Equity Market Commentary: Strong Dividend Growth in 2017

January 11, 2018

Let’s start the New Year with a recap of portfolio highlights and a snapshot view of 2018. Our portfolios demonstrated very strong dividend growth in 2017, with almost 70% of our names increasing
their dividends by a weighted average of 6.5%, well outpacing the rate of inflation and increasing our clients’ standard of living. With three companies already announcing 2018 dividend increases, we are already off to a good start and look forward to another strong year.

CONFIDENCE IN OUR VIEW

Heading into 2018, we remain confident in our view and will continue to look for opportunities to position ourselves more defensively ahead of slowing growth. We have limited to no exposure in the areas of
the markets we view as outright risky and/or expensive, including Cannabis, Technology or Consumer Discretionary. A correction in these overvalued sectors would be welcome as we believe their valuations are not sustainable, yet the momentum is encouraging more and more investors to buy in at prices which expose them to a significant probability of loss.

Read the full Q4-2017 Quarterly Review.

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