Equity Income

Our Philosophy

How to Invest

The strategy seeks to provide a high and growing current dividend yield while balancing capital preservation with growth of capital.

We recognize that certain investors require a steady stream of income with lower levels of risk to meet their needs. Low interest rates over many years have made those benefits difficult to find. We offer to investors our equity-based income generating investment strategy, with a track record starting in 2005. We believe that stable corporate earnings lead to better long-term returns for investors. We seek companies whose skilled management has demonstrated the ability to deliver consistent earnings year-over-year and shown a clear commitment to shareholder payouts. We have built concentrated portfolios that emphasize the balance between dividend growth, earnings stability and risk management.

Our Process

Our process is designed to identify consistent and sustainable dividend growth. We seek companies that have a demonstrated history of growing earnings, compounding value and in turn rewarding shareholders with capital returns in the form of dividends. We then build a concentrated portfolio of thoroughly researched investments that is diversified across sectors using correlation analysis.

Finding Consistent Growers
Our Risk Adjusted Growth (RAG) model analyzes financial metrics over different time horizons and assesses the degree to which those metrics vary from each other during that period. Companies with meaningful variations, or volatility, are excluded, and the most consistent earnings and dividend growth performers are selected for next steps in the process.

Understanding Key Drivers
The next step is an in-depth fundamental analysis where we assess the most important quantitative and qualitative aspects of an investment. We review historical and competitive data to understand a company’s key revenue and cost drivers, as well as the ways in which it deploys capital to compound shareholder value. Beyond quantitative measures, we assess management capability, accessibility, whether they treat shareholders like owners, how transparent they are, and whether or not they have a clear plan for future growth.

Dividend level and strength
Once we have identified a history of consistent earnings and dividend growth as well as management commitment and capability, we further demand a demonstrated prudence and strength of balance sheet. We do not want to be paid today with tomorrow’s borrowed dollars. We also emphasize qualified dividends over ordinary dividends because of the favorable tax treatment.

How to Invest

Separate Accounts


Currently Available on Major Custodial Platforms.