Value Equity Insights

A Good IDEA for the Long Run: The Benefits of Increasing Dividends (December 2021)

A Report from the Value Equities Investment Committee | PDF In this report, we examine the long-term outperformance of stocks with growing dividends; why certain dividend growers outperform and their attributes; how those attributes correspond to our approach when selecting businesses for the IDEA portfolio; and the impact of inflation on dividend stocks. Why Dividends?… Read More »

The Case for Small Caps (December 7, 2020)

by Bill O’Grady, Mark Keller, and Dan Winter | PDF To measure market capitalization, we use the Wilshire Large Cap and Wilshire Small Cap indices. The following chart shows the log-transformed ratio. On this chart, a rising number indicates stronger large caps relative to small caps. In general, small caps tend to outperform coming out… Read More »

Shining a Light on Indexes – How to Help Investors Better Achieve Their Goals (July 2020)

A Report from the Value Equities Investment Committee | PDF “What is the appropriate benchmark for your strategy?” This is a question frequently posed to an investment manager. Before this question can be answered, it is necessary to gain a solid understanding of the strategy by examining the manager’s investment philosophy and how it is… Read More »

IDEA Dividend Update (March 31, 2020)

A Report from the Value Equities Investment Committee | PDF Growing dividends are at the core of Confluence’s Increasing Dividend Equity Account (IDEA) strategy. Given the unprecedented nature of a national economic shutdown to combat COVID-19, it is likely that many companies, including some that may be held in the IDEA portfolio, will choose to… Read More »

Asset Allocation Weekly (April 1, 2016) Test

by Asset Allocation Committee In the most recent GDP report, corporate profits plunged. The overall decline in profits was $153 bn in Q4, although some of this drop was due to an $83 bn settlement that BP had with the government over the 2010 Gulf of Mexico oil spill.  We have been noting for some time… Read More »