America’s Finest Companies® Equity Strategy
America’s Finest Companies® is an investment strategy that invests principally, but not exclusively, into equity securities from the proprietary list of America’s Finest Companies®.
Portfolio Development and Management
America’s Finest Companies® strategy is rooted in the belief that investing in a portfolio of high quality dividend growing companies serves as an excellent base to build wealth. The strategy builds a portfolio of 20-25 companies viewed to have superior long-term characteristics. Novare Capital evaluates each company’s ability to grow and return profits to shareholders over the long term through various forms that include both dividends and share buybacks.
We start by screening for U.S. based companies that have exemplified the ability to increase their dividend every year for the past ten years. These companies comprise the proprietary list of America’s Finest Companies®. We conduct quantitative and qualitative analysis to determine the following factors:
• Sustainable product or service
• Competitive advantage
• Ability to drive growth in future revenues and profits
• Discount to our estimate of intrinsic value
We strive to invest in companies from this universe that are paying an above average dividend and possess upside potential in their share price. We believe they are excellent companies that provide the right balance of return on investment with safety of principal.