Dividend Value Portfolio

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The LOM Dividend Value Portfolio’s primary investment goals are to generate premium returns over full market cycles and protect the purchasing power and principal of the portfolio while providing high levels of current income through the purchase of attractively valued, higher yielding equities.  The portfolio has a minimum investment of $250,000.

This discretionary portfolio invests only US Dollar denominated equities that typically have the following characteristics:

  • Regular dividend payment
  • Large market capitalization (over $1 billion)
  • Financial strength: “A” rated or better
  • Dividend yield above S&P 500 average
  • Consistent cash flows to cover dividend payments

The portfolio will typically hold between 25 to 35 stocks, although this may fluctuate depending on market conditions.

Historical analysis shows that in periods of low interest rates, such as what we are seeing in the current market, higher dividend paying equities tend to outperform the broader market index. Furthermore, out performance of dividend-paying stocks can often be had with lower overall portfolio volatility as dividend stock investors tend to be less likely to sell their holding in a down market as these core investors are holding their positions for longer term income growth.

The Dividend Value strategy uses the same tools as our Global Growth strategy in combining our proprietary bottoms up quantitative process with our top down macroeconomic views. Our investment team takes long‐only positions in higher dividend‐paying stocks across the world’s major equity markets which typically yield 50% or more than the average stock and with superior dividend growth characteristics. The benchmark for the strategy’s performance is the Dow Jones Global Select Dividend Index (DJGSD).