To build our dividend growth investing portfolios, we start with a disciplined framework. Every holding begins on a candidate list, is assigned a quality rating, categorized as Core or Non-Core, and given clear position sizing guidelines. The chart below reflects our current thinking and may change as conditions evolve. Always check the “Last Updated” date under the title for the most recent version.
Quality drives everything we do. We deliberately own fewer stocks, allowing for higher conviction, tighter monitoring, and better decision-making. Holdings are split into two groups. Core companies are essential to the economy, exhibit durable business models, and follow shareholder-friendly dividend policies. Non-Core companies are typically smaller, faster-growing businesses that complement the portfolio with higher growth potential.
Position sizing reflects this distinction. Core holdings are capped at 8% of the portfolio, while Non-Core holdings are capped at 5%. This structure allows us to own roughly 15 to 20 high-quality businesses while concentrating capital in the safest and most predictable opportunities. The result is a portfolio anchored by stability, with selective exposure to growth.
Minimum position sizes matter just as much. They protect us from overcommitting capital when fundamentals or valuation are temporarily unfavorable. Our minimum position size ranges from 1% to 4%, depending on category. This ensures that when a company meets our quality standards, we maintain exposure and can build the position deliberately over time as the opportunity improves.
Paid subscribers receive DGI Alerts whenever we initiate or add to a position in the model portfolio. Each alert includes the execution price and recommended position size so you can follow the process with clarity and discipline.
Here is the 2026 version of The List with our position sizing framework:
