Q1 2026 STRATEGY PERFORMANCE:
The high dividend, high quality stocks in the strategy rose 6.71% net in the quarter while the Russell 1000 Value ETFs rose 1.97%. We are thrilled with the strategy’s returns this quarter and believe the best days for dividend and value investors are yet to come. Similar to the peak of the dot.com bubble, we believe the allegedly boring blue-chips trading at big discounts to the market with healthy dividends may provide investors with valuable diversification, reliable income, and significant compounding potential with much less risk than the S&P 500.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Value and Midcap benchmark ETFs delivered modest but positive returns in Q1 2026 of 1.97% and 1.27%, respectively, due to their relatively large exposures to the Energy sector. In contrast, with much smaller weights in Energy and big losses in Information Technology stocks, Large Cap Core declined -4.29% and Growth, which has almost no Energy stocks, tumbled -9.83%.
L2 Dividend Income Strategy – March Q1 2026
Table of contents
When
April 2, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q1 2026 STRATEGY PERFORMANCE:
The high dividend, high quality stocks in the strategy rose 6.71% net in the quarter while the Russell 1000 Value ETFs rose 1.97%. We are thrilled with the strategy’s returns this quarter and believe the best days for dividend and value investors are yet to come. Similar to the peak of the dot.com bubble, we believe the allegedly boring blue-chips trading at big discounts to the market with healthy dividends may provide investors with valuable diversification, reliable income, and significant compounding potential with much less risk than the S&P 500.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Value and Midcap benchmark ETFs delivered modest but positive returns in Q1 2026 of 1.97% and 1.27%, respectively, due to their relatively large exposures to the Energy sector. In contrast, with much smaller weights in Energy and big losses in Information Technology stocks, Large Cap Core declined -4.29% and Growth, which has almost no Energy stocks, tumbled -9.83%.