The DMWB stock universe consists primarily of large-cap stocks. Most are
blue-chip companies with market capitalizations over $5 billion.
Quantitative screens are used to determine which companies are industry leaders with
strong growth potential. Generally, stocks with an S&P rating of B or better and
a Value Line Safety rating of three or above are included. We look for high-quality
management, consistent sales growth, healthy balance sheets, and conservative accounting
practices.
A list is then developed of companies with low relative price valuation; low
price/earnings multiple; earnings growth above the S&P 500: and strong dividend
growth. Comparative analysis of overall market statistics on an historical, current
and projected basis, as well as projected total return versus fixed-income investments,
are also considered.
The final screening process involves
qualitative and intuitive determinations. We look at the credibility and longevity
of management, management incentive programs and a company's reputation among its industry
peers.
All of DMWB's portfolio managers are active researchers. The
firm gathers information from government data, business and financial publications,
economic consulting services, company seminars, conference calls, personal
contacts, and Wall Street reports.
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