VIP’s Investment Philosophy is founded on the belief that owning companies that pay a dividend and have a track record of increasing that dividend each year leads to superior long-term investment results and wealth creation. These “Dividend Growth” companies represent a biased selection of businesses that have stable and sustainable business models, have weathered downturns and prospered in recoveries and, most importantly, rewarded shareholders with dividend increases through a wide variety of market and economic conditions.
We construct portfolios of Dividend Growth companies that are designed to accomplish four “jobs” on our clients’ behalf:
1 Generate meaningful and dependable quarterly dividend income;
2 Grow the dividend income annually;
3 Provide attractive long-term capital appreciation; and
4 Protect capital in down markets.
We use internally generated data sets to evaluate every prospective holding on each of the four jobs. We will consider adding a company to our portfolio only when our work suggests that it will materially improve the portfolio’s ability to perform one or more jobs without materially degrading any of the remaining jobs. Every company considered is modeled using our proprietary analytic template. While our bottom up approach is naturally sector agnostic, we actively manage instances of sector risk aggregation.
We recognize that each client will rank the importance of each of the four jobs based on what is most important to them, so we have created multiple strategies, which we refer to as our “Targeted Equity Income Strategies”, to meet the needs of different clients.