Brett McNeill, Portfolio Manager at Djerriwarrh Investments (ASX: DJW), outlined the company’s income-focused strategy following the release of its half-year results. The interim dividend was maintained, with the portfolio yield remaining about 2.6 percentage points above the S&P/ASX 200 Index.
Djerriwarrh generates enhanced income by writing options, predominantly call options, over shares it holds in its portfolio. The strategy is used to produce additional income rather than for hedging or speculation. While this approach supports higher yield, it can moderate capital growth in strongly rising markets, as shares may be called away.
During the period, options were exercised over holdings including Telstra, Region Group and several major banks, with proceeds reinvested into selected positions such as Woolworths and other growth-oriented companies.
McNeill said the portfolio remains defensively positioned, with a mix of income and growth stocks and a high level of option coverage, reflecting current market valuations.
