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HCM Dividend Growth™ Portfolio

DISCIPLINED DIVIDEND INVESTING IN AN ATTEMPT TO MINIMIZE RISK

The HCM Dividend Growth™ portfolio views a companyHCm Dividend Growth Portfolio that has a consistent, proven dividend as one that has earned the right for further evaluation by our Investment Committee. Companies that have a history of consistent dividend payouts, balance sheet strength, favorable valuation metrics and sound corporate fundamentals may prove more resilient to downturns and are considered to have valuable upside potential. Historically, S&P 500 companies initiating or increasing dividends outperform those that are cutting or not paying dividends.* We believe investors should focus on companies that are maximizing and returning wealth to shareholders.

  • Diversification is important: sector variance versus the benchmark is routinely monitored and corrected as deemed necessary by our Investment Committee.
  • Favors companies with above average dividend yields**, strong cash flows, favorable valuation metrics and the ability to maintain and grow the dividend payout.
  • Focuses on a disciplined screening process that not only looks at the dividend payout and growth but also factors in capital appreciation potential.
  • An objective of low portfolio turnover helps foster greater tax efficiency.

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*Data based on Ned Davis Research, Inc. (as of 05/31/2016)   **As compared to the S&P 500 Index

Objective

  • Employ a strategy that seeks both capital appreciation and growing cash flow from dividends
  • A portfolio comprised of approximately 11 sectors and 30 securities
  • Identifies securities trading below their estimated fair value which also have either an uninterrupted history of dividend payments or above average forecasted dividend growth
  • Focus on low portfolio turnover, tax efficiency and a disciplined screening process

Emphasis on Transparency and Communication

  • Advisors Available for Consultation
  • Weekly Market Commentary
  • Monthly Articles Published Online
  • Quarterly Newsletter
  • Annual Client Letter

INVESTMENT PROCESS

1. Invest Based on the Holistic Company Picture
Our approach may begin with dividend payout and growth potential, but it certainly does not end there. We evaluate extensive quantitative and qualitative metrics to determine the highest probability of success for owning a given stock.


2. A Diversified Focus
The portfolio is comprised of approximately 30 stocks diversified across 11 sectors. If we find a given sector to be under- or over-performing, we may make discretionary moves to reflect the upside potential.


3. Continual Monitoring
We routinely monitor the portfolio, assessing market trends, performance and how micro and macro factors around the world may affect our positions.

INVESTMENT OBJECTIVE

• Investment Horizon: Full Market Cycle (typically three to seven years)
• Investment Minimum: $100,000
• Benchmark: S&P 500 Dividend Aristocrats
• Investment Objective: Growth and Income