Our strategy is simple, and it has worked for over a century.
We invest in companies with long track records of dividend growth. Headwaters’ institutional dividend growth portfolios are designed to build great wealth without exposure to great risk.
We invest in assets -- high-quality, dividend-paying and dividend growing companies that rise every single year.
Fact: Nine out of ten stocks that raise their dividend for ten years consecutively will raise their dividend in the eleventh year.
Our analysts use a data-driven approach to prospective investments to ensure that nothing exists in the business’s environment that will jeopardize the dividend. It relies on a screening algorithm that is unique because of its inclusion of an economic moat metric which indicates a company’s insulation from competition. Once a company passes muster -- it’s a viable stream of income for Headwaters. And you.
In the world of investing, it’s a given that past performance is not indicative of future results.
Fortunately, a strong indicator of a company capable of growing its dividend on an annual basis is one that boasts a longstanding history of doing just so. Those that do, consistently outperform the market over the long-term.
Increasing a company’s dividends is an unwritten commitment to shareholders that (managers) corporate boards don’t like to break!
Ultimately the goal is to generate rapidly growing income that outpaces inflation. We do not seek high current income, we seek enormous future income. The driver of our total returns is the growth of the income.
Current Yield + Dividend Growth = Total Return
In the long run, dividend growth has historically driven a stock price and, by extension, total return. For the long-term investor, the value of a portfolio corresponds closely to the present value of dividends. Over the last 40 years, and looking at 10-year investment horizons, approximately eighty percent of investor’s returns have come from dividend growth plus current yield.
Increasing dividend income streams in your portfolio will provide you with a predictable source of income, while enhancing your portfolio's total return potential over time.
In retirement, having diversified and robust income streams to replace an employment check that you might once have had is crucial to not only your physical well-being but your mental well-being as well. Only by means of buying assets over the course of your life does one become wealthy beyond your wildest imaginations.
The best place to be in retirement is in a position where you don’t have anything to worry about. Headwaters Investment Counsel can help get you there, but ultimately, it’s your choice.