We believe that financially strong companies with rising dividends offer the most consistent performance as well as the highest added value. Over the long term, numerous studies have shown that dividend-paying stocks outperform non-dividend-paying stocks, and companies that increase their dividends generally perform the best.
Stock prices may fluctuate, but dividends are always positive, and over time, increases in dividends can induce increases in the price of the equity generating those dividends.
“High quality” is an assessment we make based on many factors, including balance sheet strength plus a company’s ESG (Environmental, Social, and Governance) policies and practices. Our overall investment philosophy drives our objectives — to generate total returns in line with or better than the broad equity market and to provide a high and rising stream of income with modest volatility and low correlation.
Infrastructure assets provide the framework for economic growth and social development. They are the core and the essence of a modern economy. Growth of the economy and markets is dependent on the services they provide. Many studies show that we are at the beginning of the largest wave of investment in real productive assets the world has ever seen.
In addition, MLPs are a fine example of our firm’s basic investment philosophy: HIGH QUALITY STOCKS + HIGH YIELD + GROWTH OF YIELD = HIGH TOTAL RETURN. Numerous studies, including our own, show that financially strong stocks with rising dividends offer the most consistent performance, as well as the highest added value. Focusing on MLPs with growth of distributions provides many benefits to investors: inflation hedge, ability to meet annual expenses from income alone, and positive signal from management about future prospects for a company, to name a few. See our strategies.