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.

Our equity strategy seeks to own 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 may pair this equity strategy 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.

Equity Strategy – Dividend Growth

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.