Dividend Growth

The Archer Dividend Growth portfolio holds inexpensive, high-quality US Large Cap stocks with high dividend growth rates. By focusing on dividend growth rather than just yield or consistency, we are able to construct a portfolio with better fundamental characteristics than the available dividend-oriented ETFs and mutual funds. A turnover rate lower than other stock strategies also helps make this a strong candidate for investing with a taxable account.

At Alhambra, we think that’s a smarter way to construct a dividend portfolio. We also consider other fundamental criteria:

• EBITDA growth rates (3-year and 5-year)
• Near term (current FY) and long term earnings growth potential
• Gross profit margins
• Operating margins
• Valuations metrics like Price-to-Sales and Price-to-Earnings
• Return on equity
• Return on invested capital
• Payout ratio

The result is a portfolio with superior characteristics versus the popular alternatives.

Yes, you can improve on the traditional approaches to dividend investing. Yes, fundamental analysis beyond just dividends can add substantial value. No, you don’t have to sacrifice growth for income. We know because we’ve done it for you.

Margarita V. Fernandez, senior vice president at Alhambra Investments is the portfolio manager of the Archer Dividend Growth Portfolio. Margie is a veteran of the financial services industry with 40 years of portfolio management experience.