Dividend Growth Strategy

Dividend strategies are growing in popularity because of many factors in the macro environment: sluggish economic growth, increased volatility, heightened risk aversion and extremely low interest rates on fixed income securities. Many dividend oriented stocks may offer a higher current yield than many fixed income securities.

The Berkshire Dividend Growth Strategy’s primary objective is to generate a growing stream of equity income by investing in a diversified portfolio of stocks which we believe have: attractive, consistent and growing dividends. We believe if we are able to achieve this primary goal by purchasing growing companies with solid balance sheets, capital appreciation will follow. A risk profile below that of the average of the S&P 500 is also viewed as desirable. Because of its dividend growth orientation, the portfolio also seeks to perform better than non-dividend paying stocks or bonds in a rising interest rate environment.

Our process has been highlighted by a “Forward Looking” approach:

  • Simple screens of historical data may fail to capture the full dividend growth opportunity set– especially in a discriminating market.
  • Berkshire focus: identify perennial dividend growers before fully recognized by the market.
  • Bottom up selection process.
  • Some of our highest conviction dividend growth stories flunked traditional backward looking screens, such as: tech, bio-tech and high quality financials.


Dividend Strategy Fact Sheet 3.31.17
Dividend Growth Strategy Guide 3.31.17