Our approach: a bottom-up strategy
Sustainable Dividends applies a pronounced bottom-up investment strategy. We do not start from predetermined sectors, macro-economic themes or top-down allocation decisions. Instead, we select individual European enterprises based on quality, dividend growth, valuation and sustainability.
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Our analysis starts with the company itself. Only when an enterprise meets our criteria is it included in the portfolio. The sector distribution within the fund is therefore the result of our selection — and never the starting point. This creates a portfolio that organically responds to structural developments within Europe.
From macro to micro
Our strategy starts with a broad universe of European equities. From this universe we map, through screening and analysis, a selective group of enterprises that fit within our philosophy.
Through this approach a clear and structured selection process arises. We start broadly, but step by step build a concentrated portfolio of companies in which we have a clear conviction.
Dividend — Value — Sustainability
Our strategy rests on three pillars: dividend growth, attractive valuation and sustainability. We believe that companies that combine these factors are better positioned for long-term value creation.
We see dividend as an indicator of quality and strong cash flows. Valuation determines the entry moment, while ESG integration helps to better understand risks and select future-proof enterprises.
The result is a concentrated portfolio of approximately twenty to thirty European equities.
Our screening criteria
Before an enterprise can become part of the portfolio, it is assessed on the basis of objective measures. This first selection helps us focus on companies with strong fundamentals and predictable income streams.
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We look among other things at:
The screening is repeated periodically, as a result of which companies that structurally meet the criteria are retained and new enterprises can enter when they start to meet the criteria.
Integral analysis and valuation discipline
After the first screening follows an in-depth integral analysis in which fundamental factors, ESG considerations and valuation come together. We assess enterprises on their business model, financial position and capital allocation, with the aim of selecting companies that can create sustainable value for shareholders.
Sustainability is not a separate step, but a fixed part of our analysis. We look at environmental impact, social responsibility and governance, as well as at the role that products and services play within social transitions. By integrating ESG in every phase of the process, we aim to better understand structural risks and identify future-proof enterprises.
Besides quality, valuation plays a central role. We only invest when an enterprise is attractively valued relative to our estimate of intrinsic value. By striving for a margin of safety between current market value and calculated value, we try to limit risks and create room for long-term return.
Portfolio construction
The final portfolio reflects a combination of conviction, valuation and dividend potential. Each position is weighted based on our analysis, resulting in a balanced mix of stability, quality and growth potential.
With approximately twenty to thirty carefully selected European equities we combine diversification with focus. This approach enables us to actively utilize opportunities, while remaining faithful to our core principles.
Our principles
Our strategy is driven by a number of clear principles that give direction to every investment.
Long-term focus
We focus on enterprises that can create value over multiple years, instead of following short-term movements.
Discipline in valuation
Entry moments are determined by valuation and not by market sentiment.
Risk management
Through diversification and fundamental analysis we aim for a stable portfolio.
Consistency
We follow a structured process and avoid ad-hoc decisions.