Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

TBG introduces Dividend Focus ETF emphasizing consistent growth

EditorHari G
Published 11/07/2023, 10:11 AM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
US500
-

TBG, a firm overseeing $4.6 billion in assets, has rolled out the TBG Dividend Focus ETF, a new investment vehicle that targets U.S.-based companies demonstrating consistent dividend growth. The move underscores the firm's belief in dividend growth as a significant indicator of a company's financial health, according to founder David Bahnsen.

The ETF aims to invest in 25-35 small-, mid-, and large-cap U.S-based companies, particularly those that maintain a dividend yield surpassing the S&P 500 average and register over 5% annual dividend growth spanning five-to-seven-year market cycles. This strategy does not rely on indexing but rather employs a rigorous research-based approach that includes deep fundamental analysis.

This analysis assesses various aspects of the targeted companies, such as balance sheet strength, earnings growth, leverage ratios, free cash flows, and payout ratios. Companies risk removal from the ETF if they experience a significant decline in their dividends, their investment thesis collapses, or their ability to sustain or grow their dividends is threatened.

Bahnsen emphasized that not all dividends are equal, thus underscoring the importance of a diligent selection process. The portfolio is managed by TBG with Madison Avenue Financial Solutions LLC acting as sub-advisor and Empowered Funds dba EA Advisors serving as Fund Advisor.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.