Power Dividend

"The Performance Power of Dividends"

The hunt for new ideas is a never-ending process on Wall Street. Yet sometimes, powerful investment ideas come from time-tested strategies. The wisdom of dividend investing is well established. Historically, dividends have played an important role in total returns. But during the bull markets of the 1980s and 90s, many investors dropped dividend-paying stocks in favor of high-flying growth opportunities—companies that reinvested all their profits in pursuit of further growth, rather than paying shareholders. Dividends were dull when compared to the allure of rocketing stock prices.

But the investment landscape has changed. With the collapse of the Internet stock bubble, corporate accounting scandals, the current subprime crisis, and a favorable federal tax rate on dividends, dividend-paying companies have regained their appeal.

What’s more, dividends can be a powerful driver of a stock’s performance. In general, companies that consistently increase their dividends are healthy and growing; they have solid management, good cash flow, and exciting prospects for earnings growth. Over time, stocks that pay dividends often tend to outperform stocks that don’t. Together, steadily growing dividends and stock price appreciation add up to powerful total returns that are anything but dull.

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Investment Process

The Navellier Power Dividend portfolio implements a sophisticated growth strategy based on total return potential. Rather than seeking stocks with the highest dividend yields, we focus on companies that have strong profitability characteristics and a history of growing or initiating dividends. The portfolio capitalizes on Navellier’s mathematical stock-selection process and the dedication of our experienced management team.

Portfolio Management Team

Louis G. Navellier, Chief Investment Officer
Michael Garaventa, Portfolio Manager

Portfolio Fundamentals

The table below compares our portfolio fundamentals against their benchmarks. These data are updated on Tuesdays at 2pm Pacific Time.

Data Source: FactSet
Average Sales Change: Last fully reported quarter divided by same quarter one year ago minus one. Average Earnings Change: Last fully reported quarter divided by same quarter one year ago minus one. Average Return on Equity: Trailing four quarters from last fully reported quarter. Net income divided by stockholder equity. Average Forward P/E FY 2: Price divided by average analysts' estimate for fiscal year two. Average Earnings Surprise %: As of last fully reported quarter, actual earnings divided by mean or consensus minus 1. Average Operating Margin % Change: Trailing four quarters percent change in operating margin from last fully reported quarter.