Seeking Dividend Power

The Equity Income strategy invests in companies with a solid operating history, ample cash flow, and a strong competitive position. Our focus on dividend power seeks investments with meaningful, sustainable free cash flow as an indicator of potential superior long-term growth.

This strategy is designed for investors with a total return objective who also seek dividend yields higher than those produced by the broad S&P 500 index. It generally holds 25-45 individual stocks.

How We Manage the Portfolio

Quality Bias

  • Solid balance sheet
  • Ample cash flow
  • Strong competitive position

Dividend Power Focus

  • Sustainable dividend yield
  • Dividend growth
  • Share repurchase

Value Discipline

  • Consistent valuation framework
  • Multivariate appraisal
  • Margin of safety
Empty
Click + to add content

Insights

Trends 2024

Davidson Investment Advisors provides insight into exciting, disruptive or otherwise new development...

Perspective & Commentary

  • Exploring the Risks of Top-Heavy Markets

    Concentration has become a defining feature of today's financial markets, with just a handful of companies surging in both value and influence, propelling the market to all-time highs.
    Read More
  • Now Might Be the Time to Extend Duration on Cash Holdings

    Generally, risk is thought of in terms of volatility or the possibility of loss. However, we often remind ourselves that opportunity cost is another potential hinderance to long-term investment result...
    Read More
  • Q3 2024 Commentary

    In Like a Bear, Out Like a Bull – Equity markets open the third quarter on a severe losing streak but finished at, or near, all-time highs.
    Read More
  • Q2 2024 Commentary

    The narrow, technology-driven market rally continues ... but a market where few gain and most tread water - or begin to sink - is less than ideal.
    Read More
  • Q1 2024 Commentary

    Despite higher interest rates, the economy and labor markets are doing better than most economists anticipated.
    Read More