Vestor Capital U.S. Equity Income Strategy
Vestor Capital's U.S. Equity Income Strategy utilizes a valuation and fundamental selection process similar to that of the Vestor Capital Core U.S. Equity portfolio when evaluating companies for inclusion. There are a number of additional criteria, however, namely tied to dividend yield and dividend-paying history. We seek companies that pay a minimum of a 2% dividend yield and have a demonstrated history of uninterrupted dividend payments for at least 12 quarters. Further, we prefer those companies that have a history of raising dividends and avoid those with a history of reducing the size or frequency of payments. In order to maximize the potential benefit of our stock selection skills we limit our portfolio holdings to approximately 25 companies, diversified by sector and industry. With our long-term perspective, the annual portfolio turnover tends to be quite low. This aids in lowering transaction costs and increases the potential long-term, after tax returns. The strategy objective is to provide a total return solution for our clients by diversification and participation in mid-to-large size companies operating in the U.S. offering income and appreciation potential. Strategy performance is benchmarked against the Standard & Poor's 500 Composite Index.