Why dividends?

Dividends are an essential part of our investment philosophy. Here are few reasons why dividend paying stocks are most suitable for our clients:

• A recurring and growing dividend demonstrates the respect and discipline of a board of directors. This discipline helps investors evaluate the stability of a company.

• A recurring dividend also offers protection against downside risk. When the market fluctuates, dividends diminish the depreciation of stocks and the portfolio as a whole.

• Finally, companies who consistently grow their dividend outperform the companies that pay a steady dividend and companies that pay a steady dividend outperform the companies that do not pay a dividend.