Equity Strategies That Work

Equity Strategies

Our balanced approach to managing your portfolio yields results in the form of:

CAPITAL APPRECIATION (GROWTH AND PROTECTION) & CASH FLOW (INCOME)

To anyone planning for retirement or simply for their future, these outcomes sound particularly appealing. But surely they’re too good to be true, right? Has someone actually found a way to provide both income for monthly living expenses and potential capital appreciation to keep up with inflation, regardless of what’s happening in the market?

Yes.

At least that’s what our clients’ quarterly performance reports and several reporting agencies say. We believe this consistent year-over-year performance is directly attributable to our two main investment strategies: the Brookmont Dividend Equity Strategy and the Brookmont Managed ETF Strategy.
 

The Brookmont Dividend Equity Strategy:

First, a little background on dividends. They play a significant role in the markets. They’ve provided 40% of stock market returns in the last 60 years, and have continued to increase through 2010. Their average yield is twice the S&P 500. And relatively speaking, they’re tax efficient. These reasons and more make them an attractive option for several types of portfolios. Is this strategy right for you?

So with the focus on the two main objectives of cash flow and appreciation, we begin implementing our signature investment strategy. After analyzing the current economy and market cycle, we decide which areas offer the highest earnings growth potential. Our experienced portfolio manager begins filtering and screening the eligible holdings, reducing them down to 35-40 small-, mid- and large-cap names that offer a minimum 3% dividend. Then the investing begins.

We ultimately purchase high-quality, individual stocks (A- average rating) that:

  • yield exceptional dividends and the potential for long-term capital gains
  • offer attractive valuations with below-market risk profiles
  • represent all ten economic sectors as defined by the S&P 500 Index

We don’t invest in large sector bets or concentrate on individual names, and we think this is what makes this strategy so unique. And more importantly, successful.
 

The Brookmont Managed ETF Strategy:

 

An Exchange Traded Fund (ETF) is a security that tracks an index, but trades like a stock on an exchange. ETFs experience daily price changes as they’re bought and sold and so require an active approach.

Our ETF strategy builds your portfolio by focusing on:

  • equity and fixed income Exchange Traded Funds (managed by Blackstone and The Vanguard Group) that are allocated by a client’s risk tolerance and time horizon
  • a mix of distinct asset allocations (equity holdings, fixed income holdings, real estate investment trusts) that include a conservative, balanced, and aggressive weighting

As your portfolio manager, the “manage” part of that title is crucial. We revisit and rebalance it on a quarterly basis to prevent allocation drift and to assure your investment goals are still in sight. Contact an Investment Adviser now.