Investment Strategy

Portfolio Management

We work with each client to determine an appropriate asset allocation based on investment objective, risk tolerance and any factors that may be important to a specific client.

Most of our equity strategies are focused on owning high-quality, dividend-paying stocks that have demonstrated resilience through good and bad market cycles as evidenced by a track record of annual dividend increases.

We can pair our equity strategies in balanced accounts with either a taxable or tax-free fixed income strategy based on the appropriate asset allocation determined for each client.

For clients with asset levels that may not be adequately diversified through individual stock ownership, we have Exchange Traded Fund (“ETF”) strategies appropriate for a variety of investment objectives.

NovaPoint Dividend Growth Strategy

Investing in stocks that have a track record of annual dividend increases may offer investors above average total returns and a reduction of overall portfolio risk.

Our research shows that a portfolio of companies with track records of raising their dividends have, on average, produced total returns higher than both the market and their non-dividend paying peers.

We favor companies with consistent dividend growth for the following additional reasons:

• Rising dividends may be an indication of both rising profitability and future prospects.
• A consistent dividend policy focuses management on rationing capital to its best uses. Excess capital is shared with investors versus dragging returns or wasted on uneconomic investments.
• Dividend payments are real versus announced share buybacks that may never come to fruition.
• Rising dividends may serve as an inflation hedge for investors.

Not all dividends are created equal and we seek to avoid companies that may be forced to reduce or eliminate their dividends. We may pay particular attention to avoiding companies with unsustainable payout ratios or that use debt to fund their dividends.

A combination of fundamental, quantitative, and technical analysis factors support investment selection.

NovaPoint Focused REIT Strategy

This strategy focuses on owning Real Estate Investment Trusts in both traditional and specialty end-markets. All companies are primarily based in the United States.

An additional focus is on REITs in higher growth industries such as technology, telecom, and e-commerce logistics. A combination of fundamental, quantitative, and technical analysis factors support investment selection.

NovaPoint Power – Utility – Grid – Strategy

This strategy focuses on owning companies in the generation, transmission, and distribution of electricity and natural gas in the United States, as well as companies that supply the industry with vital infrastructure products and services.

An additional focus is on utilities serving areas of the United States benefitting from net in-migration to support a growing base of residential and commercial customers. A combination of fundamental, quantitative, and technical analysis factors support investment selection.

NovaPoint Growth Strategy

This strategy owns large cap growth stocks with above average earnings growth trajectories. The Strategy typically owns 15 to 25 stocks with a concentration in high growth industries or in companies with a unique moat within their market niche. Additional fundamental, quantitative, and technical analysis factors support investment selection.