Income Builder Portfolio
Separately Managed Account
The WCA Income Builder Portfolio seeks to invest in companies with rising dividends at attractive valuations. The portfolio uses a fixed income ladder to seek to manage volatility and provide a steady stream of income.
Combining the flexibility of a laddered bond portfolio with rising dividends can provide a hedge against inflation, and can be an appropriate addition to a retirement income portfolio. We view a well-constructed portfolio as a triangle. At the base of the triangle are high-quality bonds. Equity investments are then added to provide higher potential return.
60% RISING DIVIDEND EQUITY
We focus our attention on the 1,000 largest, actively traded companies listed on exchanges in the United States. From this starting point, we seek:
STEADILY RISING DIVIDENDS: Portfolio companies must have demonstrated at least five consecutive years of dividend increases. Failure to raise the dividend is grounds for removal from the portfolio.
CONSISTENCY: The watchword for the WCA Income Builder Portfolio strategy is consistency. Therefore, the selection process favors companies with strong balance sheets and consistent earnings that are capable of sustained growth of shareholder capital and income.
We believe that chasing yield without regard for capital growth is folly. Therefore, this portfolio seeks companies we believe are capable of growing both the dividend and shareholder capital over time.
40% INVESTMENT-GRADE CORPORATE BONDS
The Laddered Bond component seeks to provide a stream of income while mitigating risk. Bonds are actively chosen and monitored by Washington Crossing Advisors based upon a fundamental evaluation of balance sheet quality, trends in cash flow, interest coverage, and liquidity.
A laddered bond portfolio allows a systematic way of investing a portfolio without constantly guessing about the direction of interest rates. It also allows the income and yield of the portfolio to gradually adapt to a changing interest rate environment and maintains consistency in the average maturity.
Please see the attached PDF for a new Rising Dividend Portfolio Dividend Behavior piece. This document highlights Dividend Per Share Growth, Annualized Dividends, and Payout Ratios, among other portfolio statistics.
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SimilaritiesIn both 1999 and today, the stock market exhibits strong momentum and a herd mentality, particularly among the largest, most valuable companies. This is evidenced by the significant valuation differential
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From last October’s lows, the total value of stocks in the United States is up another $10 trillion. Sitting near $55 trillion, the U.S. stock market is now within a
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Imagine you have two options for investing your savings: keeping it in a piggy bank at home or investing in a local business. If the business can use your money
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After an extended period of historically low interest rates, income-focused bond investors have finally found relief as interest rates have risen to levels not seen since late 2007 (see Chart
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Imagine this: The U.S. economy had a stellar year last year, outperforming Europe with a robust 2.5% growth rate. This is a far better performance than almost anyone imagined. It
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At Washington Crossing Advisors (WCA), we go to great lengths describing the high quality businesses selected in our Rising Dividend and Victory equity portfolios. We believe in buying quality companies
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17 November 2023 I Beaverton, OR
The board of directors of Nike, Inc. (NYSE: NKE) has declared a regular quarterly dividend of $0.37 per common share, an increase of approximately 9% from the
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8 November 2023 I Roseland, NJ
The board of directors of ADP (Nasdaq: ADP) has declared a regular quarterly dividend of $1.40 per common share, an increase of approximately 12% from the previous
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7 November 2023 I St. Louis, MO
The board of directors of Emerson (NYSE: EMR) has declared a regular quarterly dividend of $0.525 per common share, an increase of approximately 1% from the
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Page through any investment brochure, factsheet, or presentation, and you’ll eventually get to the disclosure language claiming “All investing involves risk.” For fixed income investors, credit spreads over risk-free U.S.
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Many managers use textbook financial ratios such as return on equity, debt to equity, and earnings per share variability to evaluate the quality and value of a company. However, these
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Please see important disclosures.
