Seeking long-term returns - driven by sustainable dividend growth
We believe income investing isn’t just about the next dividend. It's about creating the combination of rising income, backed by capital gains that maximises wealth over the long-term. A very high yield today can mean a lower total return in the long run, because the company isn't reinvesting enough in future growth.
We want to provide investors with an attractive level of income today, but more importantly we aim to provide as much potential for long-term dividend growth as possible. Companies that grow their dividends usually see their shares appreciate over the long-term too - in this way a rising income can also translate into long-term capital growth, though this is not guaranteed and investors could get back less than they invest.
We look for strong cash flow, backed by robust finances that can support a growing dividend, year after year
A balanced approach
We hold a mixture of higher yielding companies, whose dividends will form the bedrock of the overall income, and some exciting, lower yielding stocks that we believe have outstanding earnings and dividend growth prospects. We believe this gives us the right balance, of income today and growth for the future, to achieve a compelling overall long-term return for our investors. We are free to invest in companies of all sizes, and our portfolio will include large, medium and some higher risk smaller companies. Please remember investments, and any income from them, will fall as well as rise in value so investors could get back less than they invest.
We hold around 30 stocks, spread across 15 different sectors. This means that every holding could make a real difference to performance, though it also increases risk compared with a more diverse portfolio. That's why we focus so much on financial strength, as well as dividend potential.
We believe this gives us the right balance, of income today and growth for the future.
Meet the Fund Managers
Steve Clayton, Fund Manager
Steve started working in the City in 1987, after gaining an economics degree from the University of Cambridge, and has worked in the stock market ever since. Early experience at Royal Life, NPI and Halifax eventually led to a Partnership at Mirabaud Securities LLP. That move saw Steve switch from running institutional portfolios to providing leading fund managers in the UK, Switzerland and North America with advice on stock selection and strategy. Steve joined Hargreaves Lansdown in 2014 to provide equity research to our clients and create the HL Select Fund range.
Charlie Huggins (CFA), Fund Manager
After gaining a First in Biochemistry at the University of Oxford, Charlie joined Hargreaves Lansdown in 2011. Working within the Investment Research team, Charlie has focused on equity research and investment management, gaining his CFA® charter. Since Steve Clayton joined HL in 2014, Charlie has worked with Steve to develop HL’s equity fund management capabilities.