High Dividend Equity
The High Dividend Equity strategy invests in equity securities of companies that pay relatively high dividends as measured by yields. We invest across a broad range of market capitalizations. The strategy is primarily designed for taxable investors seeking current income and/or who can benefit from the 15% federal income tax rate on qualified dividends and/or long term capital gains. The strategy may also be appropriate for some investors (taxable or tax exempt) seeking a different or complementary income stream, the principal of which can fluctuate greatly. The High Dividend strategy factors the likelihood that a company’s dividend rate is sustainable, and it does not rely upon forecasting a rate of dividend growth. Investments are diversified across sectors and industries in an effort to reduce the risk of concentrating investments only in industries with the highest dividend yields.
High Dividend Balanced
A balanced version of the High Dividend strategy incorporates high quality and short/intermediate duration portfolios of either taxable or tax-exempt bonds and can include some preferred stocks, Treasury Inflation Protected Securities and other income generating and portfolio/value protecting investments. We do not take much risk here because the returns of income generating portfolios do not ordinarily justify it. However, lack of risk should not be confused with lack of creativity. The bonds provide an anchor to windward for the portfolio and also income for clients that may need it.