Equity Income

About Our Models: Equity Income

  • Description: Our Equity Income model is a portfolio of domestic, mature-growth companies. The portfolio invests primarily in high-quality, blue-chip companies. We look to create a portfolio that yields slightly more than the S&P 500 Index. We favor large companies with  consistent earnings growth and management teams that are focused on increasing the money they return to shareholders in the form of dividends. On average, the Equity Income portfolio will hold 35 companies with no single company comprising more than five percent of the portfolio.
  • Primary Aim: The primary aim of this model portfolio is to generate dividend income. The secondary goal is to generate return through price appreciation.
  • Selection Process: CapWealth looks for companies that consistently raise their dividends while growing earnings. We believe this combination demonstrates a measure of financial strength that is attractive.
  • Risks & Rewards: There is always a risk of capital loss when investing in the equity markets. This model portfolio looks to reduce the risk of the portfolio by owning large, mature companies. Each client’s risk tolerance and investment horizon should be considered when determining the appropriateness of any investment.