Welcome back to another Moby Flagship Quantitative Dividend Portfolio update!
And let’s just say, if you’ve been following along, you’re probably pretty happy right now. Since our last rebalance in September 2024, the portfolio has delivered a standout performance, comfortably beating both the market and our benchmark ($SPYD).
We’ve always said dividend investing is about more than just collecting passive income -- it’s about owning companies with real staying power, strong cash flows, and the ability to grow dividends over time. This quarter was a perfect example of that in action.
Market Recap: What’s Been Happening?
A lot has changed since our last update, but through it all, dividend stocks have remained one of the market’s most resilient plays. Here’s what’s been driving the action:
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Rates, Rates, and More Rates: The Federal Reserve’s decision to hold steady on interest rates gave a much-needed boost to dividend-paying stocks, particularly in financials and real estate. Investors love dividends when rates stabilize because they provide a reliable yield without the fear of getting undercut by rising bond rates.
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Investors Playing Defense: With uncertainty still in the air, dividend stocks became a go-to safe haven. Cash-flow-rich businesses in healthcare, financials, and utilities saw renewed demand as investors shifted toward stability instead of chasing risky, high-growth plays.
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Energy’s Wild Ride: The energy sector had a bumpy few months, with oil prices swinging up and down. Some of our holdings weathered the storm well, while others felt the pressure. But as always, our diversified approach helped balance things out.
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Earnings Surprises: The best part? Many of our portfolio names crushed earnings expectations. Solid revenue growth, healthy dividend hikes, and strong guidance all helped fuel this quarter’s outperformance.
Looking Ahead:
With the macro picture steadier than it was a few months ago, dividend stocks are well-positioned for continued strength. The market might be unpredictable, but the companies we invest in aren’t just surviving—they’re thriving.
Up next, we’ll break down just how well the portfolio performed and call out the biggest winners. Spoiler: It was a great quarter.