- Pre-retirees can reinvest the income as additional savings while building a larger stream of future retirement income and growth. When they are ready to retire, they can simply start withdrawing the income monthly to fund their expenses.
- Retirees can receive a growing stream of monthly retirement income while keeping their savings invested to grow over time.
ENDOWMENTS AND FOUNDATIONS
CONSISTENT DIVIDEND GROWTH DEMONSTRATES:
RETURNS OF S&P 500 STOCKS BY DIVIDEND POLICY (2002-2022)
|Dividend cutters and eliminators||Non-dividend paying stocks||Dividend payers with no change in dividend||Dividend growers and initiators|
We perform four jobs for our clients.
PORTFOLIO CONSTRUCTIONS - THE FOUR JOBS
1Provide significant and reliable current income
2Grow income annually at targeted rates
3Provide attractive long-term total returns
4Be resilient in down markets
We combine quantitative screening and fundamental analysis.
Our investment process builds on our commitment to the four jobs. We employ a combination of quantitative screens and fundamental analysis to establish our investible universe and to rank opportunities for security selection.
Our initial screen begins with all publicly traded securities on U.S. exchanges and must meet a number of factors, including the following three minimum criteria:
- 3 years of dividend growth
- 2 percent average dividend growth rate
- 1 percent current dividend yield
Perform quantitative analysis of investable universe using proprietary models to rank companies.
Conduct fundamental analysis of top-ranked companies with a special focus on dividend growth expectations.
Construct diversified portfolio that balances the four jobs to meet client objectives.
Monitor and adjust as needed to make sure portfolio is achieving targets for income, income growth and appreciation.
LONG TERM OBJECTIVES
|Yield Target||Annual Dividend Growth Target|
|4.0% - 5.0%||4% - 6%|
|3.0% - 4.0%||6% - 8%|
|2.0% - 3.0%||8+%|
|Dividend Yield||Dividend Growth (5 yr, historical)||Weighted Avg. Market Cap (mil)||P/E (NTM)||EPS Growth (5 yr, historical)||ROIC||# of Holdings|