Philosophy
We are big believers in dividends. Our Portfolio Manager's primary objective is to generate a growing stream of income with the construction of a diversified, focused portfolio of individual stocks. The strategy is made up of companies with not only a current dividend, but more importantly, the belief of a growing dividend stream.Over time, dividends have made up a substantial portion of the total return of the S&P 500. This philosophy tends to result in clients owning quality companies with great management teams that continue to create long term value for shareholders. Many high quality dividend paying stocks have remained attractive in the current low yielding environment: as they may possess higher current yields and may have the ability to grow their dividends over time.
A Comprehensive Investment Process
The Portfolio Manager's believe intelligent dividend investing is much more than simply selecting stocks with high dividend yields or screening for past dividend increases. With an eye to a company’s future, the manager carefully considers three major variables when investing:
CURRENT DIVIDEND
• Dividend yield equal to or higher than S&P 500
• Current yield + dividend growth
• Potential for stock buybacks
CONSISTENCY OF DIVIDEND
• Strong balance sheet: low debt to equity ratios and high
interest coverage ratios
• Sustainable operating margins
• Credit spreads on underlying debt
GROWTH OF DIVIDEND
• Future sales and earnings growth
• High return on equity
• Management’s commitment to dividend growth
Growth of Dividend
There’s no guarantee that dividend paying stocks will return more than the overall stock market. Dividends are not guaranteed and are subject to change and elimination.
The PIM program is not designed for excessively traded or inactive accounts and is not appropriate for allinvestors. Please carefully review the Wells Fargo Advisors Financial Network advisory disclosuredocument for a full description of our services. The minimum account size for this program is $50,000.
Philosophy
Investing in fixed income securities has become increasingly difficult. This is when active management can add the most value.
Positioning
Rather than speculate on interest rates, we typically ladder portfolios in an attempt to reduce interest rate risk.
The team are strong believers in individual muni bonds in taxable accounts to achieve tax free income*.
We use a tactical bucket which can include ETFs to allow flexibility in managing duration.
Selection Process
We believe successful performance can be achieved through research and analysis of sectors and securities, rather than interest rate speculation.
*Income from municipal securities is generally free from federal taxes and state taxes for residents of theissuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income forsome investors may be subject to the federal Alternative Minimum Tax (AMT).
Rising rates, higher stock market volatility and inflation all challenge the traditional 60/40 portfolio. That's why many investors are exploring new sources of return with alternatives.
When you’re looking at alternatives, there is a broad universe to consider. We suggest you focus on strategies that seek to diversify or amplify.
Diversify
Bonds are under pressure in a rising rate, inflationary environment. Lower correlation alternative funds can offer another way to diversify stocks and seek attractive returns.
Amplify
Tap into private markets to seek higher returns over traditional stocks and bonds.
If it fits within your portfolio strategy, and overall financial plan, we can incorporate alternative strategies which include: Managed futures, Long/Short Funds, Real Estate, Merger Arbitrage, and Structured Solutions.
Because alternatives tend to behave differently than typical stock and bond investments, they can potentially help qualified investors mitigate risk and pursue difference sources of returns and opportunities in their portfolios.