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Dividend Growth

Santa Barbara Asset Management
David Chalupnik

Strategy description

Dividend Growth is a broadly-diversified portfolio of mid- to large-capitalization equities that seeks to invest in well-run companies that exhibit a commitment to sustainable and growing dividends. The portfolio’s total return approach results in a broad range of yields, including those initiating dividends, driving enhanced diversification potential.

Asset class: Core

For term definitions and index descriptions, please access the glossary in the footer.

 

At-a-glance

Primary benchmark S&P 500® Index
Secondary benchmark Russell 1000® Index
Number of positions 30 – 60
Initial investable universe $3B+
Position weight (approx. equal weighted at cost) 1 - 3%
Individual holding exposure 5% maximum
Sectors represented All
Sub-sector/industry exposure 25% maximum
Non-U.S. exposure 25% maximum
Expected turnover 15 - 40%
Anticipated time horizon 3 - 5 years

 

 

Investment process

The investment team utilizes bottom up, fundamental analysis to identify high-quality companies that are well-positioned to grow their dividend over time. Companies are evaluated based on their balance sheet strength, earnings growth, return on equity, quality of management and their commitment to returning cash to shareholders. 

SMA Dividend growth chart
David Chalupnik
16 Apr 2020


Resources

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A separately managed account (SMA) is a private portfolio of actively managed, individual securities that may be customized to achieve an individual investor's unique objectives.

SMA accounts typically require a minimum investment of $100,000 for equity and asset allocation strategies and $250,000 for fixed income strategies, although the specific minimum account size varies by program and may be subject to change. The manager may waive these minimums based on client type, asset class, pre-existing relationship with client and other factors. For certain accounts, a negotiated minimum annual fee applies. Please consult with your Nuveen Advisor Consultant for applicable minimums.

Check with your financial advisor for specific product availability and performance information. This information may change without notice. From time to time, we may close or reopen strategies.

A word on risk
All investments carry a certain degree of risk, including possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. It is important to review investment objectives, risk tolerance, tax liability and liquidity needs before choosing an investment style or manager. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. A focus on dividend-paying securities presents the risks of greater exposure to certain economic sectors rather than the broad equity market (sector or concentration risk). Growth stocks or growth style investing may fall out of favor and underperform value stocks and other investing styles over any period of time. Certain sectors or growth stocks may shift characteristics over a long market cycle and may not perform in line with stated benchmarks. Smaller company stocks are subject to greater volatility. Foreign investments involve additional risks. The strategy’s potential investment in non-U.S. stocks presents risks such as political risk, exchange rate risk, lack of liquidity and inflationary risk, economic change, social unrest, changes in government relations, and different accounting standards. This strategy may invest in American Depositary Receipts (ADRs). ADRs do not eliminate the currency and economic risks for the underlying shares in another country. Dividends are not guaranteed and will fluctuate. Dividend yield is one component of performance and should not be the only consideration for investment.

Santa Barbara Asset Management, LLC is a registered investment adviser and an affiliate of Nuveen, LLC.