Dividend Growth Equity Strategy


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

Investment Objective: Outperform the S&P High Dividend Yield Aristocrats Index while delivering above-average current income

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 and growth potential

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 the S&P 500 Dividend Yield at the time of purchase. Stocks with high appreciation potential and strong dividend growth potential may also be buy candidates.

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 Dividend Yield; the outlook for future dividend growth deteriorates; the balance sheet materially weakens; the stock price rises above its intrinsic value price.

Opportunistic Overlay: Matrix maintains the flexibility to tilt the portfolio holdings to companies with strong earnings and dividend growth potential in accordance with its proprietary measure of market appreciation potential.

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