Our Rising Dividend Cornerstone™ strategy is designed for investors who prioritize stability, income, and long-term growth. It focuses on building a reliable, steady income stream without sacrificing the potential for capital appreciation. This strategy appeals to a wide variety of investors because it is built on the bedrock of owning strong, well-established companies that continue to pay generous and consistently rising dividends, even when stock prices are down.

Risk-Aware Investors
The Cornerstone strategy is ideal for investors looking to protect their assets from market volatility. By focusing on well-established companies with a track record of paying and increasing dividends, the strategy aims to reduce the impact of market fluctuations on the portfolio. While no investment is entirely risk-free, Cornerstone has historically shown resilience in troubled markets, providing a smoother investment journey through periods of economic uncertainty. This makes it suitable for individuals who are cautious about taking on risk but still want exposure to the stock market’s potential growth.

Income-Focused Investors
Cornerstone offers a solid foundation for investors who may rely on their portfolios to generate regular income, such as retirees or those nearing retirement. Growing dividends provide immediate income and help keep pace with inflation, ensuring that your money maintains its value. This makes the strategy particularly attractive to those who need a dependable source of income to cover living expenses or other obligations without being overly exposed to the swings of the market.

Long-Term Growth Investors
For those who aim to see their money grow over the years without worrying too much about short-term market swings, the Cornerstone Strategy may be a great fit. While the strategy prioritizes security and income, it also aims to deliver capital appreciation over time. The philosophy behind the strategy is simple: companies that consistently increase their dividends tend to see corresponding growth in stock prices. This principle suggests that as dividends rise, so does the company's overall value, benefiting shareholders through both income and capital gains. For those who do not need immediate liquidity or income, dividends are reinvested, and the portfolio benefits from compounding growth, which is a powerful tool for building wealth over time. Investors who understand the value of patience and can weather the ups and downs of the market will find this approach helps with their financial goals.

Investors Building a Legacy
As the Cornerstone name suggests, no stone is more important for building a financial legacy. The emphasis on income generation combined with growth potential means that investors can leave behind a portfolio that not only provides financial security but also has the potential to continue growing for future generations. By investing in dividend-paying stocks with a history of consistent performance, investors are laying the groundwork for a solid financial foundation that can be passed down to heirs or used to achieve long-term goals.

Grant-Making Foundations
Grant-making foundations could also benefit from this strategy. By investing in companies with a proven track record of increasing dividends, organizations can create a steady revenue stream to fund grants while maintaining the long-term growth of their endowment. The focus on stability and income aligns well with the foundation’s need for sustainability, ensuring they can continue supporting their causes well into the future.

Why Choose This Strategy?
Rising Dividend Cornerstone is well-suited for a wide range of investors, from individuals seeking stability and income to those focused on long-term growth. Its emphasis on investing in dividend-growing, financially strong companies makes it an appealing choice for risk-aware investors, retirees, and even grant-making foundations. This strategy offers a balanced approach to wealth accumulation by combining steady income with potential capital appreciation. We believe it is an ideal option for those looking to build and preserve wealth over time while securing a legacy.

This article was featured in the Winter 2025 edition of the Rising Dividend Report.

Read more articles from this issue here.