PRINCIPAL STREET EQUITY INCOME STRATEGY
The Principal Street Partners Equity Income Strategy (“PSP EI”) is a domestic, large-cap, dividend-focused equity strategy.
Derived from a repeatable, disciplined investment process, the strategy is designed to identify companies with attractive balance sheets and a heritage of paying above-market dividends coupled with dividend growth.
Principal Street’s proprietary research demonstrates companies fitting this profile can provide superior absolute and relative risk-adjusted performance compared to non-dividend payers over the longer term. Since 2008, the strategy’s average historical dividend yield is 1.9x that of the S&P 500 and the dividend payout has grown at over 10% per annum since inception.
Construct a portfolio of blue chip U.S. companies with the following attributes:
— High-quality and liquid balance-sheets
— attractive relative cash flow margins
— investment process
— Rebalanced and reconstituted quarterly
— or as needed
40 equal-weighted holdings across ten sectors with four positions in each sector
— Real estate sector excluded due to
— mandated REIT distributions and non-
— qualified dividend tax treatment
— Equal-weighted portfolio provides
— greater industry diversification
— and migrates allocating capital to
— overbought sectors