Sheaff Brock Dividend Growth & Income Portfolio Strategy

This strategy seeks growing income and long-term growth of capital from U.S.-headquartered, dividend-paying companies.

Dividend Growth & Income Strategy Overview


The Sheaff Brock Dividend Growth & Income strategy is a portfolio of high quality, dividend-paying equities. Sheaff Brock takes a conservative and disciplined approach with the overall portfolio management, seeking a portfolio of individual stocks in order to generate not only current income, but also to grow the income over time, and have the opportunity to participate in long term capital appreciation.

The primary objectives of the Sheaff Brock Dividend Growth & Income portfolio strategy are threefold:

  1. Identify and invest in individual stocks that have a history of paying dividends
  2. Identify and invest in stocks that have a history and an outlook to increase their dividends
  3. Identify and invest in stocks that have opportunity for capital appreciation

The Sheaff Brock Dividend Growth & Income portfolio invests and diversifies in up to 25 quality American stocks. The stocks selected—based on the Sheaff Brock investment process—are those that strive to provide high, steady, and consistent dividend income, as well as stocks that have the ability to increase dividends and provide long-term capital appreciation over time. The strategy is comprised of generally large capitalization stocks that have a history of paying and growing their dividends. The strategy seeks conservative growth through stock price appreciation and dividend growth.


The strategy is comprised of large companies which each have a long history of paying dividends. Stocks are chosen based on their fundamental and technical strength, as determined by a Sheaff Brock proprietary research and analysis investment process. Initial filters include market capitalization, dividend yield, and strong downside-risk metrics. There are four steps of research Sheaff Brock applies to the buy/sell selection within the portfolio.

First Sheaff Brock employs technical analysis at a sector and industry level in order to determine sector and industry weightings (e.g., overbought/oversold)

Second An initial screen utilizes a fundamental value approach scoring a stock on about 20 variables (e.g., free cash-flow, revenue stability, profitability changes and trend, leverage, stock price volatility and correlation, and earnings surprise persistency).

Third The data is used for analysis focused on downside risk; this measures the risk of a stock versus the potential return, with the goal being to avoid downside risk.

Fourth The methodology focuses on relative valuation metrics. Sheaff Brock analyzes the standard deviation of each stock’s Price-to-earnings ratio relative to its average historical value, and industry value, to identify stretched valuations.

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