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The Eagle Growth & Income team identifies investment opportunities based on the following criteria:
Income
- Yield or dividend growth at or above the S&P 500 Index
- Demonstrated commitment to paying and increasing dividends
Growth
- Dominance in expanding industry
- Growth rate greater than inflation
Stability
- Free cash flow and shareholder-oriented management
- Stock price below estimated intrinsic value
Sell discipline
- Price appreciation near or above sustainable level
- Deterioration of company fundamentals, indicative of dividend cut
- Occupation of too large a portion of total portfolio
- Development of more attractive investment opportunity
Investing is based on the expectation of positive price performance due to continued earnings growth or anticipated changes in the market or within the company itself. However, if a company fails to meet that expectation or anticipated changes do not occur, its stock price may decline. Moreover, as with all equity investing, there is the risk that an unexpected change in the market or within the company itself may have an adverse effect on its stock. The biggest risk of equity investing is that returns can fluctuate and investors can lose money. Because the fund normally will hold a focused portfolio of stocks of fewer companies than many other diversified funds, the increase or decrease of the value of a single stock may have a greater impact on the fund's net asset value and total return.
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