BUILDING PORTFOLIOS OF THE HIGHEST PREDICTED DIVIDEND GROWERS

OUR PROCESS

Bristol Gate’s four-pillar process identifies and builds portfolios of the highest predicted dividend growers. The process leverages a combination of data science with fundamental analysis to help improve efficiencies, return profiles and minimize human bias.

First Pillar

Dividend Growth

In order to be considered for the portfolio, our machine learning model must predict that a company will be amongst the highest predicted dividend growers in the next 12 months.

Pillar One

Second Pillar

Business Quality

We perform rigorous Productive Capital Analysis™ on the top predicted dividend growers to evaluate the strength and quality of the business.

Third Pillar

Valuation

To ensure that we pay a reasonable price for quality and the dividend growth, we determine the fair value for each company under consideration.

Pillar 4

Fourth Pillar

Portfolio Fit

In the final stages of constructing the portfolio, correlation and principal component analysis together are used to evaluate whether the portfolio is adequately diversified with an appropriate amount of risk exposure.