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.

Strategy Overview:

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 Equity Commentary (PDF)

Dividend Equity Fact Sheet (PDF)

Large Cap / Dividend Income

STYLE

S&P 500 Index

BENCHMARK

January 1, 2016

INCEPTION DATE

$4.5 Billion

ASSETS UNDER MANAGEMENT

As of 03/31/2025

US Dividend Focus Equity

EVESTMENT UNIVERSE

Separate Account

Mutual Fund

Exchange Traded Fund

INVESTMENT VEHICLES

Philosophy

The team believes:

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

Portfolio Construction

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: