In our dividend-focused portfolios, we strive to hold equities that meet four key criteria: high current yield, prospects for dividend growth, financial strength, and earnings stability. High income can either be used to fund current needs or, when reinvested, to drive the mathematics of compounding to grow the investor's wealth over time. Dividend growth reflects current and future prospects for a company. Financial strength suggests that a company can continually pay and increase its dividends regardless of market cycles.
Our dividend portfolios:
- Provide unfixed income. Clients benefit from high current income while participating in a growing income stream, which can serve as a hedge against inflation. Fixed income investments, by their very nature, cannot provide this inflation hedge.
- Harness the power of compounding. Over time, compounding income—not style, sector, or asset allocation—can be a main driver of long-term returns and wealth creation.
- Invest in mature companies. We like real businesses that generate attractive returns and continue to pay and potentially grow their dividends.
Many of our dividend portfolios are ESG managed.