Investment Philosophy

philosophy

Why Dividends Matter

We emphasize dividend paying stocks in our portfolio for a number of reasons:

  • Dividends provide stability and reduce portfolio volatility.
  • Stocks that pay dividends have historically produced higher returns on average than non-dividend payers.
  • Cash returns are generated regardless of stock price movement.
  • Dividend payouts demonstrate good corporate behavior and reflect management’s confidence in the future.
 

We believe that the opportunity to generate superior risk-adjusted returns over an entire market cycle is best achieved by:

  • Participating in rising markets while avoiding speculative investments.
  • Protecting capital in down markets.
  • Reducing volatility in client portfolios.
  • Concentrating on stocks with superior dividends.
  • Maintaining a long-term focus on value realization.

First Fiduciary’s value-oriented equity philosophy is centered on investing in large, well-established companies selling at significant discounts relative to their intrinsic values. Importantly, we look for these companies to be rich in assets and possess strong dividend-paying capacity.

Our emphasis in fixed income management is on:

  • Quality
  • Treasurys, agencies, investment-grade corporate bonds
  • High-grade municipals, when appropriate
  • Marketability
  • Highly liquid
  • Maturity structure
  • Typically laddered to an average maturity of ten years or less

Performance + Peace of Mind

The First Fiduciary Advantage