Dividend Growth portfolios will hold stocks with a track record of both growing & paying dividends. Historically, dividends have comprised over 40% of stock returns and help buffer against market volatility. We will also take prudent risk relative to your goals and individual tolerance for volatility.
Steady Earnings Growth
Out of Favor Stocks and/or Sectors
Strong Cash Flow and Dividend Growth
Compose portfolios of 30-40 companies diversified across economic sectors.
Have a long-term investment horizon which has historically resulted in low portfolio turnover of approximately 25%.
Actively manage taxes with the potential for year-round tax loss harvesting opportunities and other tax-sensitive investment management strategies.
Invest in companies whose dividend yield equals or exceeds the S&P 500 Index, have a track record of dividend growth and the financial ability to increase dividends.
Focus on high-quality companies with strong and sustainable free cash flow from operations.
Identify companies trading at a discount to intrinsic value with a margin of safety to dampen potential volatility relative to the market.
Take selectively a contrarian approach and invest out of favor stocks and/or sectors.
Limit the portfolio to generally no more than 25% of portfolio assets in any one sector with initial stock position sizes of 1% to 4%.
Analyze individual stocks on a fundamental basis, and assess growth potential within broad secular themes.
Develop valuation estimates based on the most appropriate parameters for each company, typically Discounted Cash Flow, Price-to-Earnings, or Price-to-Cash Flow.