Yield Hunter

The strategy prioritizes the highest sustainable dividend yields in the universe while using price history, returns, distance from 52-week highs, volatility, and fundamental coverage (payouts, FCF/AFFO, growth streaks, recent results) to reject yield traps where a high yield mainly signals a collapsing share price or unsustainable payout. Current holdings are rebalanced toward equal-ish weights near 15-18% (under the 20% cap) for the best 6 names, fully invested, for the monthly hold horizon. Top keeps/boosts: MO (6.2% yield, progressive mid-single-digit growth goal, ~80%+ earnings/cash coverage, pricing power offsets volume declines, modest -9% off highs and positive 6m return—not collapsing); VZ (5.94%, 20+ years of raises, healthy ~50-70% payout and strong FCF, recent price strength +13% 1m); O (5.18%, monthly aristocrat with 30+ year increases, healthy ~73% AFFO payout, raised 2026 AFFO guidance, stable low-vol price action). Added T (4.67%, now very well covered by $18B+ FCF guidance vs ~$8B dividend, low ~37% earnings payout, flat but reliable post-past-cut; 6m weakness and -16% off highs but strong recent recovery and not a trap). Kept KMI (3.82%, slow growth, solid cash coverage, self-funding midstream, moderate off-highs) and D (3.96%, earnings coverage and affirmed guidance, positive longer-term returns) at slightly reduced weights as secondary high-yielders despite D's negative FCF and elevated payout (monitor closely, not currently a collapse-driven trap). Explicitly rejected lower or weaker yields: ABBV (only 2.78%—not high-yield enough despite strong momentum and quality); ED (3.22%) and DUK (3.41%)—solid utilities but yields too low for the hunt; PM (3.1%—safe, growing via smoke-free, good momentum, but relatively low yield so exited to fund higher ones). No other universe names qualify as high-yield without trap risk. Portfolio stays 6 names, long-only, no leverage.

Selected 6 high-yield names with solid or non-collapsing price action to reach exactly 6 positions at ~16.67% each (sum to 1.0, all <=20%). Rejected T (high 5.26% yield but clear yield trap: sharply negative returns across 1m/3m/6m periods indicating collapsing stock price). Rejected ABBV, ED, and DUK (yields too low at 2.65-3.82% to qualify as high-yield focus). VZ kept despite recent dips due to positive 6m return and highest yield.

Validator rejections: final portfolio weights sum to 1.1200 — exceeds 1 (no leverage / min cash); final portfolio weights sum to 1.0002 — exceeds 1 (no leverage / min cash)