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BFG Equity Income
The objective of the BFG Equity Income portfolio is to provide a stable dividend income and long-term capital appreciation by investing in a concentrated portfolio of profitable companies across the globe.
What is Equity Income?
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Equity Income refers to income generated from stock dividends. Dividend-paying companies are large, well-established companies with mature revenue and earnings.
Benefits of Investing in Dividend Paying Equity
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Steady, long-term income
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Opportunity for capital gain
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Choice to reinvest dividends for growth
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Risks of Investing in Dividend Paying Equity
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Overall market risk in stock market
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Company's inability to make future dividend payments due to cash flow and profitability issues
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Why We Invest in Dividend Paying Equity
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Unlike investing in bonds, current income as well as capital appreciation (growth of the investment) can be realized. In our Equity Income strategy we consistently analyze the portfolio holdings to ensure each company maintains a strong balance sheet with healthy cash flow and relatively low debt. Our strategy holds a combination of mid- and large-sized stocks, varying at approximately 50% of each type, depending on portfolio management activity. Individual holdings are diversified across a wide variety of industries and sectors.
Here are a few stocks held in this strategy...
Blackstone Group Inc is an alternative asset manager with more than $350 billion in assets under management. Its alternative asset management businesses include investment vehicles focused on real estate, private equity, hedge fund solutions, credit, secondary funds of funds and multi-asset class strategies.
Rio Tinto searches for and extracts a variety of minerals worldwide, with the heaviest concentrations in North America and Australia. Iron ore is the dominant commodity with other contributions including aluminium, copper, diamonds, energy products, gold, and industrial minerals.
Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (27% of fiscal 2019 sales), apparel and accessories (19%), food and beverage (19%), home furnishings and décor (19%), and hardlines (16%).
Verizon is now primarily a wireless business and serves about 89 million postpaid and 4 million prepaid phone customers and connects another 24 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier.