Dividend Portfolio
Part of the Azzad Ethical Wrap Program
A comprehensive halal wealth management solution for high net worth clients, organizations, and business owners.
Why Dividend Investing?
Dividends are payments that companies make to their shareholders on a regular basis, usually once per quarter.
Dividend payments are usually made in cash and represent a portion of the company’s profits, which investors earn as shareholders in that company.
Companies still focused on growing might choose to invest profits back into the company to fuel its expansion rather than paying dividends. Companies that pay dividends are usually more stable, established businesses with consistent cash flow.
If you’re interested in investing in dividend-paying stocks but want to make sure you avoid companies that deal in unethical business activities, consider Azzad’s dividend portfolio as a socially responsible way to track a dividend index.
Meet the Manager
Azzad Asset Management is a registered investment adviser headquartered in the suburbs of Washington, D.C.
Azzad is committed to managing clients’ money according to a socially responsible investment philosophy based on faith-based values and incorporating a rigorous and disciplined investment approach.
Azzad believes that companies operating in ethical lines of business offer relatively less business risk and are in a better position to thrive in the long-term.
The firm’s proprietary screening process allows the manager to prudently manage client assets in a manner consistent with their values.
Investment Approach
Azzad’s dividend portfolio seeks to achieve investment returns that correspond to the S&P 500® Dividend Aristocrats® Index after screening for Azzad’s ethical screens.
This portfolio is passively managed according to its benchmark.
The S&P 500® Dividend Aristocrats® Index captures sustainable dividend income and capital appreciation potential, which are both key factors in investors’ total return expectations. Since 1926, dividends have produced roughly a third of total equity return, while capital gains have contributed the remaining two thirds.
Companies included in the portfolio have increased their dividends annually for the last 25 consecutive years, demonstrating their commitment to shareholders. They have a market capitalization of at least $3 billion and have an average daily value traded of at least $5 million over the last 3 months. They must also pass Azzad’s socially responsible investment criteria.
The portfolio is sought after by investors who are looking for investment income in the stock market. It generally holds fewer than 40 U.S. domestic stocks and is designed to have a relatively low turnover.
Investment Process
When building this portfolio, Azzad screens the companies in the S&P 500® Dividend Aristocrats® Index through its proprietary halal investing software, first removing stocks with unacceptable primary business activities.
The remaining stocks are evaluated according to several financial ratio filters to remove companies whose debt or interest-income run afoul of halal screens.
Access This Strategy
Our dividend portfolio is offered through the Azzad Ethical Wrap Program.
The minimum initial investment for the program is $500,000.
If you’d like to learn more, please contact us and one of our financial advisors can help you decide if the wrap program is a good fit for your needs.
