Alpine Saxon Woods Dividend Strategy
Overview
The Dividend strategy invests in companies that have maintained or increased dividends for at least the past 5 years. Fundamental research is performed on each company’s ability to sustain its dividend and potentially increase those payments in the future, incorporating analysis on free cash flow and numerous balance sheet metrics. The strategy is market capitalization and sector agnostic, but the nature of dividend paying companies tends to tilt towards a mid-to-large capitalization profile.
Investment Objectives
The objective of the Strategy is to generate high current income, growth of income, and capital preservation by investing in high-quality companies that pay attractive dividends and have the potential to increase those dividends over time. This approach aims to provide consistent returns, especially during market volatility.
Portfolio Construction
The portfolio is constructed using liquid, publicly traded stocks and is typically fully invested. Positions are generally initiated at weights of 3% to 5%, with the portfolio normally holding between 35 and 45 securities. To maintain diversification and manage risk, individual security positions are generally limited to no more than 10% of portfolio assets, while sector exposure is limited to 25% of the portfolio or 1.5 times the benchmark weighting, whichever is greater. Quantitative risk management statistics are regularly reviewed to identify where portfolio risks exist and to evaluate the sources and magnitude of those risks.
Risk management is an ongoing component of the investment process. Portfolio holdings are continuously monitored, and investment theses are formally reviewed when a stock declines 15% from its initial purchase price. This review is intended to determine whether the original investment rationale remains intact and whether the risk-reward profile continues to be attractive.
Securities may be sold for several reasons, including changes in company fundamentals, deterioration in operating or financial health, or when the original investment thesis is no longer valid. Positions may also be exited when anticipated catalysts fail to materialize or are no longer expected to drive future value creation. In addition, holdings may be reduced or eliminated when they reach the team's valuation target. Portfolio diversification guidelines, including individual security and sector exposure limits, are also considered as part of the sell discipline and ongoing portfolio management process.
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Quick Facts
As of
June 30, 2026
Fund
SMA Inception Date
1/1/2019
Benchmark 1
S&P Dividend ETF (SDY)
Benchmark 2
iShares Russell 1000 Value ETF (IWD)
Strategy AUM
$89.42M
Investment Minimum
Negotiable
Fees
Negotiable
Meet the Team
Mark T. Spellman
- 32 years industry experience
- BS: Boston College
- MBA: UMass Amherst
Brian Hennessey, CFA
- 27 years industry experience
- BA: Williams College
- MBA: M.I.T.
Sarah Hunt, CFA, CFP®
- 26 years industry experience
- BA: Wesleyan University
- MBA: Fordham University
Ronak Jain, CFA
- 17 years industry experience
- BBA: Macaulay Honor College at Baruch College
Characteristics
As of
June 30, 2026
Strategy
Benchmark 1
Number of Holdings
37
155
Median Market Cap ($B)
90.91
21.74
TTM Dividend Yield
2.57
2.79
1-Year Dividend Growth
6.21
5.19
5-Year Dividend Growth
6.89
6.39
P/E 1-Year Forward
20.07
19.21
Free Cash Flow Yield
3.94
3.89
Total Debt/EBITDA
3.04
3.01
Active Share
84.60
–
Annual Turnover
60.7
–
Please see the Glossary for descriptions of these terms.
Sector Analysis
As of
June 30, 2026
Strategy
Benchmark 1
Financials
15.4
%
13.1
%
Technology
12.9
%
8.2
%
Healthcare
12.8
%
7.5
%
Industrials
12.6
%
19.1
%
Materials
11.8
%
7.6
%
Consumer Staples
9.7
%
16.5
%
Real Estate
7.7
%
4.4
%
Utilities
7.7
%
14.6
%
Consumer Discretionary
6.2
%
4.4
%
Energy
3.2
%
2.4
%
Communications
0.0
%
2.2
%
Top 10 Holdings
As of
June 30, 2026
Fund
JPMORGAN CHASE
4.0
%
TEXAS INSTRUMENTS
3.6
%
ABBVIE INC
3.6
%
EQUINIX INC
3.4
%
CISCO SYSTEMS
3.4
%
BROADCOM INC
3.3
%
L3HARRIS TECHNOLOGIES
3.3
%
AMGEN INC
3.3
%
MEDTRONIC PLC
3.3
%
EMERSON ELECTRIC CO
3.2
%
TOTAL
34.4
%
Risk/Returns Metrics
As of
June 30, 2026
Strategy
Benchmark 1
Alpha
3.75
–
Beta
0.91
1.00
Sharpe Ratio
0.55
0.32
Standard Deviation
14.16
14.55
Up/Down Capture
100/84
–
Risk/Return Metrics based on rolling 5-year period measured quarterly. Past performance is no guarantee of future results. Investing involves risks, including the possible loss of
principal.
Please see the Glossary for descriptions of these terms.
Average Annual Total Return
As of
June 30, 2026
As of
August 31, 2026
YTD
1 Year
3 Year
5 Year
Since Inception
Gross
12.69
%
21.97
%
17.99
%
11.58
%
11.81
%
Net (Composite)
12.27
%
20.96
%
16.92
%
10.56
%
10.79
%
Benchmark 1
10.73
%
15.08
%
10.33
%
7.28
%
10.30
%
YTD
1 Year
3 Year
5 Year
Since Inception
Gross
14.74
%
19.06
%
18.61
%
11.40
%
11.80
%
Net (Composite)
14.05
%
18.05
%
17.50
%
10.36
%
10.76
%
Benchmark 1
13.69
%
13.46
%
11.41
%
7.42
%
10.44
%
Past performance is no guarantee of future results. Investing involves risks, including the possible loss of the principal amount invested. The use of Alpine Saxon Woods does not eliminate risks associated with investing. Consider the investment objectives, risks, charges, and expenses carefully before investing. The information presented has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Opinions, estimates and projections constitute the judgment of Alpine Saxon Woods and are subject to change without notice. This material is presented for informational purposes only and is not an offer, recommendation or solicitation regarding any financial product or service or as a determination that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the investor’s objectives, financial situation and particular needs. The investments or investment strategies discussed may not be suitable for every investor. There is no assurance that any investment strategy will be successful. Some investment products may be available only to certain “qualified investors” — that is, investors who meet certain income and/or investable assets thresholds.
Performance is presented both gross and net of composite fees. The highest fee applicable for a separate account managed directly by Alpine Saxon Woods is 1.0% annually. (Strategies accessed through third-party wrap programs will pay fees as high as 3%.) Gross-of-fee returns reflect the impact of transaction costs but not the deduction of advisory fees. Net-of-fee (Net) returns reflect the deduction of all transaction costs and advisory fees to accounts in the composite. Actual fees and account minimums may vary. Indices, including index ETFs, are provided solely for illustrative purposes. Indices are not available for direct investment, and do not reflect the deduction of fees and trading costs, which would reduce returns. ETFs are similarly provided to illustrate particular industries or industry groups and are not recommendations for investment. ETF fees and expenses are lower (typically 0.10%-0.35%) than is typical for a managed account, which can exceed 1%.
The positions provided represent holdings as of the date shown and are subject to change without notice. Reported positions do not include all securities that were purchased, sold or held in client accounts over time. It should not be assumed that the holdings described are or will be profitable or that securities purchased in the future will be profitable or will equal the performance of the securities in this list. References to specific securities do not represent a recommendation to purchase or sell any particular security outside a managed account.
The Quarter's Top Contributors
As of
June 30, 2026
Flow control equipment manufacturer Flowserve (FLS) was a top contributor for the quarter, benefiting from record-breaking demand in the nuclear and data center sectors, as well as a significant deal to transfer all remaining asbestos-related liabilities and insurance assets to an affiliate of Oaktree Capital Management. Power solutions company Cummins Inc (CMI) was also a positive contributor, benefiting from record demand for backup power generators required for massive AI-driven data center expansions. We view CMI as one of the more un-derappreciated AI infrastructure plays. Finally, Steel Dynamics (STLD) benefited from foreign steel tariffs, with both demand and pricing on US-produced steel products providing signifi-cant tailwinds. STLD is one of the primary beneficiaries of "Buy American" initiatives that are fueling a trend towards onshoring of US manufacturing.
The Quarter's Top Detractors
As of
June 30, 2026
Home Depot (HD) was one of the major detractors of performance in 4Q25, as stubbornly high mortgage rates and home price uncertainty caused homeowners to postpone large-scale "big-ticket" projects like kitchens and bathrooms. We continue to like HD as a best-in-class retailer that could benefit from declining interest rates and pent-up demand for remodeling activity. HP Inc (HPQ) also faced a challenging quarter as investors were spooked by a com-bination of subdued demand and pricing and rising component costs (particularly memory costs), resulting in margin compression. While this position has not performed as we had hoped, we think its 14% free cash flow yield, 5.4% current yield and its massive buyback pro-gram make the shares attractive. Finally, Garmin Ltd (GRMN) struggled due to a combination of slowing topline growth and margin compression as the company ramped its R&D spend. We are hopeful that the launch of the Fenix 8 Pro and new AI-driven health features announced at the CES in January will reignite growth.
About the Top Guns Award
Alpine Saxon Woods’ Dividend Strategy earned PSN Top Guns, 4-Star. 5-Star, and 6-Star awards. Alpine Saxon Woods pays no compensation to PSN for its consideration for the Top Guns, but does pay a nominal fee for the rights to use the PSN Top Gun name and badges in its own marketing. These Top Gun ratings are awarded based on performance reported by Alpine Saxon Woods to PSN. Through a combination of PSN’s proprietary performance screens, the PSN Top Guns awards investment strategies in six categories across more than 75 universes. PSN employs proprietary benchmark and peer group metrics, including correlation, volatility, performance, and information ratio, for the All Cap Value style as described below.
4-Star Top Gun: had an r-squared (r2 or correlation squared) of 0.80 or greater relative to PSN’s All Cap Value style benchmark for the recent five-year period. Moreover, the strategy’s returns exceeded the style benchmark for the three latest three-year rolling periods and was among the top ten returns for the latest three-year period.
5-Star Top Gun: meets the above benchmark correlation and relative returns criteria as well as overall volatility (as measured by standard deviation) equal to or less than the median standard deviation for PSN’s All Cap Value peer group for the prior five-year period. The top ten returns for the latest three-year period among qualifying All Cap Value peers then become the 5 Star Top Guns.
6-Star Top Gun: meets the above benchmark correlation, relative return, and volatility criteria above and represent the top ten information ratios among qualifying All Cap Value peers for the latest five-year period.
The information contained on this website is the property of Alpine Saxon Woods LLC (“ASW”) and is being provided for information purposes only. This website and the information contained herein is not an offer to sell or the solicitation of an offer to buy any securities or instruments, or a recommendation, representation of suitability or endorsement of any security or investment. Since ASW cannot anticipate all the requisites of each individual viewer, there is no consideration given for the specific investment needs, objectives or risk tolerance of any viewer. ASW’s services are primarily provided through separately managed accounts. Some ASW investment products may be available only to certain “qualified investors”—that is, investors who meet certain income and/or investable assets thresholds – and are offered only pursuant to confidential offering documents. Before making any investment decision, individuals should consult their own advisors, including legal and tax advisors.