Quality Dividend Yield

Providing high levels of current income, from attractively valued, higher-yielding, large-cap equities.

Overview

Haverford's Quality Dividend Yield Portfolio is designed to meet the needs of investors who desire a balance between current portfolio income and the opportunity for future appreciation. We choose companies for the portfolio based on superior financial strength, above-average and consistent earnings growth, regular and growing dividend payments and a strong competitive position.

Investment Philosophy

  • High quality, established companies provide superior returns with less risk.
  • Dividend paying companies provide superior returns with less risk.
  • Attractively valued stocks with high dividend yields offer the opportunity for above-average capital appreciation and enhanced income.
  • Stock prices follow earnings growth.
  • Appropriate diversification lowers risk.

Investment Process

Investment Process

Portfolio Characteristics*

HaverfordS&P 500
Financial StrengthAB+
Earnings Predictability7764
Average Market Cap ($Billion)200.0154.0
Return on Equity (Median)21.9%13.9%
Dividend Coverage1.8 x2.7 x
Projected EPS Growth (5 Years)9.9%11.7%
Historical EPS Growth (5 Years)2.1%3.4%
Hist. Dividend Growth (5 years)7.9%10.4%
Dividend Yield2.9%2.0%
Price to 2017 Earnings19.318.4
Projected Growth Rate + Dividend Yield12.8%13.7%

Sector Allocation*

HaverfordS&P 500
Consumer Discretionary7.4%14.6%
Consumer Staples21.910.4
Energy5.05.9
Financials11.713.6
Health Care13.713.9
Industrials10.910.0
Information Technology15.121.1
Materials7.02.8
Real Estate0.02.1
Telecommunication2.92.6
Utilities4.43.1

Top-Ten Holdings*

Yield2017 P/E
Philip Morris International Inc.3.521.5
JPMorgan Chase & Co.2.212.0
McDonald's Corporation2.522.4
Johnson & Johnson2.517.3
Apple Inc.1.713.8
American Electric Power Company, Inc.3.417.9
Merck & Co., Inc.2.915.3
E. I. du Pont de Nemours and Company1.919.7
Microsoft Corporation2.320.8
BlackRock, Inc.2.417.3

Notes:
* Based on recommended portfolio weights. The S&P 500 is for comparative purposes only. The S&P 500 is a capitalization-weighted indexes, calculated on a total return basis with dividends reinvested. The S&P 500 is an unmanaged index with no expenses, which covers 500 industrial, utility, transportation, and financial companies of U.S. markets. It is not possible to invest directly in an index. Portfolio characteristics, allocations, and holdings are subject to change at any time based on market and other conditions.
   Measures of Financial Strength and Earnings Predictability are sourced from Value Line Inc. Beta measures exposure to market risk.

Disclosure:
All Data as of June 30, 2017. The information presented should not be construed as investment advice or recommendations with respect to specific securities presented and may not represent the holdings or weighting of any particular portfolio.