Investment Strategies

MOONDANCE DIVIDEND GROWTH PORTFOLIO

Our Dividend Growth Strategy identifies quality companies with:

  • An attractive current dividend.
  • Potential for dividend growth in the future. Many of our portfolio holdings have increased their dividends annually for 10 or more years. Some companies in our strategy have increased their dividends for 30+ consecutive years.
  • The financial strength to maintain & increase dividends.
  • Our Dividend Growth Portfolio has large recognizable stocks that our clients are likely familiar with.
  • The portfolio owns shares of McDonalds, Exxon Mobil, Coca Cola, UPS, Apple and many other blue chip and quality companies. This portfolio often helps our clients to feel more comfortable with the ups and downs of the stock market and the financial stability of our selected portfolio companies.

Why dividends?

  • It takes cash flow & earning power to pay dividends to shareholders.
  • Dividend income is a major component of stock portfolio total return over time. In some volatile years in the market it is the only positive return on a portfolio.
  • A rising income stream helps to keep up with the rising cost of living for both individuals and non-profit entities.
  • Tax advantaged return for taxpayers. Most of our stock picks have a lower tax rate on dividends and generate long term capital gains when sold.

Remember the old Main Line adage of "Never spend your principal" or the Farmer's "Don't eat your seed corn".

With interest rates at a generational low, many individuals and non-profit groups find it difficult to provide for current income requirements and to keep up with inflation in the future.

We feel our Dividend Growth Strategy can help to meet current income needs while seeking to increase annual income in the future.

Our portfolio of quality & blue chip companies also has the potential to appreciate in value over time. Many clients will reinvest their dividends now and later turn their income stream on in the future when they need it.

MOONDANCE CURRENT INCOME PORTFOLIO

  • A blend of quality mature companies which pay a significantly higher current dividend yield or distribution but which might have a lower potential for growth of dividends, distributions & share price over time.
  • This strategy would be suitable for a client who needs a higher current income or has a non-profit spending mandate to be funded.

We can allocate this Current Income Portfolio along with our Dividend Growth Portfolio to provide for a higher blended current income.

We screen for companies with a higher current yield or distribution and focus less on the potential for Dividend Growth.

For example, we might buy ATT (T) in this portfolio rather than Apple (AAPL).This strategy might also allocate some funds to ETF's, REITS, and Utilities. 

ASSET ALLOCATION STRATEGY 

This investment strategy diversifies your portfolio worldwide in numerous asset classes -  types of investments.

We invest in institutional class mutual funds or Exchange Traded Funds. We often utilize Vanguard or Blackrock ETF’s.

U.S. & international, large & small companies, growth & value style, real estate and U.S.  government & corporate bonds, our goal is to diversify your individualized portfolio into potentially thousands of investments.

This is a “not all of your eggs in one basket” investment approach.