Growth and Income

An Income, Income Growth, and Appreciation Portfolio

The Cypress Growth and Income portfolio is a large and mid-cap portfolio aimed at capturing a strong and growing income stream together with long term appreciation upside. In addition to traditional equities, holdings may include MLPs, ETFs, bonds and preferred equities. The objective is a diversified portfolio with low turnover, a valuation multiple lower than the S&P 500 and a dividend yield higher than the S&P. Particular emphasis is placed on future growth of the dividend and producing a steadily increasing stream of annual current income.

Growth and income is specifically targeted to meet the evolving needs of investors for current and growing income together with capital appreciation in real, inflation adjusted, terms. By most measures, over 40% of the return from equities comes from dividends and even more if those are reinvested. Portfolio holdings must meet a disciplined valuation criteria that focuses on financial strength, cash flow, payout ratios, and prospects for sustainable dividend growth. The investment time horizon is 3-5 years or longer, with a focus on identifying and holding companies that not only pay an above average dividend but can grow it at a significant rate going forward.

Since its inception in 2002, this product has balanced the goals of capital preservation, current income, income growth, and capital appreciation.

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