BUILDING PORTFOLIOS OF THE HIGHEST PREDICTED DIVIDEND GROWERS
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.
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.
We perform rigorous Productive Capital Analysis™ on the top predicted dividend growers to evaluate the strength and quality of the business.
To ensure that we pay a reasonable price for quality and the dividend growth, we determine the fair value for each company under consideration.
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.