Strategic Dividend Investment Strategy 

In 2004, Orleans Capital launched another opportunistic equity investment strategy, the Strategic Dividend Investment Strategy, designed to provide clients with a source of stable income with strong growth potential and take advantage of the historic outperformance of dividend paying stocks and a unique market opportunity. Among other things, the continued convergence of stock and bond yields provided an opportunity to create an equity portfolio which would provide investors with a meaningful increase in portfolio income and yield versus traditional fixed income investments with an enhanced likelihood of price outperformance.


Strategy Summary:

• Strategic Dividend strategy designed to provide source of stable income with strong growth potential and take advantage of current market opportunity.
• The convergence of stock and bond yields created an opportunity for a meaningful increase in portfolio income and yield versus traditional fixed income investments with an enhanced likelihood of price outperformance.
• Current yields on traditional fixed income securities are in many cases equal to that of yield oriented stocks, and certain equities now offer similar or superior yield and a better opportunity for price appreciation.
• In addition, the reduction of the tax on dividend income increases the real after tax income on dividend stocks versus fixed income securities, making these stocks more attractive to some investors

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Investment Criteria:

• Publicly traded U.S. domestic equity securities.
• Specific dividend/yield characteristics which include (1) high current dividend with modest dividend growth prospect and (2) moderate current dividend with high dividend growth prospects.
• Company commitment to appropriate dividend policy.
• Dividend growth expectation must be coupled with historical growth and economic capability to expand dividend.
• Forecasted earnings and revenue growth sufficient to support increased dividends.

Strategic Dividend Mutual Fund:

• In November 2004, The Performance Family of Funds launched the Performance Strategic Dividend Fund (PSDFX), as one of their mutual fund offerings.
• Orleans Capital manages the Performance Strategic Dividend Fund through a sub-advisory relationship with Trustmark Investment Advisors, Inc., the investment advisor to the Performance Family of Funds.  Both receive a fee for their services.

 
For more information about the Performance Strategic Dividend Mutual Fund, please visit the Performance Funds website at http://www.performancefunds.com/index.cfm.  (Performance Funds distributed through BHIL Distributors Inc., member FINRA.)