The Dividend Growth portfolio selects dividend-paying stocks that I believe will provide an attractive income over the next decade and beyond.
I believe a fundamental shift in investor preferences is occurring that favors income over growth. This is due, in part, to the aging of America’s Baby Boomers. At the same time, I see traditional income investments such as bonds and certificates of deposit currently offering unattractive yields that are quite low.
The Dividend Growth portfolio invests in shares of U.S. and international common stocks, real estate investment trusts (REITs), master limited partnerships (MLPs), and other income-producing securities. The primary objective of the portfolio is to potentially generate a high and growing income stream that will outpace inflation over time. The secondary objective is to generate long-term capital gains.
I select investments that meet one or both of the following criteria:
1. They offer a high current yield relative to competing investments.
2. They provide income from the investment that has a long history of rising over time, or I believe that it has potential to rise going forward.
My research attempts to gauge the safety of the income stream. I seek to avoid positions where the risks outweigh the potential for high yields.
The Dividend Growth portfolio is concentrated among asset classes that have a history of rising income payouts. Those include dividend-paying stocks, real estate investment trusts, and master limited partnerships. Other asset classes and investment vehicles (such as closed-end mutual funds or ETFs) may also be considered as valuations and market conditions warrant. My initial investment in a security typically will not exceed 5% of the total portfolio's value, though the allocation may rise above that threshold due to price movements over time.
I will sell holdings that no longer meet the strategy's criteria for dividend growth. Positions that I view as at risk of dividend reductions will be considered for sale. Additionally, positions that I view as overvalued or that no longer offer an attractive yield relative to alternatives will also be considered for sale.
I may buy a security that does not have a history of dividend payouts if my research leads me to believe that a payout will be initiated in the near future.
Past performance is no guarantee of future results.
Performance of the portfolio manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions, and broker commissions. Manager returns include trades that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More
Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying portfolio. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More
All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.
These securities are currently held in the portfolio manager's brokerage account. Holdings in the "Replicable Holdings" table currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.
These transactions were executed in the portfolio manager's brokerage account. Those marked as "Replicable Transactions" passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.