The Aggressive Growth Strategy is very similar to the Dividend Growth Strategy; that is, the objective is to invest in a growing stream of dividends and to do so under a very strict buy/sell discipline. The screening process is virtually the same as the Dividend Growth Strategy (see Dividend Growth Strategy tab under the Our Strategy tab) as is the buy/sell discipline (see Price Disciplines tab under the Our Strategy tab). The differences are that:
- While a growing dividend is still a necessity, the dividend yield threshold has been removed; in other words, stocks in this Universe yield less 1.5%, in many cases less than 1%,
- The dividend only has to have been paid for 5 years instead of 10 in the Dividend Growth Strategy--though it must have been raised frequently,
- The stocks of the companies in Aggressive Growth Universe in general will be more volatile than those of either the Dividend Growth Universe or the High Yield Universe,
- As an offset to the lower yield and higher stock volatility, the financial hurdles, such as return of equity, earnings growth rate, debt to equity ratio, that qualify companies for inclusion in the Aggressive Growth Universe are set higher
We want to emphasize that we are in no way recommending that the stocks in the Aggressive Growth Portfolio and Aggressive Growth Buy List be used as substitute investments in a conservative, fiduciarily responsible portfolio. IN FACT, WE STRONGLY RECOMMEND THAT INVESTORS WHOSE ASSETS ARE LIMITED TO RETIREMENT ACCOUNTS OR WHO HAVE HISTORICALLY BEEN UNCOMFORTABLE IN VOLATILE MARKETS NOT UTILIZE THIS PART OF OUR SERVICE.
However, subscribers can use this new service in a number of ways:
- For investors who historically have dedicated a portion of their non-retirement assets to more aggressive investments may want to pick some of our recommendations—being careful to not invest an inappropriate amount of money in any one,
- For individuals with sizeable non-retirement assets, who have historically invested in aggressive investments, can utilize our Aggressive Growth Portfolio and Aggressive Growth Buy List in much the same way as they utilize our other products.
Details regarding our pricing disciplines may be found here, and the vulnerabilities that we have identified in our strategy can be viewed by clicking on Risk Factors and Caveats.
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