Broker Check


| April 08, 2021

It was about ten years ago, before brand-name sponsors sensationalized “factor-investing”, and it was customary for clients to seek strategies that could not just own stocks, but earn attractive yields (income) from them. In those days, 2.75% was a decent yield (compare that today with S&P500’s average yield of 1.47%). 

The investment premise on which we built the “DivAndMo” stock model was to own stocks paying higher-than-usual dividends (typically above the 10-yr Treasury Bond), reduce overall volatility and track prices at or around the performance of the S&P500.  

With a track record dating back to March 28, 2011, we see a tactically-managed stock portfolio paying substantial dividends, holding its own place versus more aggressive portfolios. Since September of 2019, the model generated average annualized returns in the ‘teens. Recovering from the Covid-induced market drop, the DivAndMo model consolidated strength and broke upward again into a positive trend. 

Our approach to tactical-risk management has helped us develop insights into current markets as investing cycles turn. As a result of our stock selection process, the DivAndMo model has presently rotated into mostly stocks in the Financial, Consumer Discretionary and Materials business sectors. 

When markets change, so will our asset allocations. ‘Trend-following, rules-based, systematically applied….