THE FLY HIGH INVESTING PROCESS

Income Performance of the Fly High 50 Model Portfolio

Introduced in 2017, the Fly High 50 is a continuously monitored model portfolio designed to demonstrate an income-investing methodology built around recurring earnings, dividend coverage, valuation and disciplined reinvestment.

Subscribers receive the published model holdings, company research and continuing updates. Each subscriber independently decides whether and how to use that information in a self-directed brokerage account. The Fly High 50 is a research model, not an individualized investment recommendation or a managed account.

Historical portfolio income, dividend growth and total returns illustrate how the methodology has performed in the past. They do not guarantee future dividends, income growth or investment returns.

Why We Research Income-Oriented Companies

The Fly High 50 primarily researches Real Estate Investment Trusts (REITs), Business Development Companies (BDCs) and other Regulated Investment Companies (RICs). These structures commonly distribute a substantial portion of their income to shareholders and can therefore provide useful opportunities for income-focused research.

Distribution requirements do not make a company or its dividend safe. Earnings, cash flow, leverage, asset quality, financing costs, management decisions and economic conditions can all affect a company’s ability to maintain its distribution. A high yield may also reflect increased business or market risk.

REITs and RICs must meet applicable statutory and regulatory requirements. BDCs are also subject to provisions of the Investment Company Act of 1940, including rules involving leverage, governance and reporting. These structures can support dividend-paying capacity, but they do not prevent earnings declines, dividend reductions or capital losses.

How We Evaluate Dividend Support

Fly High evaluates dividend support using a balanced four-quarter view of recently reported earnings and available forward-looking analyst estimates. The objective is to compare the income being distributed with the earnings or cash flow available to support it.

Our analysis considers factors such as recurring earnings, dividend coverage, distributable cash flow, leverage, liquidity, asset quality, financing costs and relevant company guidance. We also review whether changes in earnings appear temporary, structural or linked to broader economic conditions.

Analyst estimates and company guidance are inherently uncertain. They may change as new information becomes available and should not be treated as guarantees. Dividend sustainability can only be evaluated using the information available at the time of the analysis.

How We Select and Maintain the Model Portfolio

Our selection process begins by screening income-oriented publicly traded companies. We evaluate candidates using the published Fly High methodology, including recurring earnings, dividend coverage, valuation, asset quality and the potential usefulness of reinvesting the income.

The Fly High 50 is monitored for earnings releases, dividend announcements, financing activity, credit developments, regulatory filings and other events that may materially affect the published investment thesis.

When a company no longer satisfies the methodology, it may be removed from the model portfolio and replaced with another qualifying company. Portfolio changes represent changes to the published research model. They are not personalized instructions for subscribers to buy, sell, hold or replace a security.

How the Fly High 50 Differs from Traditional Funds

The Fly High 50 is not a mutual fund, exchange-traded fund, pooled investment vehicle or investment advisory account. Fly High Investing does not hold subscriber assets, execute trades or manage subscriber brokerage accounts.

Traditional funds operate under their own objectives, mandates and portfolio-management processes. Index funds generally hold securities included in an underlying benchmark. The Fly High 50 instead illustrates a published income-investing methodology centered on recurring earnings, dividend coverage, valuation, asset quality and income-compounding potential.

Other funds and research services may use different mandates and methods. Investors should compare objectives, holdings, fees, risks and historical results before drawing conclusions.

Research and Tools for Disciplined Income Investing

A Fly High Investing subscription provides access to the current Fly High 50 Model Portfolio, company research, portfolio updates, educational materials and analytical tools.

Subscribers retain control of their own accounts and make their own investment decisions. Subscription fees pay for access to Fly High publications and research. They do not purchase portfolio management, individualized investment advice or a guarantee of investment results.

Fly High materials can explain the published methodology, discuss general diversification and dividend concepts, and explain why a company entered or left the model portfolio. Questions involving personal suitability, portfolio allocation, retirement planning, taxes or individual financial circumstances should be directed to an appropriately licensed professional.

Explore the Fly High methodology and continuing portfolio research.