The goal of our investment strategy is to increase portfolio income by investing in companies that sustainably grow their dividends year after year. As the dividend grows, the company’s stock should eventually follow, resulting in a total return that continually compounds over time.
The dividends of the S&P 500 (before 1957, the S&P Composite) have grown at an average rate of 6% per year since 1939. Over that same period, roughly half of the market’s return has come directly from dividends. This is the baseline thesis of our strategy, rooted in more than 80 years of stock market history.
We believe that U.S. GDP will continue to grow in the long run and the companies of the S&P 500 will be at the core of that growth. As GDP grows, company earnings expand, which then allows companies to payout more returns to investors through dividends. From our perspective, focusing on companies that grow their dividend annually results in a higher-quality portfolio.
Our job then becomes relatively simple: to find companies with sustainable dividend growth and purchase them at attractive prices. It sounds easy, but it takes discipline to execute.
Fixed Income Approach
While we focus on the overall total return of your portfolio, your risk tolerance sets a boundary on equity exposure. Most of our clients have allocated some portion of their portfolio to fixed-income investments, but this depends on the individual and their objectives.
Our focus is on three areas: interest rate risk, credit quality, and client liquidity requirements. Each area has its own unique circumstances and challenges. Even still, all three can be combined to form a comprehensive portfolio. Our goal is to use the fixed-income portion of your portfolio to boost the stability of your account, not add risk.
If equity exposure just isn’t something that fits your financial goals, we offer 100% fixed income & cash portfolio management.
When your investment time horizon is short and your liquidity needs are high, we offer cash management so that you or your business can earn an attractive return on idle cash.
We utilize money market funds, CDs, Treasuries, and other cash-equivalent investments to take advantage of current market rates that may not be available through traditional banking. These investments are extremely low-risk and highly liquid, which allows for everyday flexibility. By actively managing your cash, we strategically structure maturities to maximize returns while balancing cash inflows and outflows.
As an added benefit, our custodians safeguard your cash beyond the usual $250,000 FDIC limit.
COMPREHENSIVE FINANCIAL PLANNING
Pieces of The Puzzle
Only 30% of Americans have a long-term financial plan, 25% of U.S. adults have no retirement savings, and a modest 36% of adults feel as though their savings plans are on track. Our goal is for you to feel secure with your financial future.
Imagine you are hiking a mountain, a large summit off in the distance. Identifying where you want to go is relatively easy, but without a clear-cut path, getting there is much more difficult. The same is true for long-term financial goals.
Knowing what your goals are is the first hurdle. Developing a financial plan to achieve them is where we come in. Through a collaborative process, we will develop a comprehensive financial plan that illuminates your strengths and identifies areas of improvement.
Our purpose is to assist you in organizing the financial aspects that impact your life the most, develop action strategies, and be a resource for whatever life throws at you.
Key Areas of Focus
- Retirement Funding & Cash Flow
- Lifestage Transitions
- Effects of Major Purchases
- Insurance Coverage
- Tax Optimization
Under the fiduciary standard, our firm is ethically and legally bound to foster relationships of trust and prudence. Said differently, we must always act in the best interest of our clients, regardless of circumstance. To that end, every client’s investment comfort is respected and we only provide recommendations that are suitable on an individualized basis.
As a fee-only firm, we are solely compensated by our clients. No sales incentives. No commissions. No hidden fees. No conflicts of interest. We believe full transparency is the only way to build and maintain trust.
Denewiler Capital Management is a values-first firm that holds its advisors to the highest degree of moral rectitude. The only thing that matters is earning your trust and keeping it.