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

quality growth investment process

Portfolio Characteristics*

Characteristic

Haverford

S&P 500

Financial Strength A B+
Earnings Predictability 79 65
Beta to S&P 500 0.96 1.00
Average Market Cap ($Billion) 239.0 232.0
Return on Equity (Median) 21.5% 16.3%
Dividend Coverage 1.7 x 2.8 x
Projected EPS Growth (5 Years) 7.7% 10.9%
Historical EPS Growth (5 Years) 5.5% 6.1%
Hist. Dividend Growth (5 years) 7.6% 7.8%
Dividend Yield 3.3% 2.0%
Price to 2019 Earnings 18.3 18.1
Projected Growth Rate + Dividend Yield 11.0% 12.9%

Sector Allocation*

Characteristic

Haverford

S&P 500

Communication Services 2.2% 10.4%
Consumer Discretionary 11.7 10.2
Consumer Staples 15.7 7.5
Energy 7.6 4.7
Financials 10.7 13.0
Health Care 12.9 13.9
Industrials 11.0 9.2
Information Technology 18.5 21.8
Materials 7.1 2.7
Real Estate 0.0 3.2
Utilities 2.7 3.4

Top-Ten Holdings*

Microsoft Corporation 1.5% 23.3
Apple Inc. 1.4 17.7
Cisco Systems, Inc. 3.0 13.9
PepsiCo, Inc. 2.9 23.0
JPMorgan Chase & Co. 3.2 11.2
McDonald’s Corporation 2.4 24.6
Dow, Inc. 6.2 10.8
Philip Morris International Inc. 6.1 13.5
Johnson & Johnson 2.9 14.2
Royal Dutch Shell Plc. 3.3 14.8

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 September 30, 2019. 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.