Q – Why invest only in dividend paying stocks?

A – Dividend paying stocks must generate real earnings for payouts. They also have lower volatility and require more disciplined management that prevents unwise capital expenditures.

Q - Why is the strategy considered to be quantitative?

A – The strategy uses fundamental based data to screen the investment universe for candidates in the portfolio.  The portfolio itself is modeled and constructed using a 68 factor risk model. The result is a risk controlled portfolio with the desired characteristics and diversification.

Q – What is Quantitative Validation?

A – Quantitative Validation is a review of a stock specifically related to the dividend and earnings screens. The purpose is to verify the fundamental screen data and incorporate any current information which could affect the screen results.

Q – What is the expected dividend yield of the portfolio?

A – The dividend yield will change with market conditions. The portfolio targets a dividend yield that is roughly twice that of the S&P 500.

Q – How much of this portfolio will be allocated to international versus U.S. securities?

A – The allocation will be affected by how many international versus U.S. stocks pass the quantitative screens.  The range is designed to be from 30% to 50% international with 40% being a neutral target.

Q – How does this strategy fit my asset allocation?

A – While this strategy allows for large, mid and small cap stocks, it is predominately large cap and could be considered a large cap core allocation. The dividend income aspect reduces volatility lowering the overall risk of the portfolio.