The Dividend Aristocrats 20 – Low Cost Individualized Accounts

Durig Capital is excited to introduce a new Dividend Aristocrats 20 Portfolio that targets 20 of the highest yielding blue-chip stocks listed on S&P 500 for investment. The key focus is to invest only in the stock of blue-chip companies with a current high dividends plus a history of increasing their dividends over time, and have not made any cuts or reductions of their dividend payout to stockholders in recent history. If their dividend is not increase annually they will be dropped from the portfolio. This focus should allow investors to consistently capture to the “cream of the crop” of higher dividend companies, or rather the dividends of the 20 highest yielding blue-chip stocks listed on various market exhanges.

This portfolio strategy does encompass some of the same methodology of Durig’s other equity based portfolio strategies like the Dogs of the Dow and the Dogs of the S&P 500, however there are some key differences discussed below that set Durig’s Dividend Aristocrats 20 apart from others.

Difference 1

The Dividend Aristocrats 20 Portfolio has a far wider and more diversified, balanced selection of Large Blue Chip S&P 500 companies compared to the more focused Dogs Portfolio Strategies by Durig Capital. The Aristocrats selection process focuses on a a much wider selection of the highest yielding (in terms of dividends) blue-chip stocks from a variety of established market indices, not just the Dow Jones Industrial Average.

Difference 2

Another important characteristic of this strategy is the employment of equal weighting among the positions within the portfolio. For example, in Durig’s Dogs of the Dow and Dogs of the S&P 500, Durig exercises strategic weighting of the top yielding “Dogs” to achieve higher yields.

Durig’s Dividend Aristocrats 20 employs equal weighting not only to avoid over-exposure to any one equity position, but also to allow for a strong level of diversification among market indices, companies, and industries, for those more risk adverse to fast moving stocks, but still want the rewards of having a diversified, blue chip high dividend portfolio.

Benefits of A Dividend Aristocrats 20 Portfolio

Because this portfolio contains a greater diversity of high yielding blue-chip equity from various market indices, it is much more diversified than our two other blue-chip equity-based portfolio strategies. The stated goal for this strategy is to introduce investors to the high quality dividends of blue-chip equity, all contained within a well diversified, individualized, and very low cost portfolio, with lower volatility. Over time, this strategy is designed to produce both growth of principal while also gradually growing tax advantaged dividend income.

Dividend Aristocrats 20

Annual Cost: 0.50% or 1/8 of a percent per quarter.
Average Dividend Yield of About:  3.5%
Minimum Investment: $40,000
Minimum Holding Period: None
Custodian: TD Ameritrade Institutional

Historical Performance

(Performance as of 9-12-19)

Summary 

In essence, Durig’s Dividend Aristocrats 20 Portfolio targets  the stock of only the highest dividend yields of blue-chip companies with a history of maintaining consistent growth of dividends.  If the dividend is cut or does not increase over the course of the year, it is replaced. In this way, Durig Capital believes it has created a portfolio that should produce consistent growth and dividend income over time.  Additionally, blue chip companies are very large, established firms with a strong track record of consistent growth and stable earnings, and historically, have consistently proven their ability to recover from market downturns.  

For those seeking income stability and blue chip peace of mind in an uncertain world, Durig’s Dividend Aristocrats 20 Portfolio may offer investors a potential solution with professional management, all at a very low cost.  To learn more, call us at (971) 732-5121, or email us at info@durig.com

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