Large Cap Dividend Growth
A long-only, total-return focused, large-cap core equity strategy invested exclusively in the stocks of companies with a history of consistent annual dividend increases to build a diversified, high-conviction portfolio of 25-35 stocks with a higher-than-average current yield and growing streams of income over time.
The objective of the Large Cap Dividend Growth strategy is to participate in up-markets and protect in down-markets in order to outperform its S&P 500 Index benchmark on a net of fees basis over a full market cycle and at lower levels of risk, as defined by standard deviation of returns.
A company’s dividend policy is tangible evidence of management’s confidence in future earnings growth.
The payment of a meaningful dividend, along with the expectation that it will be increased year after year, imposes an important discipline on management which makes them better allocators of shareholders’ capital and promotes more consistent earnings growth over time.