Equity Income

  • Overview

    Overview

    The Eagle Asset Management Equity Income program offers clients the opportunity not only to take advantage of the security of steady income but also the opportunity to participate in the market's long-term growth potential. The portfolio is diversified among common stocks, convertible bonds, convertible preferred stocks and real estate investment trusts (REITs).

    Investment Process

    The Eagle Equity Income team identifies investment opportunities based on the following criteria:

    Income yield
    • Yield or dividend growth at or above the S&P 500 Index
    • History of consistently paying dividends

    Growth rate
    • Dividend yield plus growth greater than 10 percent
    • Demonstrated commitment to increasing dividends
    • Company is dominant in an expanding industry
    • Growth rate is greater than inflation

    Stability
    • Free cash flow and shareholder-oriented management
    • Stock price below estimated intrinsic value

    Sell discipline
    • Price appreciates above sustainable level
    • New investment idea is relatively more attractive
    • Company has a relatively full valuation and its fundamentals begin to deteriorate
    • Position size becomes too large relative to total portfolio

    Portfolio Characteristics

    Typical Market Capitalization

    $2 billion or greater

    Benchmark

    S&P 500 Index

    Account Minimum

    $100,000

    Typical Turnover

    Generally below 35%

    Typical Number of Holdings

    30 to 40

  • Investment Team

    The Eagle Equity Income team also manages the Eagle All Cap Equity and Eagle Value portfolios. Contact us for information about available investment vehicles.

    Equity Income Investment Team

    David Blount

    David Blount, CFA, CPA

    Portfolio co-Manager

    34 Years Of Industry Experience

    25 Years With Eagle Asset Management

    Ed Cowart

    Ed Cowart, CFA

    Portfolio co-Manager

    46 Years Of Industry Experience

    19 Years With Eagle Asset Management

    Harald Hvideberg

    Harald Hvideberg, CFA

    Portfolio co-Manager

    21 Years Of Industry Experience

    4 Years With Eagle Asset Management

    Brad Erwin

    Brad Erwin, CFA

    Senior Research Analyst

    23 Years Of Industry Experience

    10 Years with Eagle Asset Management

    Enrique Acedo

    Enrique Acedo

    Research Analyst

    8 Years of Industry Experience

    3 Years With Eagle Asset Management

    Michael Rich

    Michael Rich, CFA

    Research Analyst

    13 Years of Industry Experience

    3 Years With Eagle Asset Management

    Chris Kouffman

    Chris Kouffman, CFA

    Portfolio Analyst

    15 Years Of Investment Experience

    14 Years With Eagle Asset Management

    Matt Stuart, CFA

    Matt Stuart, CFA

    Client Portfolio Manager

    11 Years of Industry Experience

    6 Years With Eagle Asset Management

  • Performance

    Performance1 as of September 30, 2018

        Current
    Quarter
    Year
    to Date
    One
    Year
    Three
    Year
    Five
    Year
    10
    Year
    Since Inception
    (July 1, 1981)

    Eagle Equity Income

    Gross

    9.23%

    8.86%

    17.56%

    17.40%

    11.97%

    11.11%

    11.16%

    Eagle Equity Income

    Net

    8.92%

    7.95%

    16.24%

    16.05%

    10.61%

    9.45%

    9.20%

    S&P 500 Index

     

    7.71%

    10.57%

    17.91%

    17.32%

    13.96%

    11.97%

    11.52%


    Compounded, Annualized Rates of Return Net of Fees as of September 30, 2018

    Year Percentage $100,000 Compounded

    1

    16.24%

    $116,237

    3

    16.05%

    $156,301

    5

    10.61%

    $165,556

    10

    9.45%

    $246,630

    15

    8.48%

    $338,838

    Since Inception (July 1, 1981)

    9.20%

    $2,660,026


    Risk Information
    The risks associated with Equity Income investing are based upon the identification of companies which possess both moderate growth rates as well as higher-than-average and consistent dividend distributions. Historically, dividend yields have been relatively constant and therefore have created a cushion for investors when stock prices have declined. However, as with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.

    Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.

    Disclosures
    (1)The definition of the accounts included in the Equity Income Composite is as follows:
    The Equity Income Composite includes stocks with above-average stock dividend yields, plus consistent dividend growth over time. Stocks in these portfolios are divided between those
    with above average current yields and those with a high dividend growth rate. 

    Past performance does not guarantee or indicate future results. No inference should be drawn by present or prospective clients that managed accounts will achieve similar performance in the future. Investment in a portfolio, investment manager or security should not be based on past performance alone. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated. Individual portfolio/performance results may vary due to market conditions, trading costs and certain other factors, which may be unique to each account. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Investing in equities may result in a loss of capital. Investing involves risk and you may incur a profit or a loss. Investment returns and principal value will fluctuate so that an investor’s portfolio, when redeemed, may be worth more or less than their original cost. Diversification does not ensure a profit or guarantee against a loss.

    The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Calculations include reinvestment of all income and gains. Gross performance presented is "pure gross" and is shown before deduction of any fees. Net returns have been reduced by the entire bundled/wrap fee. The bundled/wrap fee will typically include trading, investment management, portfolio monitoring and other administrative fees charged by the sponsor. Eagle's fees are set forth in Eagle's ADV, Part II. Over a period of five years, an advisory fee of 1% could reduce the total value of a client's portfolio by 5% or more. Performance figures include all of Eagle’s retail managed accounts.

    Eagle Asset Management, Inc. ("Eagle") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. Eagle has been independently verified for the periods from January 1, 1982 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The verification and performance examination reports are available upon request.

    Eagle Asset Management, Inc. is an investment adviser registered with the Securities and Exchange Commission and is engaged in providing discretionary management services to client accounts. The benchmark is the S&P 500 Index, which has been derived from published sources and has not been examined by independent accountants. The composite creation date for GIPS purposes was January 2011.

    Currency: all monetary amounts displayed on this website are in U.S. dollars.

    To obtain a compliant presentation and/or the firm's list of composite descriptions, please contact Eagle Asset Management at 1.800.237.3101.

  • Literature

    Documents available for download


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