Sizemore Capital believes that a fundamental shift in investor preferences–due, among other factors, to the aging of America’s Baby Boomers–is occurring that favors income over growth. At the same time, traditional income investments such as bonds and certificates of deposit offer unattractive yields near all-time lows. We believe that dividend-paying stocks represent an attractive income alternative over the next decade and beyond.
The model invests in the shares of U.S. and international common stocks, real estate investment trusts, master limited partnerships and other income-producing securities. The primary objective is the generation of a high and growing income stream that will outpace inflation over time, with a secondary objective of long-term capital gains.
Sizemore Capital selects investments that meet one or both of the following criteria:
- Offers a high current yield relative to competing investments.
- The income from the investment should have a long history of rising over time, or the manager should reasonably expect the yield to rise going forward.
Sizemore Capital places emphasis on the safety of the income stream. The manager seeks to avoid high yields that might be at risk of reduction.
Download the Dividend Growth Portfolio Brochure here.
The portfolio is concentrated among asset classes with a history of rising income payouts, such as dividend-paying stocks, real estate investment trusts, and master limited partnerships. Other asset classes and investment vehicles (such as closed-end mutual funds or ETFs) may also be considered as valuations and market conditions warrant. The initial investment in a security will not exceed 5% of the portfolio’s value, though the allocation may rise above that threshold due to price movements over time.
The manager may buy a security that does not have a history of dividend/distribution payouts if the manager reasonably believes that a payout will be initiated in the near future.