The TBG Dividend Focus ETF seeks out companies within the U.S. stock market that exhibit strong potential for increasing their dividend payments. The initial step in its investment process involves identifying American firms across large, mid, and small market capitalizations that offer a dividend yield higher than the current average of the S&P 500 index. Subsequently, the fund applies a thorough bottom-up fundamental analysis to pinpoint businesses capable of growing their dividends by over 5% annually throughout a typical 5- to 7-year market cycle. The fund's advisor particularly favors companies that have a proven record of expanding their free cash flow, earnings, and dividends while simultaneously upholding robust financial health. The reputation and quality of a company's management team are also significant factors considered by the advisor. This selective approach typically results in a portfolio comprising between 30 and 40 individual companies. As an actively managed fund, the advisor retains complete authority to buy, hold, or sell portfolio securities whenever deemed appropriate. Furthermore, TBG has the option to lend out securities, up to a maximum of one-third of its total assets.
