DAC Insights: Asset AND Income Growth

Dividend Assets Capital (“DAC”) was built on a pioneering, 40+ year legacy of dividend growth investing that we call the 3-D process… “Double-digit, Dividend Growth for a Decade or More”. We believe companies that declare dividends and increase those dividends substantially and consistently, year after year, tend to perform uncommonly well for reasons beyond dividends alone.

Over the years, we have mastered the process of combining high quality companies paying sustainable and growing dividends into portfolios that provide at least two significant benefits for investors… long-term capital appreciation AND portfolio income appreciation. Most conversations about portfolio results focus on total return. We believe that growth of portfolio income is an equally important investment outcome, but it is underappreciated and often simply overlooked. Examining results from the DAC Equity strategy over the last decade demonstrates how both outcomes can be achieved from a single investment strategy. The mountain chart below illustrates how a $500,000 investment in the representative DAC Equity portfolio on 3/31/2014 grew to $1,346,914 ($1,288,885 net of DAC’s management fee) over 10 years. The bar chart shows how the annual portfolio income grew from $9,046 to $26,847 over that same period… an average annual growth rate of 12.1%.

The information contained herein has been compiled from sources Dividend Assets Capital, LLC (“DAC”) believes to be reliable, but no warranty, expressed or implied, is being made that the information is complete or accurate. DAC makes no guarantee that the objectives associated with a particular strategy will be achieved, will equal past performance, or will be profitable. Different types of securities and/or strategies involve varying degrees of risk and have the potential for profit or loss.

Historical performance results generally do not reflect the deduction of transaction and/or custodial charges. The “Pure Gross of Fees” performance results shown in this hypothetical illustration are calculated gross of all fees . The “Net of Fees” value reflects the deduction of DAC’s investment management fee charged to the “Representative Portfolio” for the DAC Equity strategy composite (.45% (45 Bps) annually). The inclusion of transaction, custodial and/or advisory fees as well as other expenses will reduce actual returns.

Dividend Assets Capital, LLC is a Registered Investment Adviser with the U.S. Securities and Exchange Commission. Registration does not imply any certain level of skill or training. You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses before investing. The Firm’s Investment Adviser Brochure, Form ADV Part 2, contains this and other information about the Firm, and should be read carefully before investing. You may obtain a current copy of DAC’s Form ADV Part 2 by visiting our website at https://dacapitalsc.com/, emailing info@DACapitalSC.com, or by calling us at (866) 348-4769. Additional information about Dividend Assets Capital, LLC is also available on the United States Securities and Exchange Commission’s website at www.adviserinfo.sec.gov. You may search this site using a unique identifying number known as a CRD. DAC’s CRD is 129973.


Dividend Assts Capital, LLC is an independent, employee-owned wealth advisor specializing in high quality companies with a history of consistently increasing dividends. Built on a pioneering legacy, our goal is straightforward; achieve our clients desired outcomes through investments that provide sustainable and rising income with long-term capital appreciation. We partner with successful families, advisors and institutions delivering tailored services that adhere to fiduciary principles to provide…

Clarity: A transparent and understandable approach to portfolio management.

Simplicity: We believe dividends are the best indicator of the future price performance of a stock.

Devotion: We build confidence through a disciplined process and strong devotion to our investment philosophy and clients.