Retirement Income

 

The Retirement Income Composite is a concentrated portfolio invested in 10 to 20 Large-Cap equity securities with a market capitalization greater than about $3.0 billion and inclusion in the S&P 500 or Russell 1000 index or an equivalent, nationally recognized Large-Cap index and Exchange Traded Funds (ETFs) with a minimum market capitalization of $350 million.

 

All these holdings have higher than average dividend yields and cash flows that are strong enough to sustain their payouts at current and higher levels.

Investment Process

STEP 1

Idea Generation

Focusing on stocks and ETFs with strong and sustainable dividends and low volatility

 

Screening Process:

  • ETFs with $350 million in market capitalization and at least 3 years of trading history

  • Stocks must be a member of a Large-Cap index

 

Identifies acceleration and improvement in:

  • Free cash flow

  • Revenue

  • Earnings

  • Profit margins

  • Relative strength and momentum

 

STEP 2

Grunt Work

Exhaustive research money managers are paid to perform

STEP 3

Portfolio Construction

Fundamental Research: Focuses on cash flow to support dividends, earnings quality, earnings estimate revisions, debt exposure, and history of rising dividends

 

Technical Research: Explores trend lines and preference given to those who exhibit less volatility, and pricing patterns

Range of 15-20 positions selected for internally funded sustainable growth, superior technical characteristics, and are identified as low volatility and providing high income