Our insight, developed over the past 30 years, has allowed us to focus on our core areas of investing. Dedication and discipline to our proprietary process are the backbone of our approach to select companies that:
Though we customize portfolios to meet individual client objectives and preferences, our 3-D method drives our stock selection. Most equity portfolios hold 35 dividend-generating stocks, across many industries and sectors. While strict sector weightings do not bind us, we are sensitive to diversification considerations. Although the majority of our companies are large cap, our portfolios also include small and midsize companies, providing further diversification. Portfolio turnover is generally low.
As we construct each portfolio, we have the flexibility (for those clients seeking higher current income) to purchase securities that provide attractive income yields, such as Master Limited Partnerships (MLPs). MLPs issue K-1s which, depending on the tax status of the portfolio, may defer tax liability. Our sell discipline is straightforward. We sell when we think fundamentals are likely to deteriorate, valuations are excessive, or we have a better investment opportunity. In addition, companies whose dividends fail to increase are subject to review for likely sale.
Our companies often deliver essential products and services, such as energy, healthcare, and consumer goods.
Our companies are proven industry leaders, with strong brands and steady growing global exposure.
Our companies demonstrate the ability to manage their business with consistent earnings growth in various economic cycles.