Equity Income Strategy

The Equity Income strategy is designed to produce long-term appreciation, by combining current and growing dividends (which are cash payments from companies to the shareholders for owning their stock) with appreciating share prices. An equity-income investment’s dividend yield is typically a top characteristic considered in equity-income investing. The yield of the strategy is targeted to exceed the dividend yield of the S&P 500.

Equity Income Investing is often favored by moderately conservative investors and is often sought out by investors specifically seeking income from investments. When investing for income, Investors should Consider reinvestment programs that allow each investor to reinvest the dividends from the stocks or the funds that he/ she may choose. Dividend Income paying companies are usually “Value” Stocks that investors seek to keep long-term.

The strategy targets approximately 20 Predominantly Large Capitalization Stocks while including the ability to add Mid Capitalization stocks if we see fit.  The strategy will seek broad diversification across most economic sectors; A top-down investment approach to these broad sectors will be taken to determine the desired sector exposure of the strategy. A bottom-up approach to stock selection will be applied thereafter.

 ASSET CLASS RISK CONSIDERATIONS

Equities: Investors should be willing and able to assume the risk of equity investing. The Value of a client’s portfolio changes and can be affected by changes in interest rates, general market conditions and other political, social and economic developments as well as specific matters relating to the companies in which the strategy has invested. Companies paying dividends can reduce or cut payouts at any time.

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representatives of the U.S. stock market.