Dividend & Yield Strategy | Strategies | Hilton Capital Management

Overview

Dividend & Yield uses a dual, top-down and bottom-up approach guided by a 6–18-month macro outlook, fundamental analysis, and valuation discipline. Sector weights are generally kept within +/-3% of the S&P 500, helping maintain market alignment while avoiding overconcentration in high-yield sectors. The strategy seeks strong dividend growth, enhanced yield, and lower volatility, balancing income generation with capital appreciation potential.

Counterculture Approach: Our proprietary market cycle analysis shapes the strategy using macroeconomic insights and two decades of expertise. This approach informs sector allocations and portfolio composition, aiming to optimize performance across market cycles.
Thematic Investing: The strategy leverages thematic investing to capitalize on trends shaping future economic growth, providing targeted exposure to technological and macroeconomic shifts.
Total Return: Total returns, comprising income and capital appreciation, are crucial for long-term investment success. Income generation, capital growth, and lower volatility contribute to portfolio performance across market cycles.

Core Large-Cap Allocation

Provides diversified exposure to dividend-paying large-cap companies through a lower-beta strategy designed to deliver competitive total returns.

Seeks To Help Strengthen

Helps strengthen an equity portfolio by balancing current yield with dividend growth, rather than emphasizing one at the expense of the other.

A Goal To Provide Access To

Provides access to large-cap companies with improving fundamentals and the ability to adapt to changing economic and technological landscapes, supporting sustainable dividend growth over time.

Video

Dividend & Yield Strategy Overview

In this video Hilton Capital Management's Investment Team discusses the Dividend & Yiled (DIVYS) Strategy and what makes it unique in the investment ecosystem.

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Characteristics
Annual Portfolio Turnover	39%
Number of Holdings	60
Wtd Med. Market Cap ($Bill)	216,893
Earnings Growth 3-5 Yr Est	12.7%
P/E Ratio (F12M)	19.34
Dividend Yield	1.97%
Dividend Growth 3 Yr	14.01%

Source: Bloomberg & INDATA

Top 10 Holdings %
State Street Communication Sector	5.1%
Applied Materials Inc.	3.2%
Apple Inc.	4.2%
Fidelity MSCI Consumer Discretionary	2.7%
Taiwan Semiconductor US ADR	3.8%
Broadcom Inc.	3.2%
Analog Devices Inc.	2.9%
JP Morgan Chase & Co.	2.8%
Cisco Systems Inc.	3.2%
Microsoft Corp.	2.8%

Source: INDATA

GICS Sector % of Portfolio
Information Technology	33.3%
Financials	11.3%
Health Care	11.7%
Communication Services	7.2%
Industrials	9.2%
Consumer Staples	5.8%
Energy	5.1%
Utilities	2.9%
Consumer Discretionary	7.1%
Real Estate	3.5%
Materials	0.6%
Cash	2.3%

Source: INDATA

Metric	1 Year	3 Year	5 Year	10 Year	Since Inception
DIVYS Gross	16.1%	16.9%	10.9%	13.4%	12.0%
DIVYS Net	15.5%	16.3%	10.4%	12.9%	11.5%
NASDAQ Dividend Achievers**	17.4%	15.7%	11.4%	12.1%	11.3%
Russell 1000 Value***	27.1%	17.7%	11.1%	11.5%	10.3%

*Preliminary & Unaudited

** Annualized | Inception date 6/1/2014

Source: Bloomberg & INDATA

Metric	YTD 6/30/26*	2025	2024	2023	2022	2021	2020	2019	2018	2017
DIVYS Gross	8.0%	15.9%	22.3%	10.9%	-11.1%	29.2%	11.0%	29.2%	-1.4%	19.3%
DIVYS Net	7.8%	15.3%	21.6%	10.4%	-11.5%	28.6%	10.5%	28.6%	-1.9%	18.7%
NASDAQ Dividend Achievers**	8.8%	14.5%	17.6%	11.9%	-5.8%	23.8%	10.0%	27.5%	-3.9%	18.1%
Russell 1000 Value***	16.2%	15.9%	14.4%	11.4%	-7.6%	25.1%	2.8%	26.5%	-8.3%	13.7%

*Inception 6/1/2014

** Preliminary & Unaudited

DAAX - Nasdaq US Broad Dividend Achievers

R1000V - Russell 1000 Value TR

Source: Bloomberg & INDATA