Historically, dividends have accounted for more than one-third of investors’ total returns over longer investment horizons. However, analysis proves that investing in companies that pay the highest relative yields has often been disappointing. The fact is that while investing in dividend-paying stocks makes sense, investing in companies with the ability to increase their dividends makes even more sense. Dividends support transparency into corporate earnings. Cash paid out in the form of a dividend is definite, while accounting earnings are often subject to interpretation. Our opinion is an increasing dividend is an indication of corporate health and management’s confidence in the future growth prospects of the business.
The 60 West Advisors Dividend Growth Strategy is a total return approach designed to provide investors with a base of increasing dividend income accompanied by long-term capital growth through investments in a diversified portfolio of equities with growing dividends. Our investment approach focuses on providing protection during down market environments and capturing reasonable upside participation during up markets environments.