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 typically holds between 20 to 25 stocks. Each typically makes up 5% or less of the total portfolio. We seek to avoid concentrations and industry omissions associated with high-yield dividend and dividend-growth methodologies. Rebalancing usually occurs quarterly. Industry allocation is driven by both our process, as well as the manager’s 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.
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 and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment 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 are provided by Covestor, and are intended to serve as a general guide.
Not all transactions listed will appear in your account due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.