Dividend Equity Strategy
The strategy seeks a high level of current income and long-term growth of income and capital through a high-quality portfolio of large-cap, dividend-paying equity securities. The strategy employs fundamental input from a deeply experienced equity research team through a disciplined and repeatable process focused on elements supported by theory and evidence.
The strategy’s unique approach results in a portfolio of high-quality companies with sustainable competitive advantages and high returns on capital that should pay reliable, growing dividends at reasonable valuations.
Seeks current income and capital appreciation
Balances dividend yield and dividend growth
Prioritizes risk management
Invests in high-quality companies with:
- Sustainable competitive advantages
- High returns on capital
- Reliable and growing dividends
- Reasonable valuations
Dividend paying stocks tend to outperform over time with less risk
Companies with high barriers to entry sustain excess profits over time that promote dividend growth
Traditional dividend strategies often have unintentional embedded exposures
Avoid large exposures that are not supported by strong investment rationale
The portfolio managers work directly with industry specific analysts to construct the portfolio. The iterative process balances top-down portfolio risk management with bottom-up security selection. Formal team portfolio reviews and daily communication guide trading activity within the portfolio based on, but not limited to, risk parameters, valuations, and overall business prospects. Portfolio guidelines include the following:
Sector exposures generally +/- 2% versus broad market (S&P 500)
Typically 65-90 holdings
At least 90% of the portfolio invested in S&P 500 securities
Max position size of 4% at purchase and 5% at market value
Top 10 holdings typically 20% to 30% of portfolio
Turnover typically 10% to 25%
Holdings subject to change without notice.
As of 6/30/2023
Assets Under Management
U.S. Dividend Focus Equity
Austin R. Kummer, CFA
Vice President, Senior Portfolio Manager
Career Summary Fort Washington Investment Advisors, Inc.
Education BBA - Ohio University
MBA - Xavier University