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Charles Schwab Recommends ThomasPartners – Is It a Good Investment for You?

Posted by WrapManager's Investment Policy Committee
January 9, 2014

Many investors are increasingly seeking out alternative income sources such as dividends. Perhaps recognizing this, Charles Schwab strategically acquired dividend money manager ThomasPartners and their Dividend-Driven Income strategy to provide this investment option to their clients.

ThomasPartners has appeared on our “Top Ten Most Researched Money Managers”, perhaps due to their recent affiliation with Schwab. Is ThomasPartners Dividend strategy a good investment for you?

(WrapManager is not affiliated with ThomasPartners, and it has not approved for use nor entered into contracts with ThomasPartners. This is for informational and comparison purposes only.)

ThomasPartners Dividend-Driven Income’s Investment Goals

ThomasPartners’ Dividend-Driven Income strategy seeks to provide current income, increasing portfolio income, and capital appreciation.1 Specifically, they specialize in the “construction of growth-oriented investment portfolios that generate significant current dividend income streams and are actively managed to generate significant levels of annual aggregate portfolio dividend income growth.”2

Evaluating ThomasPartners’ Dividend Yield

If you’re interested in obtaining a year by year performance analysis of ThomasPartners Dividend-Driven income strategy, click here.

Overall, the ThomasPartners Dividend-Driven Income strategy performance has been largely in-line with its benchmark. Since the strategy’s inception, it has managed to beat its benchmark just under half the time on a quarterly basis (18 out of 42), while providing a reasonable dividend yield.1 

As of September 30, 2013, ThomasPartners’ Dividend strategy had a dividend yield of 3.12%1 compared to 3.70% on the Dow Jones U.S. Select Dividend.3 This means the ThomasPartners dividend strategy produced slightly lower income streams through dividends than its benchmark.

Is ThomasPartners’ Dividend-Driven Income Strategy a Good Investment for You?

Choosing whether to invest in a dividend-focused strategy depends on a number of variables and questions specific to you. What are your long-term goals? What are your available cash flow sources and cash flow needs over time? What does your overall asset allocation look like? What are your dividend income options? What percentage of your total portfolio should you consider for a dividend-focused strategy?

One of our WealthManagers can help you address these questions. We can help you understand how a dividend-focused strategy may fit as a piece of your overall portfolio, and then help you evaluate the various money managers that specialize in this approach.

Give one of our WealthManagers a call at (800) 541-7774 to learn more. Alternatively, you can request more information about ThomasPartners here.


Request More Information on Thomas Partners



1 PSN Enterprise

2 ThomasPartners

3 Federated Investors 

Thomas Partners

Thomas Partners Schwab