Dividend Income

Dividend Income Equity Strategy

Overview: Matrix Dividend Income is a Large Cap equity strategy investing in common stocks and ADRs only. 

Investment Objective: Deliver higher current income with lower portfolio volatility than the S&P 500 Index. Relative to the S&P 500 Index, we strive to deliver modest capital appreciation and moderate downside protection.

Research Process: Both quantitative and qualitative research are employed by a team of 4 analysts to assess the stability and growth potential of a company’s dividend-paying capability as well as the current stock price valuation.

Buy Discipline: Identify mature, successful companies with strong financial characteristics, selling at attractive valuations relative to each company’s intrinsic value. Each stock must have a current yield in excess of 1.3x the S&P 500 Dividend Yield at the time of purchase.

Sell Discipline: Stocks are candidates for sale under one or more of the following conditions: the dividend is cut or reduced below that of the S&P 500 Yield; the outlook for future dividend growth deteriorates; the balance sheet materially weakens; the stock price rises above its intrinsic value price.

Risk Management: Monitor and assess the contribution to total portfolio risk relative to the goals of high current income, modest capital appreciation and moderate downside protection. Risk is evaluated at 4 levels – security, industry, sector and portfolio.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities and is not investment advice. All investments involve risk. Past performance is not an indication of future return.  Investment Advisory Services offered through Matrix Asset Advisors, Inc. a Registered Investment Adviser with the U.S. Securities & Exchange Commission. Registration does not imply a certain level of skill or training.