Investing Experts Investing Experts Live: Steven Bavaria and Samuel Smith's top income picks for 2026
Jan 28, 2026
Samuel Smith, High Yield Investor leader focused on dividend and alternative income picks OWL; Steven Bavaria, income-focused analyst behind The Income Factory recommending FOF. They debate income-building strategies, FOF’s covered distribution and diversification, OWL’s permanent-capital advantages, valuation gaps with peers, underwriting strength, and ways to protect retirement income.
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Income Factory Over Capital Gains
- Steven Bavaria frames investing as building an "income factory" that compounds cash yields rather than relying on capital gains.
- He argues reinvesting high cash yields can create predictable income growth and reduce sequence-of-returns risk.
Reinvest Distributions During Dips
- Do reinvest distributions during market dips to compound income at lower prices and higher yields.
- Reinvesting steadies long-term income growth and benefits from buying when markets are down.
Choose Conservative Closed-End Funds
- Consider closed-end fund FOF for diversified income exposure to over 100 closed-end funds and covered distributions near 8%.
- Prioritize funds that maintain distributions conservatively and preserve NAV growth over chasing unsustainable yields.
