EQUITY APPROACH

Ultimately, 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 price should follow suit, resulting in a total return that continually compounds over time.

Of the S&P 500, dividends have grown at an average rate of 6% per year since 1939. Over that same time period, more than 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 subscribe to the notion that U.S. GDP increases in the long run and the companies at the core of the S&P 500 are what drive it upward. As GDP grows, company earnings expand, which allows companies to payout more returns to investors through dividends. Furthermore, by focusing on companies that grow their dividends annually, a higher quality portfolio is achieved.

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.

The risk associated with investing can never fully be eliminated, but having clear goals allows you to sleep well at night.

Equity Philosophy logo
Fixed income philosophy logo

FIXED INCOME APPROACH

While we focus on the overall total return of your portfolio, we ensure that its construction meets your objectives and risk tolerance. As such, most of our accounts contain some allocation of fixed-income investments.

The focus is on three areas: interest rate risk, credit quality, and client liquidity demand. Each area has its own unique circumstances and challenges. Even still, all three can be combined to form a comprehensive portfolio. 

If equity exposure just isn’t something that fits your financial goals, we offer isolated fixed income & cash portfolio management.