Skip to content
    1. Overview
    2. Alternative Managers
    3. Consultants
    4. Corporations
    5. Family Offices
    6. Financial Advisors
    7. Financial Institutions
    8. Individuals & Families
    9. Insurance Companies
    10. Investment Managers
    11. Nonprofits
    12. Pension Funds
    13. Sovereign Entities
  1. Contact Us
  2. Search
Save to bookmark
Active Equity

Quality Dividend Focus Defensive

Designed to deliver an elevated dividend yield relative to the broad market while taking a defensive portfolio approach and investing in high quality companies to further enhance income consistency and stability.

Our Philosophy

We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.

Overview

Quality That Pays Dividends

Investors trying to enhance their portfolio income in the equity market may be exposing themselves to undesired risks, such as large sector concentrations, or too much overall risk. This strategy seeks to deliver more consistent outcomes by taking a more defensive approach and targeting high-quality, high-dividend paying companies while controlling for undesirable portfolio risks.

Benefits

Seeks Steady Growth through Attractive Risk-Adjusted Returns

High Dividend Yield, Targeting Up to Twice the Benchmark Yield

Cost-Effective Active Management

This is a carousel with slides. Use Next and Previous buttons to navigate.

Slide 1 of 4

How it works

Target Quality and Income

Rank and select companies with high quality characteristics, eliminate non-dividend payers.

1 / 4

How it works

Establish Risk-Controls That Limit Unrewarded Exposures

Maintain benchmark weights on regions and sectors, where taking active risk often doesn’t pay off.

2 / 4

How it works

Construct a Portfolio That Targets Yield and Quality in a Controlled Manner

Balance risk, return, dividend yield, quality and transaction costs.

3 / 4

How it works

Optimize Portfolio to Key Objectives

A final stringent review and optimization is conducted to verify the portfolio maximizes exposure to high quality and high income characteristics and seeks to minimize any excess risks that don’t contribute to outperformance.

4 / 4

Who it's for

Investor Seeking a Defensive Portfolio Approach

Diversification across the investment universe designed to add value over full market cycles.

Investors Seeking Equity-Based Portfolio Income

Strategy targets yield of 1.5x – 2.0x the benchmark.

Investors Seeking Cost-Effective Active Management

A systematic approach enables us to target key sources of portfolio outperformance, in a cost‑effective manner.

Quality Dividend Focus Defensive Documents

Literature

Related Products

Quality Large Cap Core

Designed to deliver outperformance by investing in a diverse portfolio of undervalued, high quality companies with positive momentum.

Read Now
Save to bookmark

Quality Low Volatility

Built in an attempt to strengthen a portfolio’s equity allocation by seeking to deliver more consistent equity returns, targeting 20% to 30% less volatility than the broad market.

Read Now
Save to bookmark

Quality U.S. Value

Potential to deliver outperformance at lower volatility than the benchmark through the selection of value companies with a quality tilt toward higher cash flows, profitability and return on capital.

Read Now
Save to bookmark

Quality ESG

Designed to outperform by investing in high quality companies that are well positioned to manage their ESG risks and opportunities relative to their industry peers.

Read Now
Save to bookmark

Related Content

Slide 1 of 3
  • 2025 Global Investment Outlook
    Research
    Save to bookmark

    2025 Global Investment Outlook

    Our investment team analyzes the key market trends that could impact investors’ portfolios.
    Read Now
    Save to bookmark
  • Seizing the Opportunity in Emerging Markets
    Point of View
    Save to bookmark

    Seizing the Opportunity in Emerging Markets

    With attractive valuations, emerging market equities look like a good opportunity. A factor investing strategy, designed well, may enhance performance and help manage some key risks.
    Read Now
    Save to bookmark
  • Volatility Strikes in September: Our Thoughts
    Point of View
    Save to bookmark

    Volatility Strikes in September: Our Thoughts

    We think the decline in the S&P 500 Index on Tuesday may be more technical than fundamental.
    Read Now
    Save to bookmark
  • 1 / 3

    Contact Us

    Interested in learning more about our investment strategies? 

    All securities investing and trading activities risk the loss of capital. Each portfolio is subject to substantial risks including market risks, strategy risks, advisor risk, and risks with respect to its investment in other structures. There can be no assurance that any portfolio investment objectives will be achieved, or that any investment will achieve profits or avoid incurring substantial losses. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Risk controls and models do not promise any level of performance or guarantee against loss of principal. Any discussion of risk management is intended to describe NTAM’s efforts to monitor and manage risk but does not imply low risk. This information is general in nature and should not be construed as tax advice. Please consult a tax advisor or professional as to how this information may affect your particular circumstance.

     

    Environmental, Social and Governance (ESG) investing involves certain risks because the methodology of an underlying index selects and assigns weights to securities of issuers for nonfinancial reasons, a strategy may underperform the broader equity market or other strategies that do not utilize ESG criteria when selecting investments. The companies selected by an index provider as demonstrating ESG characteristics may not be the same companies selected by other index providers that use similar ESG screens. In addition, companies selected by an index provider may not exhibit positive or favorable ESG characteristics. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on a strategy’s ability to invest in accordance with its investment policies and/or achieve its investment objective.

     

    Not FDIC Insured | May Lose Value | No Bank Guarantee

    Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.