DIVIDEND INCOME: Value style investment focusing on dividends, creating a cash flow centric portfolio.
The Proxy DIVIDEND INCOME portfolio is designed to be a cash flow driven portfolio, with a targeted yield of 2x that of the S&P 500 index. Dividends from equity investments have been a large component of total return over time. The objective is twofold. Dividend Income, achieved from the cash flow paid out from the stock investments & Capital Appreciation, achieved by the increase in price of the stock holdings. Each of the portfolio’s holdings will have to pay a dividend. The portfolio manager selects fundamentally solid business from the value school of investing. This portfolio should be considered by investors with a high or moderate risk investment profile.