Dividend Equity - Focus Asset Management : Focus Asset Management

Why Invest in Dividend Equity?

Dividend-paying stocks provide a way for investors to continue to generate a return in volatile market periods, when capital appreciation is hard to achieve. Dividends can also help protect against inflation as they normally grow over time and are a tax efficient form of income. Dividend-paying stocks tend to be less volatile than non-dividend-paying stocks due to the stability of the company’s business model that has the ability to pay dividends. A portfolio that produces a steady and growing stream of dividends, especially when reinvested to take advantage of the power of compounding, can help build substantial wealth over time.

Dividend Equity Investment Attributes

We look for four key characteristics in our dividend paying investments.

Valuation

The most critical factor in identifying any equity investment, we look for companies valued well below their intrinsic value. We believe a company’s free cash flow generation ability is key to a successful investment. We adhere to strict valuation discipline on both entering and exiting our investments.

Dividend Yield

We look for organizations with an attractive absolute yield that is supported by a sustainable payout ratio and look for companies that have the ability to produce strong dividend growth over time.

Quality

Quality is fluid and multi-faceted. Attractive attributes include barriers to entry, competitive advantages, balance sheet strength, predictable cash flows, and strength in management.

Diversification

We believe diversification is key in a successful investment strategy. Investments are not limited to large cap Canadian dividend paying equities and we will look outside of Canada’s markets to search for attractive opportunities that provide added diversification.

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Investment Strategies

We offer a diverse mix of investment strategies across multiple asset classes. An investment portfolio can be customized to meet your specific financial targets, volatility tolerance, and liquidity preference.