On a price return basis, the Dividend Growth Stocks Model Portfolio (-3.8%) underperformed the S&P 500 (-2.2%) by 1.6% from July 27, 2023 through August 28, 2023. On a total return basis, the Model Portfolio (-3.6%) underperformed the S&P 500 (-2.2%) by 1.4% over the same time. The best performing stock was up 8%. Overall, 13 out of 27 Dividend Growth stocks outperformed their respective benchmarks (S&P 500 and Russell 2000) from July 27, 2023 through August 28, 2023..
The methodology for this model portfolio mimics an “All Cap Blend” style with a focus on dividend growth. Selected stocks earn an attractive or very attractive rating, generate positive free cash flow (FCF) and economic earnings, offer a current dividend yield >1%, and have a 5+ year track record of consecutive dividend growth. This model portfolio is designed for investors who are more focused on long-term capital appreciation than current income, but still appreciate the power of dividends, especially growing dividends.
