The high dividend, high quality stocks in the strategy rose 8.52% net in the quarter while the Russell 1000 Value ETF rose 13.81%. As an income-oriented mandate, the strategy is currently overweight safer, higher-yield, defensive, and commodity-linked businesses with very low valuations — precisely the profile that lagged most in a quarter where capital flowed toward growth, momentum, and technology.
The pressure was concentrated in exactly the areas an income mandate is designed to emphasize, and it reflected market rotation rather than any deterioration in the underlying businesses. The largest individual detractors — AT&T and Accenture — remain financially sound, cash-generative companies whose shares simply de-rated as investors chased growth. The commodity and energy complex, where valuations and dividend yields remain among the lowest in the market on investor pessimism, gave back some recent gains: CF Industries, AngloGold, Devon Energy, EOG, and Schlumberger. High-quality defensive holdings such as Lockheed Martin, Comcast, and Johnson & Johnson rounded out the drag.
L2 Dividend & Income Strategy Commentary – June Q2 2026
Table of contents
When
July 15, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q2 2026 STRATEGY PERFORMANCE:
The high dividend, high quality stocks in the strategy rose 8.52% net in the quarter while the Russell 1000 Value ETF rose 13.81%. As an income-oriented mandate, the strategy is currently overweight safer, higher-yield, defensive, and commodity-linked businesses with very low valuations — precisely the profile that lagged most in a quarter where capital flowed toward growth, momentum, and technology.
The pressure was concentrated in exactly the areas an income mandate is designed to emphasize, and it reflected market rotation rather than any deterioration in the underlying businesses. The largest individual detractors — AT&T and Accenture — remain financially sound, cash-generative companies whose shares simply de-rated as investors chased growth. The commodity and energy complex, where valuations and dividend yields remain among the lowest in the market on investor pessimism, gave back some recent gains: CF Industries, AngloGold, Devon Energy, EOG, and Schlumberger. High-quality defensive holdings such as Lockheed Martin, Comcast, and Johnson & Johnson rounded out the drag.