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Investment Adviser
TIM
Timberline Investment Management
- Education University or Portland; Washington State University
- Qualifications MBA, BA, CFA
- Investment Experience Over 25 years
- Founded 2005
Dividend and Growth
Based on numerous studies, dividend stock strategies have a historical record of outperforming the S&P 500 with greater consistency and less volatility. Over time, Timberline believes, but cannot guarantee, these positive qualities will persist. With the Timberline Dividend & Growth strategy, Timberline seeks to add value to this historical strength with a diversified portfolio of dividend paying stocks that is backed by depth of manager experience and an effective decision making process.
Stock selection decisions (buy/sell/weighting) are driven by an equal weighted four-factor scoring system. Valuation, earnings outlook, key issues and technical analysis are independently scored on a long-term time horizon basis. Total scores determine if a holding is sold or bought and what its portfolio weighting is if bought. This scoring takes place on a regular basis (quarterly) to provide a systematic review of holdings, a systematic search for new ideas, and to reinvest accumulated dividends appropriately. Scoring will take place outside of the quarterly review in the event of a major event or announcement that affects a single stock, numerous stocks, or the entire holdings list.
To provide diversified opportunities, the investment process begins with a screening of each industry sector for the highest third names in dividend yield (market cap $2billion or greater, 1% minimum yield). From this diversified list, Timberline then executes its four-factor scoring system with no favor to yield and an emphasis on finding a diversified set of stocks with solid long-term total return potential. In the end, the strategy looks to capture the attractive historical strength of dividend stocks with attractive long-term fundamental potential.
The Timberline Dividend & Growth strategy seeks benefits from diversified choices in its screening and in its final stock selections by limiting individual holding range of 2% minimum to 5% maximum of portfolio value (50 to 20 holdings; 35 has been a typical number of holdings). This diversification method allows the strategy to avoid concentrations and industry omissions associated with high-yield dividend and dividend-growth methodologies. Rebalancing occurs with the quarterly four-factor review process. Industry allocation is driven by both the four-factor process and manager discretion.
As mentioned, the four-factor scoring process drives the buy/sell/weighting decisions. Stocks that fail to achieve a minimum score are sold.
Since inception, the all stocks ever held in the Timberline Dividend & Growth strategy have paid a dividend.
Model commentary
Gregg Giboney outlines his approach to dividend stock investing
18 April 2013
Dividend stocks have outperformed the S&P 500 Index, says Giboney.
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