Core Equity

Core Equity

We invest in large, well-established companies to provide long-term capital growth and attractive dividend income. Our Core Equity strategy is diversified, tax-efficient, low-turnover and risk-managed. We apply top-down analysis to develop our sector strategy dependent upon macro-economic trends and then use our proprietary screen and fundamental analysis to select companies exhibiting financial strength, historic and future earnings growth, market leadership and attractive valuation. Our disciplined security selection process identifies companies that are currently undervalued relative to expected long-term growth in earnings or enterprise value. We reduce risk through diligent company analysis and strategic sector allocation, coupled with a strict sell discipline.

We typically select companies exhibiting the following characteristics:

  • Market capitalization greater than $5 billion
  • Financial strength and stability, with debt-to-capital ratios generally below 40%
  • Consistent or accelerating growth in earnings and cash flow as well as growing dividend payouts
  • Identifiable catalyst for resurgence in market position and stock price
  • Currently undervalued relative to expected long-term growth in earnings or enterprise value
  • Anticipated investment horizon of three to five years

Worth Knowing

Dividends continue to account for more than 50 percent of total return from stocks since 1930.

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