Our Investment Philosophy
The investment philosophy at Blue Chip Partners revolves around the selection of a core portfolio of U.S. large-company, dividend-paying stocks (Blue Chip Core Portfolio). We recognize the return from dividends represents actual cash flow - not paper profits. The starting point for a stock to be considered for our Blue Chip Core Portfolio is a dividend yield in excess of the S&P 500.† In addition, we place a high importance on:
- history of increasing dividends*
- balance sheet strength
- free cash flow generation
- growing multinational revenue
The Blue Chip Core Portfolio is normally complemented by a small number of opportunistic stocks, a satellite group of exchange traded funds (ETFs), index and actively managed mutual funds.
Our philosophy is consistently applied to all client portfolios; those portfolios, however, are not all the same. Your specific circumstances and requirements are carefully considered and reflected in the construction and maintenance of your individual portfolio. For example, a “legacy” position that may have a very low cost basis or that may have a particular attraction to you can be retained. Modest adjustments to reflect current income needs can also be individually addressed through the specific selection of dividend-paying equities or through adjustments to the stock/bond mix.
Keep in mind that there is no assurance that this or any strategy will ultimately be successful or profitable.
† an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market
* dividends are not guaranteed and must be authorized by a company’s board of directors
Client accounts are generally held at Raymond James & Associates, Inc., Member NYSE/SIPC, and a subsidiary of Raymond James Financial, Inc., a registered broker/dealer, Member FINRA/SIPC, (collectively "Raymond James"). Accounts may also be held at Fidelity Brokerage Services LLC and National Financial Services LLC (collectively "Fidelity"), a registered broker/dealer, Member FINRA/SIPC or at Charles Schwab ("Schwab"), a registered broker/dealer, Member FINRA/SIPC.
As qualified custodians, Raymond James, Fidelity, and/or Schwab provide your monthly or quarterly account statement, secure internet access to your account information and year-end tax information.
Retirement plan accounts offered by your employer are held by the qualified custodian selected by the retirement plan sponsor.