Dividend Aristocrats – Grow Income Over Time

  • Durig Capital’s newest exciting investment solution is now available.
  • Blue Chip Peace of Mind with High Dividends.
  • Durig’s Dividend Aristocrats Portfolio targets the stock of only the highest dividend yields of blue-chip companies with a history of maintaining consistent growth of dividends. 

The Dividend Aristocrats Portfolio, Durig Capital’s newest exciting investment solution is now open for investment.  This portfolio strategy targets the “cream of the crop” among a diversity of blue-chip companies listed on the S&P 500, seeking the companies with only the highest yields and have a stable history of increasing dividends.

Income Growth Over Time

Durig’s Dividend Aristocrats Portfolio Strategy tends to focus more on the latter consideration of historical increases in dividends, for if the companies do not increase their dividend over the course of the year, the stock is dropped from the portfolio, and the next highest dividend yielding blue chip stock (with a history of increasing dividends) is selected for investment.  In this manner, Durig Capital believes it is able to capture the growing dividends of established blue-chip companies with relative consistency, and should equate to increased dividend income over time.

Historically, the majority of blue chip stocks pay dividends to their shareholders and over time generally raise dividends to reward shareholders and increase stock value. Sustained increases in dividend payouts can help to insulate shareholders from some of the negative impacts of inflation. With time, investors may benefit from these dividend payments and generate stable, and even growing portfolio income.

Blue Chip Peace of Mind

Because the stocks of the companies in this strategy are all considered to be “blue chip” companies, there is an additional perceived layer of relative security beyond that of the stock of a lesser known company.

Most investors are familiar with the idea that blue-chip stocks have stable earnings. In market downturns or periods of high market volatility such as what we see today, investors often look to these as somewhat as a safe haven for their reliability.

Ben Kirby, a Money Manager at Thornburg Investment Management, explains how  he weathers significant bouts of market volatility and downturns in a recent interview with CNBC:

To hedge against a possible recession in the next two years, Kirby is sticking to stocks that pay investors while they hide out:

“I like dividend-paying equities. To me they’re one of the most attractive asset classes today, because hands you win, and tails you don’t lose too much,” Kirby said. “If stocks keep going up, your dividend-paying stocks will participate in that and … if stocks decline and we do go into a recession, then your dividend-paying equities can be defensive.”

Blue-chip companies can offer relative security in times of slowing growth due to their astute management teams and their capacity to generate consistent earnings. In bear markets, investors often needn’t worry about their blue-chip investments as, historically they have proven their ability to recover.

Blue-chips also tend to have fundamentally strong balance sheets, cash flows, scalable and effective business models with consistent growth over time. Many consider blue-chip stocks to be more secure than other investment types, as investors can turn to their blue-chip stock investments for steady growth over time while receiving consistent and often growing dividend payments.

Sample of  Blue-Chips in Durig’s Dividend Aristocrats Portfolio

Now we examine a few of the blue-chip stocks contained in the portfolio, considering the historical chart of the stock and historical dividends paid to shareholders.

Symbol: PEP (PepsiCo)

Note how not only have these companies (above & below) seen consistent growth over time with respect to their stock price, but have also consistently increased the dividends paid out to investors over the years.

Symbol: CVX (Chevron Corporation)

 

Improved Diversification

A key difference with Durig’s Dividend Aristocrats Portfolio is that it contains more than twice the number blue chip stocks than Durig’s other high yielding blue-chip portfolio strategies (Dogs of the Dow, Dogs of the S&P 500).  The larger number of blue chip stocks improves overall portfolio diversification among issuers and industries, and due to the equal weighting employed, exposure to any one issuer or industry is limited. This way if one of the positions fails to perform in the manner expected, there are still a large diversity of blue-chip stock positions in the portfolio operating in different industries that should still perform as expected.

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Dividend Aristocrats

  • Annual Cost: 0.50% or 1/8 of a percent per quarter.
  • Average Dividend Yield About: 3.80%
  • Minimum Investments: $40,000
  • Minimum Holding Period: None
  • Custodian: TD Ameritrade Institutional

Summary

In essence, Durig’s Dividend Aristocrats Portfolio targets the stock of only the highest dividend yields of blue-chip companies with a history of maintaining consistent growth of dividends.  If the dividend is cut or does not increase over the course of the year, it is replaced. In this way, Durig Capital believes it has created a portfolio that should produce consistent growth and dividend income over time.  Additionally, blue chip companies are very large, established firms with a strong track record of consistent growth and stable earnings, and historically, have consistently proven their ability to recover from market downturns.

For those seeking income stability and peace of mind in an uncertain world, Durig’s Dividend Aristocrats Portfolio may offer investors a potential solution with professional management, all at a very low cost.

To learn more, call us at (971) 732-5121, or email us at info@durig.com.

Durig Capital has several high yield portfolios available, click below to learn more.

Fixed Income 2 – FX2
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Dividend Aristocrats
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Diversified Blue Chip Stocks with Dividends
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Dogs of The Dow
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Dogs of The S&P 500
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Blue Chip Stocks with Dividends
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Disclaimer: Past performance is no indication of future success. Any market data or performance shown is this publication is as of 8-20-19. * The Primary Benchmark used is S&P 500 TR Idx. The high yield strategies presented in this review by Durig Capital may not be suitable for all investors.  This is not investment advice from Durig Capital, nor a specific recommendation to buy or sell securities. If you have any questions or concerns about its suitability for your personal investment, you should seek specific investment advice from a registered professional before making an investment decision.

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Dividend Aristocrats

The stated goal for this strategy is to introduce investors to the high quality dividends of blue-chip equity, all contained within a well diversified, individualized, and very low cost portfolio, with lower volatility. Over time, this strategy is designed to produce both growth of principal while also gradually growing tax advantaged dividend income.
http://aristocrats1.com

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