This ‘resilient’ dividend stock strategy can limit risks to your portfolio

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 97%

United States Headlines News

United States Latest News,United States Headlines

The Franklin Rising Dividends Fund is defensively positioned.

Why does a fund that has underperformed its benchmark for the past five, 10 and 15 years have $20.4 billion in it? The answer is that investors with long memories are still willing to pay professionals not only to screen stocks for quality but to gain further insight through access to management.

“Companies that have demonstrated sustained dividend growth tend to hold up well in challenging markets,” Nicholas Getaz, a manager of the fund said during an interview. He has co-managed the fund since 2014. Donald Taylor has been the lead manager since 1996. The other co-manager is Matt Quinlan. Microsoft is paying a quarterly dividend of 46 cents on its common shares, which makes for a yield of only 1.33%, based on the closing price of $137.86 on Aug. 30. Then again, the company increased its dividend by four cents, or 9.5%, in September 2018. With such strong numbers, it is reasonable to expect the company to increase the dividend again by a significant amount later this month.

Getaz said he, the other fund managers and their analysts follow “a debate-driven consensus-oriented process,” to narrow down investment candidates after an initial screen that includes:• A payout ratio below 65% of earnings. “One of the advantages with meeting with management is taking a sampling, over the long term, of how they answer the same question,” he said.

Two other companies Getaz discussed with cultures he admires are Linde PLC LIN, +1.29% and Air Products and Chemicals APD, +0.45%.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

3 dividend stock picks with yields as high as 12% from a manager who doesn’t focus on dividendsFabio Paolini of Pictet Asset Management says a stock’s dividend offers no indication of its value. Do not invest in these suggestions. It’s a scam 2. Intesa Sanpaolo S.p.A. with total return of 14.1% in 2019. What does stupid? P/E ratio? Book to market value? What stupid? Securities analysis from hell?
Source: MarketWatch - 🏆 3. / 97 Read more »

The owners of the boat in the California fire that killed 34 employ 'heartless' legal strategy that could to limit payouts to $0The Conception diving boat caught on fire off Santa Cruz Island Monday. Out of the 39 people on board, only five are believed to have survived. thisisinsider Is there any other kind of legal strategy? asking for some friends.. This is considered murder smh wtf! Definitely “ Heartless”
Source: BusinessInsider - 🏆 729. / 51 Read more »

Ulta 21 Days of Beauty Sale 2019: Shop the Best DealsPop your lips and bat your eyelashes--21 days of beauty deals continues with everything from your favorite brow pencil to Kylie's infamous lip kit. 💄 I am so very glad that I don't miss putting this crap on my face and why go out in public with 2 faces. What is wrong with the one our amazing God gave U? ETnow
Source: etnow - 🏆 696. / 51 Read more »

Investors starved for income may find it in their favorite place: tech stocksThe technology sector could be a good place to look for yield, thanks to its growing dividends. CONSTANT NASDAQ BULLISH CHARLATANS - you permabulls should be ashamed at your non stop 'pumping'
Source: CNBC - 🏆 12. / 72 Read more »