"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  
Income-Equity Strategy
The Income-Equity Strategy is a diversified dividend-growth portfolio that invests in financially strong companies from across the broad market with high current dividends and a strong probability of increasing their dividends. Investors seeking solid total returns comprised of both income and growth, high current income that increases every year and a lower federal tax rate on qualified dividends will find this strategy attractive. In addition, the portfolio's high-income level supports prices during market declines while the growth of income mitigates the effects of inflation on future purchasing power.
     
   
     
   
   
   
   
     
   
   
   
   
   
     
   
   
   
   
     
   
     
 
 
Investment Philosophy
We have found that financially strong companies with rising dividends offer the most consistent performance as well as the highest added value. Over the long-term, dividend-paying stocks outperform non-dividend paying stocks and companies that increase their dividends perform the best. Academic studies have shown the percentage that reinvested dividends contribute to total return grows over time. Stock prices may fluctuate but dividends are always positive, and, over time, increases in dividends induce increases in the price of the equity generating those dividends. In addition, studies have shown that dividend increases are the best signal from corporate management regarding the future prospects of a company.
Unlike bonds (static income), equities with growth of income help protect investors from the ravages of inflation. Even a "tame" inflation rate of 2.5% can destroy almost two thirds of an investor's purchasing power over 20 years.
 
Investment Objective
Our investment objective is to provide high current income, growth of income and growth of principal as conservatively as possible while investing in the equity markets. When combined with other managers and/or index products, we seek to add value by lowering volatility, raising the income level and enhancing total return.
 
Investment Strategy
We invest in conservative stocks with solid financial strength and moderately steady growth. Our holdings have consistent and reliable businesses, a long history of high and rising dividends that we project will continue to grow. We focus on low cost producers, niche companies, and companies with outstanding consistency in their earnings and dividends. This ensures that return expectations are realistic and achievable. Stocks are sold when: companies fail to increase dividends with no excuse, there is a fundamental deterioration, a stock exhibits extended overvaluation, there is a negative impact from a regulatory decision or, we need to make room for a more attractive investment.