LEAD is comprised of dividend-paying U.S. stocks with a high likelihood of increasing their dividend payments, as determined by a proprietary system. However, LEAD holds mostly low-yielding stocks, making it a unique offering that's best compared with broad-based funds like SPY. Its expected yield is only 0.77%. Using SPY as a comparator, LEAD's total returns were about 34% less since its January 2016 launch. With low-single-digit dividend growth rates, I don't see the appeal.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
Daniel Guy Ethos Financial Group LLC | 10,088 | $644,323.76 | $866,798.29 | $222,474.53 | 34.53% |
Christopher C. Powers Farther Finance Advisors, LLC | 2 | $152 | $171.85 | $19.85 | 13.06% |
David Levy Diversified Enterprises LLC | 11,270 | $794,129.99 | $968,360.1 | $174,230.11 | 21.94% |
| TKP Tallon Kerry Patrick Tallon Kerry Patrick | 6,765 | $447,808 | $581,275.86 | $133,467.86 | 29.8% |
Post Resch Tallon Group Inc. Post Resch Tallon Group Inc. | 6,565 | $434,569.03 | $564,089.09 | $129,520.06 | 29.8% |
| BATS Exchange | US Country |
This excerpt outlines the investment strategy for a fund that primarily focuses on dividend growth investment. The fund adheres to a strategy that involves allocating at least 80% of its net assets into securities that compose its benchmark index. The benchmark index itself is constructed on the premise that companies which consistently increase their dividends over time tend to outperform the general market. Conversely, it suggests that those which fail to grow or decrease their dividends typically underperform compared to the overall market. This investment approach is based on long-established theories in finance which posit that dividend growth can be a reliable indicator of a company's financial health and future performance.
These are funds that primarily invest in companies showing a consistent increase in their dividend payouts. The investment strategy aims to capitalize on the idea that such companies are likely to offer superior returns over time compared to the broader market. This is because continuous dividend growth can be a sign of a company's robust financial health and a commitment to returning value to shareholders.
The fund invests at least 80% of its net assets in the securities forming the benchmark index that reflects its core investment philosophy. This index is specifically designed to maximize returns from dividend-growing companies, based on the principle that these companies generally perform better than those that do not grow dividends. By closely tracking this index, the fund seeks to ensure that it consistently aligns with the most promising dividend-growing stocks.