"Those whose investment goal is total return for the long term should emphasize income, since they receive an even bigger benefit from the re-investment and compounding process."
 
  -Lowell Miller
 
 
Fields in Dutchess County Copyright Judy Glasel  
Rising Dividend Plus Strategy
The Rising Dividend Plus Strategy utilizes primarily established and seasoned mid- and large-capitalization companies with high financial strength that are likely to provide steadily rising earnings and dividends. The portfolio intends to participate in the long-term growth of the economy and the markets, with sensible and tolerable risk, through the inclusion of stocks with a history of paying dividends and a high probability of raising dividends in the future.
   
   
   
   
   
     
   
   
   
   
   
   
     
   
   
   
   
     
     
     
 
 
 
Investment Philosophy
Many studies, including our own, have shown that equities with rising dividends have consistently displayed excess performance relative to the broad market, with reduced volatility. And, over time, increases in dividends induce increases in the price of the equity producing those dividends.
 
Investment Objective
Our objective is to provide a stable and focused path to participate in the broad growth of equities with less risk than the market. The goal of the strategy is to outperform the Russell 1000. Safety during market declines is an additional objective, since risk control during declines is an major ingredient of long-term success.
 
Investment Strategy

We search for companies that serve a proven market, favoring enterprises with a repeating-business model that have a demonstrated track record of success. We always take the position that we are long-term investors in an ongoing business with an established marketplace and a history of sound management. We seek a history of dividend growth as evidence that growth is “real” and that management is willing to share the fruits of prosperity with investors. Companies are screened for excellent financial strength at the balance sheet and income statement level, and for conservative accounting practices. A premium is placed on reliability and certainty of future company success. Attractive holdings often have some protection against competition through market dominance, branding, geography, or intellectual property. Features such as growth of cash, stock buybacks, insider buying and overall insider holdings, consistency between revenue and earnings growth, financial reporting transparency, attractiveness as an acquisition, management frankness, sound corporate governance, and corporate community citizenship are important factors in our overall analysis.


Generally, we purchase stocks with the assumption that they may be held for decades, though we are also always trying to adapt the portfolio weightings to our forecast of economic conditions and changes in a company’s fundamental outlook. The portfolio may contain overweight positions in certain sectors or industries, changing weights in various capitalization sizes, and – as market conditions warrant – greater cash than would be typical of a long-only portfolio. In other words, the portfolio is also characterized by an element of sector rotation, size rotation, and transitional cash.