We all know stocks can be great investments over the long term – over the last 10 years, investors have quadrupled their money by simply holding an S&P 500 index fund.* But did you know that some investors made 10x or even 15x their money over the last 10 years in “household name” blue chip stocks? Take a look at the chart below showing 7 of the top performing dividend-paying stocks in the last 10 years. This chart also shows 7 companies disappointing investors in the last 10 years, returning far less than an ETF tracking the S&P 500 index.
How does an investor select the winners? Making that distinction requires a diverse skillset –a deep understanding of finance and accounting, business strategy assessment, an understanding of how technology is changing every industry, and perhaps most critically, a view on the caliber of the managers running companies. We screen and analyze hundreds of companies in our search for tomorrow’s “dividend aristocrats.” And we know how to spot a soon-to-be “dividend dinosaur.”
Our Blue Chip Dividend Portfolio has performed well.* If you would like to learn more about how we structure the portfolio, please reach out to us via our interest form. Periodically we host events discussing this strategy, and we would be happy to extend an invitation to an upcoming event.
* past performance does not guarantee future results
Joe Martinez, CFA is the founder of Dallas-based Phlox Capital Management, an investment management and financial planning firm. You can read his commentary at www.phloxcapital.com.