE, PFE, RTX, TXN, UL, UNH, ZBH | dividends, financials, large cap, rates, Utilities, value |
HRTX NEE |
Matrix Asset Advisors runs value-oriented strategies focused on dividend-paying companies trading at attractive valuations. Despite Q3 market weakness from rising rates, the firm maintains conviction that Fed policy will pivot in 2024, driving outperformance for undervalued quality companies. Portfolio yields 3.35% with embedded appreciation potential of 49.9%, positioning for strong returns as economic conditions normalize. |
| Aug 8 2023 | 2023 Q2 | AAPL, AMZN, CSCO, GD, GOOGL, KO, LHX, META, MSFT, PFE, PYPL, QCOM, SBUX, UNH | AI, dividends, financials, healthcare, large cap, rates, technology, value |
AAPL|MSFT|NFLX|NVDA|UNH PFE |
Matrix expects the 2023 market rally to broaden beyond concentrated technology winners, creating opportunities in undervalued Financials, Healthcare, and Industrials. Elevated insider buying across 21% of holdings supports their bullish outlook. While dividend strategies have lagged AI-driven growth stocks, they anticipate a powerful reversal as market leadership rotates to overlooked value opportunities. |
| Aug 5 2023 | 2023 Q1 | AEP, AMZN, APD, BK, EBAY, HD, KMB, KO, MDT, MTB, PARA, PNC, SLB, TFC, TSN, UNP, USB | Banking, dividends, financials, healthcare, rates, technology, value |
PNC SUNP IN |
Matrix Asset Advisors remains bullish on 2023 stocks despite March banking failures, citing attractive valuations with 44% estimated upside in their Large Cap Value portfolio. Expects Fed rate hikes to pause soon, creating favorable conditions for quality regional banks and dividend growers. Anticipates market leadership broadening beyond mega-cap tech while maintaining equity overweight and adding short-term bond exposure. |
| Mar 22 2023 | 2022 Q4 | MS, TSN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
DividendsThe portfolio focuses on dividend-paying stocks with strong fundamentals. Nine portfolio companies raised dividends by an average of 8.1% in Q2, and fourteen raised dividends by an average of 6.8% in the first half of 2026. The portfolio's 2.69% dividend yield compares favorably to the S&P 500's 1.08% yield and Russell 1000 Value's 1.69% yield. |
Dividend Yield Dividend Growth Income Cash Flow |
AIAI-related semiconductor companies led Technology sector performance in Q2. The letter notes widespread AI implementation across corporate America as a potential risk to employment. The spending binge on AI infrastructure is cited as a positive factor for the economy going forward. |
Semiconductors Technology Infrastructure Automation | |
InflationInflation remained above 4% during the quarter at 4.2% for the twelve months ending May 2026. The Fed's new chairman emphasized bringing inflation down. The late-quarter decline in energy prices is expected to temper inflation. Sticky inflation and persistent inflation above target levels influenced Fed policy expectations. |
CPI Fed Policy Energy Prices Interest Rates | |
RatesInterest rates were flat to modestly higher across the yield curve during Q2. Market expectations shifted from anticipating one or two Fed rate cuts in 2026 to forecasts of a possible rate hike. The 2-year Treasury yield ended at 4.17% and the 10-year at 4.47%. The manager believes the Fed will keep rates higher for longer but is skeptical of rate increases unless inflation accelerates. |
Federal Reserve Treasury Yields Yield Curve Monetary Policy | |
ValueThe manager emphasizes attractive valuations across the portfolio. The MDI portfolio traded at 16.5x estimated 2026 earnings compared to the S&P 500's 21.8x. The manager found good investments in areas left behind in the market's rebound, including Consumer Staples and Healthcare. The equally weighted S&P 500 outpacing the cap-weighted index is viewed as a healthy sign that should benefit their value-oriented approach. |
Valuation P/E Multiples Undervalued Discount | |
Energy TransitionThe war with Iran drove oil prices to spike above $110 per barrel in April before falling sharply to $70 by June 30. Expectations that the war will soon end are anticipated to bring lower energy prices that should stimulate economic growth. The recent pullback in oil and gas prices should provide a helpful boost to the economy by giving consumers more money to spend on things other than energy. |
Oil Prices Geopolitical Consumer Spending Economic Growth | |
| 2026 Q1 |
GeopoliticalThe war with Iran that began February 28 created tremendous near-term uncertainty, driving higher oil prices, interest rates, and market volatility. Manager expects conflict resolution soon and believes markets will rally with de-escalation signs, as historically markets have bounced back from military conflicts. |
Iran War Oil Uncertainty Recovery |
AIAI poses threats to some software businesses and is creating significant stress on white-collar jobs. However, manager believes companies like Microsoft will benefit as more businesses adopt AI, and sees AI disruption fears for companies like ADP as exaggerated. |
Software Jobs Disruption Microsoft Adoption | |
ValueAfter more than a decade of Growth outperforming Value, manager expects Value to be in a period of favorable relative and absolute returns. Current volatile environment provides tailwind for value-oriented strategies. |
Growth Outperformance Relative Returns Cycle | |
DividendsDividend stocks could perform well in heightened volatility as investors seek stability from growing income. Six portfolio companies raised dividends by average 4.2% in quarter, with portfolio yielding 2.83% versus 1.22% for S&P 500. |
Income Stability Yield Growth Volatility | |
OilOil prices nearly doubled from $55.27 to $101.38 during quarter due to Iran conflict, driving energy sector outperformance and inflation concerns. Manager expects oil prices to fall once war ends. |
Energy Inflation Iran Prices Volatility | |
| 2025 Q4 |
AIAI was a dominant market driver of U.S. stocks and continues to influence market leadership. The AI-driven rally led to historic levels of market concentration with just five stocks accounting for nearly 45% of the S&P 500's total return in 2025. Strong AI-related investment was the backbone of U.S. growth in 2025. |
Artificial Intelligence Technology Market Concentration Growth Innovation |
RatesThe Federal Reserve has cut interest rates 1.75% since 2024, easing financial conditions and supporting markets. The Fed resumed rate cuts in September and markets expect further easing into 2026, albeit at a slower pace. Historically, equities have responded favorably following the restart of easing cycles. |
Federal Reserve Interest Rates Monetary Policy Easing Financial Conditions | |
InflationThe inflation storm that dominated recent years appeared to be easing, at least in the short term. November and December inflation surprised to the downside, easing investor concerns about persistent inflation pressures. However, inflation is likely to remain above target near term. |
Inflation Federal Reserve Monetary Policy Economic Data | |
DollarThe U.S. dollar fell more than 9% during 2025, pressured by a high starting valuation and mounting concerns about global investor concentration in U.S. assets. With the Federal Reserve still focused on easing policy, narrowing interest rate differentials may drive a further decline in the dollar. |
US Dollar Currency Federal Reserve International | |
| 2025 Q3 |
AITechnology and Communications sectors led the market rally in Q3, accounting for close to 70% of the S&P 500's performance. Many companies within these sectors benefit from investor enthusiasm for artificial intelligence including the Magnificent 7. The manager expects corporations to continue finding new ways to run their businesses more efficiently as they incorporate AI. |
Technology Communications Magnificent 7 Efficiency Corporate |
DividendsThe Dividend Income strategy focuses on high current and growing income with capital appreciation. Four portfolio holdings increased dividends in Q3 by an average of 8.8%. Twenty portfolio companies increased dividends by an average of 6.4% in the first nine months, with all 26 companies raising dividends in the past year at an average of 6.2%. |
Income Growth Yield Payout Distribution | |
ValueThe Large Cap Value portfolio has an average P/E multiple of 16.9x on estimated 2026 earnings compared to the S&P 500 multiple of 22.1x. The Dividend Income portfolio trades at 16.0x estimated 2026 earnings. The manager emphasizes attractive valuations in lagging defensive sectors like Consumer Staples and Health Care. |
P/E Multiple Valuation Defensive Attractive | |
DefenseThe manager added Lockheed Martin to the Dividend Income portfolio, describing it as the largest U.S. defense contractor supplying advanced military systems. Despite recent underperformance and charges, the manager believes strong defense programs will allow shares to rebound when investors gain confidence in cost overrun resolution. |
Contractor Military Systems Programs Government | |
| 2025 Q2 |
TariffsThe administration's reciprocal tariffs announced on April 2 caused significant market volatility, with stocks falling more than 12% before recovering on a 90-day postponement announcement. The ultimate resolution of reciprocal tariff negotiations remains the biggest risk, with potential for short-term bumps that could hurt the economy and equity market. |
Trade Policy Volatility Economic Risk |
VolatilityQ2 was characterized by tremendous volatility with the market falling over 12% after tariff announcements then rallying 25% from April lows. The manager expects volatility to persist in the second half with sector rotation continuing and markets remaining headline-driven due to unpredictable policy environment. |
Market Volatility Sector Rotation Headlines | |
ValuationsHigh stock valuations may put a ceiling on upside performance and leave little margin of safety for disappointing earnings or outlooks. The manager believes valuations are at record highs and sees better value in fixed income than 12 months ago, leading to reduced equity overweight in balanced accounts. |
Stock Valuation Risk Management Asset Allocation | |
DividendsThe Dividend Income Strategy delivered strong dividend growth with seven portfolio holdings increasing dividends by 5.9% in Q2. Fifteen companies increased dividends by 6.2% in the first half, with 22 of 23 portfolio companies raising dividends in the past year and total portfolio dividend increase of 5.9%. |
Dividend Growth Income Strategy Shareholder Returns | |
| 2025 Q1 |
Trade PolicyThe administration's tariff threats and April 2 Liberation Day 10% tariffs on all imports caused significant market disruption. Tariffs are viewed as policy mistakes that will increase inflation, slow economic growth, and force businesses and consumers to pull back on investments and spending. |
Tariffs Inflation Economic Growth Policy Trade |
VolatilityMarket volatility has increased significantly due to policy uncertainty, with the S&P 500 experiencing its worst month since December 2022 in March. The manager expects continued elevated volatility but views it as creating attractive buying opportunities for high-quality stocks. |
Market Volatility Uncertainty Buying Opportunities Price Swings Risk | |
DividendsThe Dividend Income portfolio companies demonstrated strong dividend growth with eight companies raising dividends by an average of 5.6% in Q1. All twenty-four companies raised dividends in 2024 by an average of 6.2%, with no dividend cuts in the past decade. |
Dividend Growth Income Dividend Yield Dividend History Cash Flow | |
ValueAfter the market decline, portfolios are trading at attractive valuations with the LCV portfolio at 15.2x 2025 estimated earnings and Dividend Income at 15.0x, both at healthy discounts to the S&P 500's 18.8x multiple. |
Valuation P/E Multiples Discount Fair Value Attractive Pricing | |
| 2024 Q4 |
ValueManager expects Value stocks to outperform Growth after more than a decade of underperformance. They anticipate market rotations and regression to the mean for Growth stocks, creating favorable conditions for Value investing. |
Value Growth Rotation Outperformance Regression |
DividendsAll 24 companies in the Dividend portfolio raised dividends in 2024 by an average of 6.2%. The portfolio yields 2.88% versus 1.27% for the S&P 500, providing attractive income generation. |
Dividends Income Yield Growth Distribution | |
RatesFed cut rates three times in 2024 and expectations are for additional cuts in 2025. Rising 10-year Treasury yields to 4.58% created challenges for longer-term bonds but opportunities for short-term fixed income. |
Rates Fed Treasury Yield Curve | |
| 2024 Q3 |
DividendsMatrix's Dividend Income portfolio continues to deliver on its three objectives: generating high current and growing income, downside protection, and capital appreciation. In Q3, three portfolio holdings raised their dividends by an average of 6.1%, and over the past 12 months 23 of 24 holdings increased their dividends by 6.1%. The portfolio maintains a 2.80% dividend yield compared to the S&P 500's 1.28% yield. |
Dividend Yield Income Dividend Growth Shareholder Returns Yield |
RatesThe Federal Reserve's September 0.5% rate cut is viewed as very positive for the economy and increases confidence in capital markets outlook. Lower interest rates are expected to spur economic growth, particularly in interest-sensitive areas like housing. The firm expects continued rate cuts over the next 12-18 months, which should benefit financial holdings and reduce recession risk. |
Fed Funds Rate Interest Rates Monetary Policy Rate Cuts Yield Curve | |
ValueMatrix continues to find opportunities to invest in high-quality companies that have fallen out of favor due to changes in market psychology or short-term business issues. The Large Cap Value portfolio trades at an attractive 17.1x 2025 estimated earnings versus the S&P 500's 20.9x multiple. The Dividend Income portfolio also trades at a discount with a 16.6x P/E multiple. |
Valuation P/E Multiple Discount Undervalued Value Investing | |
| 2024 Q2 |
DividendsThe Matrix Dividend Income portfolio continues to deliver on its three objectives: generating high current and growing income, downside protection, and capital appreciation. In Q2, eight portfolio holdings raised their dividends by an average of 5.9%, and fifteen holdings raised dividends by an average of 6.7% in the first six months. The portfolio maintains a 3.03% dividend yield compared to 1.33% for the S&P 500. |
Dividend Yield Income Dividend Growth Shareholder Returns Cash Flow |
ValueThe firm emphasizes attractive valuations across their portfolios, with the Large Cap Value portfolio trading at 15.3x 2025 estimated earnings versus the S&P 500's 19.7x. They believe valuation disparities between sectors and styles have reached unsustainable levels, with many pockets of undervaluation despite parts of the market being fully priced. |
Valuation P/E Multiples Undervalued Price-to-Earnings Discount | |
AIThe market's returns have been led by Technology & Communications Services sectors holding many stocks benefiting from the booming interest in artificial intelligence. The Magnificent 7 have accounted for 61% of the market return in 2024, though the manager believes this AI mega tech melt up is hitting extremes and expects market leadership to broaden. |
Technology Artificial Intelligence Magnificent Seven Mega Tech Market Leadership | |
RatesThe Fed has made it clear they will keep interest rates high until comfortable that inflation is no longer a threat. Based on slowing economy and declining inflation, the Fed is expected to start an interest rate decrease cycle later this year continuing into 2025. When rate cuts happen, it should boost the housing market with positive spillover effects on the economy and stock market. |
Federal Reserve Interest Rates Rate Cuts Monetary Policy Yield Curve | |
| 2024 Q1 |
UtilitiesUtilities were the worst-performing sector in 2023, creating opportunities to buy high-quality companies with predictable earnings and dividend growth. The sector has emerging growth potential as electricity demand for AI, data centers, and new technology is projected to rise rapidly through the end of the decade. Matrix increased utility exposure from 4% to 10.5% of the portfolio. |
Electric Utilities Dividend Growth AI Power Demand Grid Infrastructure Defensive |
DividendsEight portfolio holdings raised dividends by an average of 6.7% in Q1. The Matrix Dividend Income portfolio maintains a 2.98% dividend yield compared to 1.36% for the S&P 500. The strategy focuses on companies with records of consistently rising earnings and paying high current and growing dividends. |
Dividend Growth Income Yield Dividend Raises Cash Flow | |
AITechnology companies with AI-related businesses delivered some of the best gains in Q1. Electricity demand to power AI investment is expected to drive double-digit growth over the next five years. AI is creating new infrastructure demands that could strain power grids and benefit utility companies. |
Artificial Intelligence Technology Data Centers Power Demand Infrastructure | |
RatesInterest rates rose in Q1 with the 10-year Treasury yield increasing from 3.88% to 4.20%. The Fed kept rates unchanged at 5.25%-5.50% but most members expect multiple cuts this year. Lower rates are expected to boost housing activity and provide a favorable environment for stocks. |
Federal Reserve Interest Rates Rate Cuts Treasury Yields Monetary Policy | |
| 2023 Q4 |
DividendsThe portfolio focuses on high-quality companies that pay strong dividend yields with a long history of continually growing those dividends. The strategy generated high current and growing income with a 3.10% dividend yield and 6.43% average annual dividend growth. |
Dividend Growth Income Yield Payout |
| 2023 Q3 |
DividendsThe Dividend Income portfolio focuses on companies that pay regular dividends, with 17 companies announcing dividend increases in 2023 averaging 6.8%. The portfolio maintains a 3.35% dividend yield compared to 1.61% for the S&P 500, demonstrating the strategy's focus on generating strong and growing current income. |
Dividend Yield Income Dividend Growth Payout |
RatesInterest rates rose significantly in Q3 with the 10-year Treasury reaching 4.57%, the highest since 2007. The Fed raised rates to 5.25%-5.50% and signaled keeping rates higher for longer, though Matrix believes the Fed will soon pivot to cutting rates as economic data shows slowing growth. |
Fed Funds Treasury Monetary Policy Rate Cuts | |
ValueBoth the Large Cap Value and Dividend Income portfolios trade at attractive valuations with P/E multiples well below the S&P 500. The LCV portfolio trades at 15.6x 2023 earnings versus 19.4x for the S&P 500, with embedded appreciation potential of 49.9% above long-term averages. |
P/E Multiple Valuation Undervalued Fair Value | |
| 2023 Q2 |
AIAI enthusiasm has driven investor interest in technology stocks expected to benefit from artificial intelligence advances. The AI rally has boosted mega-cap technology stocks in the first half of 2023, though the manager expects the AI mania to subside and performance to broaden beyond these concentrated winners. |
Technology Growth Mega Cap Rally |
DividendsDividend-paying stocks have significantly underperformed in 2023 as very few mega-cap technology stocks driving market returns pay dividends. The manager believes this underperformance will reverse with a powerful catch-up period for dividend payers as market returns broaden. |
Income Yield Underperformance Value | |
ValueValue stocks have struggled in 2023 despite attractive valuations, with the manager's Large Cap Value portfolio benefiting from exposure to mega-cap technology names. The manager expects value stocks to outperform as market leadership broadens beyond the concentrated technology winners. |
Undervalued Multiples Rotation Opportunity | |
BuybacksInsider buying activity has reached the highest levels in many years across the manager's portfolios, with 21.4% of holdings showing meaningful insider purchases. This elevated insider buying strongly supports the manager's bullish outlook for their stock holdings. |
Insiders Signal Confidence Opportunity | |
| 2023 Q1 |
Regional BanksThree U.S. banks failed in March, creating market volatility and concerns about banking system stability. Manager believes the selloff in regional bank stocks is overdone and will be short-lived, expecting strong rebounds in high-quality financials. Portfolio includes well-capitalized banks like PNC Financial that are likely to gain market share. |
Banking Credit Financials Deposits Regulation |
DividendsNine portfolio holdings raised dividends by an average of 6.1% in Q1. Portfolio maintains a 3.12% dividend yield, significantly higher than the S&P 500's 1.68% yield. Manager continues to focus on companies with consistent dividend growth and safe payout ratios. |
Income Yield Payout Growth Distribution | |
RatesFederal Reserve raised rates twice in Q1 by 0.25% each time, bringing short-term rates to 4.75%-5.00%. Manager believes rates have likely peaked for this cycle and expects the Fed to pause or stop after possibly one more hike. Short-term bonds are viewed as attractive with good income and minimal principal risk. |
Fed Monetary Policy Bonds Yield Curve Duration | |
ValueMarket valuations came down significantly in 2022 while earnings and dividends for high-quality companies rose. Manager's valuation work shows above-average appreciation potential with the Large Cap Value portfolio having an estimated upside potential of more than 44%. Portfolio trades at attractive P/E ratios relative to the S&P 500. |
Valuation P/E Discount Appreciation Multiple |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | Fund Letters | Matrix Dividend Income | HRTX | RTX Corp. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Commercial Aviation, Defense, Engine Components, Industrials, Military Contractor, turnaround, Value | Login |
| Sep 30, 2023 | Fund Letters | Matrix Dividend Income | NEE | NextEra Energy | Utilities | Electric Utilities | Bull | NYSE | Battery Storage, dividend, Electric Utility, Florida, regulated utility, renewable energy, Solar, utilities, Wind | Login |
| Jul 28, 2026 | Fund Letters | Matrix Dividend Income | ABT | Abbott Laboratories | Medical Devices | Health Care Equipment | Bull | New York Stock Exchange | defensive, diagnostics, Diversified, Dividend Growth, healthcare, Medical devices, pharmaceuticals, recurring revenue, Value | Login |
| Jul 28, 2026 | Fund Letters | Matrix Dividend Income | MCD | McDonald's Corporation | Restaurants | Hotels, Restaurants & Leisure | Bull | New York Stock Exchange | Brand, cash flow, Consumer Discretionary, defensive, Dividend Growth, franchise model, Quick Service Restaurant, turnaround, Value | Login |
| May 13, 2026 | Fund Letters | Matrix Dividend Income | INTU | Intuit Inc. | Software - Application | Application Software | Bull | NASDAQ | AI disruption, Ecosystem, financial technology, SaaS, small business, Software, tax preparation, Value | Login |
| May 13, 2026 | Fund Letters | Matrix Dividend Income | NKE | Nike Inc. | Footwear & Accessories | Footwear | Bull | New York Stock Exchange | Athletic Footwear, Brand, China, direct-to-consumer, insider buying, Sports apparel, turnaround, Wholesale | Login |
| May 13, 2026 | Fund Letters | Matrix Dividend Income | ADP | Automatic Data Processing Inc. | Software - Application | Data Processing & Outsourced Services | Bull | NASDAQ | AI disruption, business services, dividend aristocrat, High retention, Human Resources, Mission-Critical, Payroll Services | Login |
| May 13, 2026 | Fund Letters | Matrix Dividend Income | PG | Procter & Gamble Co. | Household & Personal Products | Personal Products | Bull | New York Stock Exchange | Consumer products, consumer staples, defensive, dividend aristocrat, Global Brands, Inflation Pressure, innovation | Login |
| Jan 30, 2026 | Fund Letters | David A.Katz | TXN | Texas Instruments Incorporated | Information Technology | Semiconductors | Bull | NASDAQ | Cyclicality, Industrial, Margins, semiconductors, valuation | Login |
| Jan 30, 2026 | Fund Letters | David A.Katz | FISV | Fiserv, Inc. | Financials | Transaction & Payment Processing Services | Neutral | New York Stock Exchange | earnings, Execution, management, Payments, Risk | Login |
| Nov 16, 2025 | Fund Letters | David A.Katz | ACN | Accenture plc | Information Technology | IT Consulting & Other Services | Bull | NYSE | buybacks, Consulting, dividend, Free Cash Flow, technology | Login |
| Nov 16, 2025 | Fund Letters | David A.Katz | STZ | Constellation Brands, Inc. | Consumer Staples | Beverages (Alcoholic) | Bull | NYSE | Beer, brands, Cyclical, dividend, valuation | Login |
| Nov 16, 2025 | Fund Letters | - | LMT | Lockheed Martin Corporation | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Charges, Defense, dividend, recovery | Login |
| Jul 8, 2025 | Fund Letters | Matrix Dividend Income | AMAT | Applied Materials | Information Technology | Semiconductor Equipment | Bull | NASDAQ | Artificial Intelligence, buybacks, cash flow generation, dividends, high-performance computing, Manufacturing Equipment, R&D investment, semiconductor equipment, technology | Login |
| Jul 8, 2025 | Fund Letters | Matrix Dividend Income | FI | Fiserv | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Contrarian Investment, Data Processing, Earnings Guidance, Financial Services Technology, Management Discussion, Payments, risk/reward | Login |
| Dec 31, 2024 | Fund Letters | Matrix Dividend Income | AMGN | Amgen Inc. | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, Cancer Therapeutics, cardiovascular, dividend, drug approval, healthcare, Monthly Dosing, obesity treatment, pharmaceuticals, rare diseases | Login |
| Dec 31, 2024 | Fund Letters | Matrix Dividend Income | DG | Dollar General Corporation | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | Budget Conscious, convenience stores, defensive, discount retail, Earnings-recovery, Low-Income Consumers, Multi-Year Low, Rural Markets, turnaround, Value retail | Login |
| Dec 31, 2024 | Fund Letters | Matrix Dividend Income | PEP | PepsiCo, Inc. | Consumer Staples | Soft Drinks | Bull | NASDAQ | Adaptability, Below Market Valuation, Beverages, consumer staples, dividend yield, political uncertainty, Regulatory risk, Snacks, Volume Trends, Well-managed | Login |
| Sep 30, 2024 | Fund Letters | Matrix Dividend Income | MDT | Medtronic | Health Care Equipment & Services | Health Care Equipment | Bull | NYSE | Equity, healthcare, Medical devices, Medical Procedures, pandemic recovery, Value | Login |
| Sep 30, 2024 | Fund Letters | Matrix Dividend Income | BDX | Becton Dickinson | Health Care Equipment & Services | Health Care Equipment | Bull | NYSE | Acquisitions, Critical Care, Earnings Accretive, Equity, healthcare, Medical devices, Value | Login |
| Sep 30, 2024 | Fund Letters | Matrix Dividend Income | NESN.SW | Nestlé | Consumer Staples | Packaged Foods & Meats | Bull | SIX Swiss Exchange | brand portfolio, consumer staples, defensive, Dividend Growth, Equity, Packaged Foods, Switzerland, Value | Login |
| Jun 30, 2024 | Fund Letters | Matrix Dividend Income | LOW | Lowe's Companies Inc | Consumer Discretionary | Home Improvement Retail | Bull | NYSE | Consumer Discretionary, COVID-19 Beneficiary, Cyclical, home improvement, market share, retailer, Value | Login |
| Jun 30, 2024 | Fund Letters | Matrix Dividend Income | MDT | Medtronic plc | Health Care | Health Care Equipment | Bull | NYSE | cardiovascular, COVID-19 recovery, Global, healthcare, Implantable Devices, Medical devices, Neuroscience, turnaround | Login |
| Mar 31, 2024 | Fund Letters | Matrix Dividend Income | AEP | American Electric Power | Utilities | Electric Utilities | Bull | NASDAQ | Activist Investment, AI infrastructure, data centers, defensive, Dividend Growth, Electric Utility, Icahn, Predictable Earnings, Technology Demand | Login |
| Mar 31, 2024 | Fund Letters | Matrix Dividend Income | TSN | Tyson Foods | Consumer Staples | Packaged Foods & Meats | Bull | NYSE | brand portfolio, Cost Reduction, Cyclical Recovery, Food Processing, operational improvements, Profit Recovery, Protein Processing, turnaround | Login |
| Jul 10, 2023 | Fund Letters | Matrix Dividend Income | AAPL|MSFT|NFLX|NVDA|UNH | UnitedHealth Group | Health Care | Health Care Providers & Services | Bull | NYSE | defensive, health insurance, healthcare, market leader, Medical Services, Optum, value opportunity | Login |
| Jul 10, 2023 | Fund Letters | Matrix Dividend Income | PFE | Pfizer Inc. | Health Care | Pharmaceuticals | Bull | NYSE | dividend yield, earnings growth, healthcare, pharmaceuticals, Post-COVID Transition, vaccines, Value | Login |
| Apr 11, 2023 | Fund Letters | Matrix Dividend Income | PNC | PNC Financial Services Group | Financials | Regional Banks | Bull | NYSE | asset management, banking, Credit risk, dividend, fee income, financials, regional banks, Treasury Services, Value | Login |
| Apr 11, 2023 | Fund Letters | Matrix Dividend Income | SUNP IN | Union Pacific Corporation | Industrials | Railroads | Bull | NYSE | Cost advantage, dividend, growth, Industrials, infrastructure, market share, railroads, Transportation, Value | Login |
| - | Fund Letters | Matrix Dividend Income | GNRC | Generac Holdings Inc. | Industrials | Electrical Equipment | Bull | NYSE | backup power, Commercial, electrical equipment, energy solutions, Industrial, infrastructure, Power generation, Residential, secular growth | Login |
| - | Fund Letters | Matrix Dividend Income | PEP | PepsiCo, Inc. | Consumer Staples | Soft Drinks | Bull | NASDAQ | Beverages, consumer staples, defensive, Dividend Growth, Income, Processed Foods, Snacks, Volatile Market, weight-loss drugs | Login |
| - | Fund Letters | Matrix Dividend Income | TGT | Target Corporation | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | Consumer Discretionary, dividend aristocrat, Dividend Growth, Economic Slowdown, General Merchandise, retail, tariffs, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| ABT | ABT is a diversified global healthcare company that operates across four primary business segments: Medical Devices, Diagnostics, Nutrition, and Established Pharmaceuticals. We believe that the company is an attractive investment for the portfolio because of its recurring revenues, strong balance sheet, 54 years of dividend increases, and its price pullback from a 52-week high of $139 to its current price of under $90. At less than 16 times estimated 2026 earnings, the stock is trading at a 25% discount to the market and its own P/E multiple history. At our purchase price, the dividend yield was 2.8%. |
| MCD | MCD is a multinational fast-food chain known for its hamburgers, French fries, and signature items such as the Big Mac and Happy Meal. Historically, the company's financial performance has been very resilient. Ninety-five percent of McDonald's restaurants are owned by franchisees who pay employee wages, local utilities, and food costs. The company charges franchisees for rent, sales royalties, and a one-time licensing fee. MCD generates significant cash flow and has paid a dividend every year since declaring its first dividend in 1976. The company's shares were trading near their 52-week low amid concerns about weaker customer traffic, the negative impact of inflation on consumer spending, and price wars. We believe the company will work through these near-term issues, and the current lower share price and healthy dividend make it an attractive investment for the MDI portfolio. At our purchase price, the dividend yield was 2.8%. |
| QCOM | We trimmed positions in the technology names Qualcomm and Texas Instruments after their share price gains made them oversized in the portfolio. |
| TXN | We trimmed positions in the technology names Qualcomm and Texas Instruments after their share price gains made them oversized in the portfolio. |
| BK | We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. |
| MS | We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. |
| TGT | We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. |
| NEE | We also reduced positions in the financial names, Bank of New York Mellon and Morgan Stanley, the retailer Target, and the utility NextEra Energy after strong stock price performance. We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| ACN | For taxable accounts, we realized a loss in Accenture, a name we expect to repurchase after 31 days. |
| ADP | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| CMCSA | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| STZ | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| HD | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| MDT | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| PEP | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| PG | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| TSN | We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
