Our Investment Philosophy
- We invest in high quality dividend paying companies
- We emphasize:
- Healthy and growing industries and sectors
- Sustainable competitive advantages
- High return on equity and strong balance sheet
- High dividend yield and moderate valuation
- We target predictable growth in earnings and increasing dividends
Our investment objectives
We target increasing dividend and long term value appreciation.
The foundation in our investment process is to thoroughly understand the business and the environment of each company in our portfolio. This is achieved by going through the business model with companies’ management.
Based on numerous company meetings we evaluate current state and prospects of different companies and sectors. We invest in companies that operate on healthy and growing business fields and that have competitive advantages. This is how we aim to assure that each company stays profitable and is able to improve earnings and dividends.
In the numerical analysis we emphasize strong balance sheet and high return on equity. Those enable companies to grow and pay ample dividends simultaneously.
The final step is to look at the shares. Our portfolio is build of the companies that fulfill the above criteria by choosing the ones where also the valuation is attractive and the dividend yield is high. We always look for quality but we don’t want to overpay for it.
As a result of the process we come up with a portfolio of high quality companies with sound growth prospects and predictable, growing dividends.