Dividend paying stocks. High grade investments bonds. No Mutual Funds.
We are conservative, long-term investors that emphasize quality and patience in our shopping process. Our fundamental, guiding investment principles are security, income, and growth.
Our Investment Premise
Investments that pay more cash each year are more valuable than investments that don’t. And those investments will increase in value each year as their cash payments increase.
Our Equity Investment Strategy
Dividends are the foundation of our equity investment strategy for several reasons. First, dividends help us determine a company's financial health and true value. Second, dividends let us share in a company's prosperity by paying us a portion of today's earnings. Finally, dividends represent 42% of the market's total long-term return (see graph below). That's why we only invest in companies which pay generous dividends, have a track record of consistently raising those dividends, and have every likelihood of continuing to increase those dividends.
Our Fixed Income Investment Strategy
We buy and hold investment-grade bonds that fund essential services in financially strong communities and from high quality companies. We also buy investment-grade preferred stocks to increase income and avoid some of the risks of long-duration bonds in periods of rising interest rates.
Unlike fixed-income mutual funds, DCM does not have to buy and sell as money flows in and out of the fund. Because we deal with each client's account individually, and because we buy only individual bonds, DCM is able to operate patiently, buying or selling bonds only at those times when it appears most advantageous for our clients.