Portfolio Construction and Management

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 Core Strategies


Equity Strategy

Investments for our Equity Portfolios are selected across many industries and sectors, favoring companies in a growing global economy. While the majority are large companies, we also offer diversification among small and midsize companies. Each portfolio is constructed to help meet your objectives, which may include greater income, tax consideration, and risk tolerance.



North American Midstream Energy
Investments for our North American Midstream Energy Strategy are generally Midstream Energy MLPs and C Corps, offering the potential for greater diversification in an overall investment strategy than traditional stocks and bonds. When selecting securities, we assess the growth of the distributions, geographic footprint, credit quality, the fundamentals of the business and the attractiveness of the price of the security.

Equity Income Strategy

Investments for our Equity Income Portfolios are selected across many industries and sectors, including Master Limited Partnerships (MLPs) that offer investors the potential for higher income, distribution growth, and capital appreciation than traditional sources during environments with challenging yields. Each portfolio is constructed to help meet your objectives, which may include asset growth, greater income, tax considerations, and risk tolerance.



Environmental, Social, Governance (ESG) Strategy

ESG Investing weighs environmental, social, and governance factors alongside financial factors, reviewing a company’s operational standards as success indicators. Rapidly increasing in popularity, ESG criteria inform socially conscious investors of a company’s values, stewardship, relationship management, community impact, and other sustainability factors. Also useful in helping investors avoid practices that indicate negative impact and therefore greater risk, ESG investing enables clients to “put your money where your values are.”


Portfolio Construction and Management

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 Core Strategies


Equity Strategy

The DAC Equity Strategy institutional wrap SMA composite is a concentrated portfolio of high-quality, dividend growth stocks. It is designed for investors seeking long term growth of principal and increasing dividend income with reduced market volatility. The strategy employs DAC’s distinctive, dividend growth process, requiring a company to grow dividends by at least 10%, on average, for a minimum of 10 consecutive years. This process endeavors to identify high quality U.S. and international companies that offer a combination of earning profitability, cash flow sustainability, reasonable financial leverage and consistently increasing dividend payouts. These stocks tend to be large, well established companies with unique competitive advantages. While the majority of holdings are in large companies, the Equity Strategy also offers diversification among small and mid-size companies.


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North American Midstream Energy
The DAC North American Midstream Energy (“NAME”) Strategy institutional wrap SMA composite invests in high quality, publicly traded midstream energy Master Limited Partnerships (MLPs) and C Corporations that derive a majority of their earnings and cash flow from gathering, transporting and/or storing energy commodities. It is designed for investors seeking higher income than more traditional investments offer as well as portfolio diversification and the potential for long term, capital appreciation. Within our midstream universe, we seek companies that have historically consistent rising distributions, strong balance sheets and diversified, high quality, energy infrastructure assets. We focus on factors such as cash flow durability, geographic footprint, investment grade credit quality, attractive valuations and strategic plans to benefit from renewables and other advancements toward a clean energy economy.

Click Here To View Our North American Midstream Energy Strategy


Equity Income Strategy

The DAC Equity Income Strategy institutional wrap SMA composite is a growth and income portfolio of investments in dividend growth stocks as well as midstream energy companies and Master Limited Partnerships (MLPs). It is designed for investors seeking income and growth of principal through an equity investment with reduced market risk. DAC seeks to invest in high quality U.S. and foreign corporations and midstream energy investments that offer a combination of earning profitability, cash flow sustainability, reasonable financial leverage and consistently increasing dividend/distribution payouts. A majority of the holdings will be stocks of large, well established companies identified through DAC’s investment process requiring dividend growth of at least 10%, on average, for a minimum of 10 consecutive years. A balance of the remaining holdings are publicly traded midstream energy MLPs and C-Corporations that offer the opportunity for higher income and the ability to participate in the energy sector while historically demonstrating less volatility than the underlying commodity.


Click Here To View Our Equity Income Strategy


Sustainable Dividend Growth Strategy

Investments for our Equity Income Portfolios are selected across many industries and sectors, including Master Limited Partnerships (MLPs) that offer investors the potential for higher income, distribution growth, and capital appreciation than traditional sources during environments with challenging yields. Each portfolio is constructed to help meet your objectives, which may include asset growth, greater income, tax considerations, and risk tolerance.


Click Here To View Our Equity Income Strategy

Behind Our Strategies

  • Susie Wang

    “Getting the most of a dividend-driven investment strategy requires looking beyond stocks with the highest yields, which could be a value trap.   Additionally, dividend cuts are rarely a one-time phenomenon; dividend increase with sustainable power and long-term record are key.”

    Susie Wang
    CO-Chief Investment Officer, Director of Investment Strategies and Portfolio Manager
  • Tom Cameron

    "The market goes up and down over time.  Our clients’ dividends are going up every single year.  We make sure our clients continue to feel comfortable in a changing world."

    Tom Cameron
    Retired Chairman
  • James Haley

    "A company must grow its dividend consistently for a decade to be considered for our investment portfolios an must continue to raise its dividend to remain in our investible universe.Long-term performance. Increasing value. Income generation. That's the three-dimensional wealth management."

    James Haley
    Sr. Portfolio Manager - Private Client Group
  • C. Troy Shaver Jr.
     

    "We believe that dividends are the best indicator of the future price performance of a stock. Dividends are paid when there are attractive earnings. When dividends are paid consistently and at an increasing rate over the long-term, this is likely to exert a positive movement of price performance."

    C. Troy Shaver Jr.
    Chief Executive Officer, Co-Chief Investment Officer & Portfolio Manager

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