All investing strategies need to evolve with market conditions, and in particular to the current stage of the cycle. So in constructing an income portfolio to perform today, Chris Hall, Chief Investment Officer at Ellerston Capital first classifies income stocks by three categories, the first being ‘dividend champions’. He describes these as:
“Really resilient business models which can generate great revenue, great margins, great revenue growth, great cash flow, and most importantly, great dividend growth without too much influence from the economic cycle”.
Chris provides some examples in this extract from a recent interview and explains his three categories in more detail.