NCM Dividend Champions overview

TRANSCRIPT

What can investors expect?

We may not be top decile every year, but we're going to make you money over the long term. And over the long term, a good chunk of that is going to come from the dividends and distributions that you receive. So this is boring investing. This is not sexy or glamorous. But our job is to make your money grow slowly. And our job is to protect on the downside.

How is NCM Dividend Champions managed?

The NCM Dividend Champions is a Canadian focused equity fund. We invest in North American stocks of all market cap sizes. The fund has a risk rating of medium.

A Dividend Champion is many things. First of all, it is a profitable company. It is a company that ideally is a dominant leader in their industry or sector. It is a company with great management. It is a company that earns high returns on invested capital and has a good strong balance sheet. The strong balance sheets allows the companies to withstand shocks, both internal and external.

And it’s a company that recognizes with their profits, I'm going to pay a dividend and also, if I can continue to treat my employees right, reinvest and treat all the investors correctly, I will raise that dividend each year. I'm not expecting huge amounts, but if you're a mature business and you can grow at the rate of the economy, and you can give us a 3% or 4% dividend increase every year, that's wonderful. We'll accept it.

Why we favor dividend stocks is because when you're buying a stock without a dividend, you have to get the buy entry point correct and you also have to get the sell correct. Otherwise you're not making money. But with dividends and Dividend Champions, you get a dividend to start with, and then you most likely are getting a raise every year.

Where does your fund fit?

So you can look at our all the relevant metrics of NCM Dividend Champions versus the index. We are different than the index. We don't try to be a closet indexer. So our fund would fit in with someone who wants a complement to the index.

You'll get a professionally managed portfolio that's time tested, and that's really done well in down markets. If you go back to 2022, the market was down in Toronto, approximately 8%, and the NCM Dividend Champions fund was up 1.5%. But it's really doing what we do: protect on the downside and capture a majority of the upside. And this makes those companies that can raise their dividend every year very important, and in our eyes, very much superstars.

The information in this video is current as of September 25, 2024 but is subject to change. The contents of this video (including facts, opinions, descriptions of or references to, products or securities) are for informational purposes only and are not intended to provide financial, legal, accounting or tax advice and should not be relied upon in that regard. This presentation may include information obtained from third party sources, including charts and data ("Third Party Content"). Third Party Content is for general informational purposes only. Third Party Content has been obtained from sources believed to be reliable, however, no guarantees are made by NCM or by the source of such Third Party Content as to its accuracy, completeness or timeliness, and no liability is accepted for any reliance thereon. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. The viewpoints expressed by the Portfolio Manager represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time without any kind of notice. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. The communication may contain forward-looking statements which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.