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Dividend Income Program


Successful investors understand that dividends are a key component of a portfolio’s total return. This is particularly true during periods when the stock market is either stagnant or declining. With interest rates near historic lows, investors can no longer count on money market funds or bank CDs to generate reasonable returns. Therefore, dividends may also be a good alternative or complement to interest earned on fixed income securities. Finally, dividends may be taxed at a lower rate than interest income, increasing your overall portfolio return.

Who Should Invest in Borthwick’s Dividend Income Program?

You are a long-term equity investor but want to have a portfolio which is less volatile than the general market.

You are still working but want to generate additional current income.

You are retired or close to retirement and need a regular, fairly dependable income stream to live on without having to liquidate your principal investment.

Dividends or Interest – What’s the Difference?

Interest is paid on debt securities/bonds. Typically, the holder of the debt security receives the same amount of interest every month or quarter. This can present a problem if rates rise as the bond holder’s interest payment may not keep pace with inflation.

A dividend is a payment made to shareholders from the profits of a corporation. While companies are not required to pay dividends, management will often choose to do so as an incentive to purchase shares in the company. Over time, many successful companies periodically increase their dividend payout to shareholders as the profits of the company rise. As a result, a well-structured dividend portfolio can provide an increasing stream of income over time.

Why Should Borthwick Manage My Dividend Portfolio?

By utilizing Borthwick Associate’s dividend portfolio program, investors can take comfort in knowing that their assets are being professionally managed by a firm which has guided investors for thirty years. Our research staff has access to an extensive database which provides timely information regarding corporate earnings and dividends. We strive to identify companies which will not only maintain but also increase their future dividend payout.

How Will My Dividend Income Portfolio Be Structured?

Borthwick Associates will design a portfolio which consists of approximately fifteen to twenty-five dividend stocks. In order to keep the portfolio diversified we will have representation from several different industry sectors. Your portfolio will be closely monitored and rebalanced as needed. Through active management our professional staff can quickly respond to changing market dynamics.

Clients can choose to have their portfolio income reinvested in the account or we can set-up a program to have your dividend income paid out to you on an annual, quarterly or monthly basis.

Fidelity Investments is the custodian for the majority of our client accounts. Clients will receive monthly statements and transaction confirmations directly from Fidelity. Additionally, you will receive a quarterly performance report from Borthwick Associates.

What is the Management Fee?

Annual Advisory Fee Schedule

$250,000 – $1 million 1.25% of assets

$1 million – $2 million 1.00% of assets

$2 million – $3 million 0.75% of assets

Assets over $3 million 0.50% of assets

The fee is billed quarterly and can be conveniently deducted directly from your dividend portfolio account.