Dividend & Yield Strategy (DIVYS)

We heard the call and answered it. The success of Hilton’s founding strategy, Hilton Tactical Income, prompted many of our clients to request additional strategies.
Because discipline is in our DNA, we modeled myriad options before launching the Dividend & Yield Strategy (DIVYS), which seeks to deliver competitive risk-adjusted performance over time.

At a Glance

Portfolio Highlights

  • A focus on dividend sustainability and opportunity for dividend growth rather than the absolute level of the company’s dividend.
  • Limited exposure to downside risk when compared to general equity market index investing.
  • Diversified portfolio of global dividend-yielding securities managed tactically utilizing the proven Hilton Capital Management investment process.
DIVYS-Sector-Analysis-Q2_2020

Dividend & Yield Strategy

Sector Analysis

 
Information Technology
25.7%
 
Health Care
16.2%
 
Communication Services
5.8%
 
Consumer Discretionary
8.2%
 
Financials
9.2%
 
Industrials
4.4%
 
Consumer Staples
10.8%
 
Utilities
4.6%
 
Real Estate
4.9%
 
Energy
1.0%
 
Materials
2.9%
 
Cash
6.5%

As of June 30, 2020

At a Glance

It was imperative our next strategy incorporated the same intense examination and investment methodology that has made Tactical Income so successful.

The result is a diversified portfolio of global dividend yielding securities managed tactically utilizing the Hilton Capital Management investment process.
  • Dividend Growth and Stability
  • Risk Adjusted Return
  • Experienced Investment Managers
  • Sector Weighted Diversity
  • Heavy Analysis into Individual Equities

DIVYS invests in companies with above average income through a focus on securities with a history of above average dividends, dividend growth or dividend stability. DIVYS may also tactically invest across other asset classes e.g. preferred securities, trust preferred securities, etc., where there may be potential opportunities for capital appreciation and income.

This low beta approach is designed to limit exposure to downside risk when compared to general equity market index investing.

The Hilton teams focuses on the sustainability of the dividend and the opportunity for dividend growth rather than on the absolute level of the company’s dividend.

 

Hilton_Accordion8
Alexander D. Oxenham
Partner & Co-Chief Investment Officer
Alexander D. Oxenham

The whole ethos of Hilton Capital is risk adjusted return. One simple risk management tool we put in place was S&P sector weighting, which is obviously tied to what is driving U.S. GDP. By putting a strategy in place that follows the S&P weighting, you have a broader, less risky approach while getting equity exposure. It’s elegant in its simplicity but requires the same disciplined approach our clients have come to expect.

Mr. Oxenham should know, as he was the co-founder of HSBC’s dividend yield strategy. Today he is the co-CIO of the Hilton Dividend & Yield Strategy with William Garvey and responsible for investment decisions and asset allocation with a particular focus on overall portfolio risk.

The Hilton Dividend & Yield Strategy invests in US exchange-traded stocks (including foreign American Depository Receipts), as well as dividend-paying and dividend-growth equities of any capitalization.