If you own dividend-paying stocks or funds that invest in them, now might be a good time to review your strategy. Fund managers see a shift coming as the Federal Reserve's quantitative easing winds down. Through May 31, the average equity-income fund was up 14.07% this year, according to Lipper Inc. That was neck-and-neck with the average U.S. diversified stock fund's 14.08% gain. Over the trailing three years, equity-income funds' average annual gain was 15.88% vs. 13.97% for U.S. diversified stock funds.
John Carey, manager of $1.4 billion Pioneer Equity Income Fund , favors companies that have strong free cash flow, strong balance sheets and histories of raising dividends. The Fed will raise rates when economic growth reaches certain thresholds. That will help banks like USBancorp (USB) and PNC Financial (PNC), Carey says. "They're large, domestically focused banks, selling at reasonable prices with potential for earnings growth when there's growth in the economy and in housing," he said. In the technology sector, Carey likes Automatic Data Processing (ADP). The payroll services provider can benefit from higher interest rates.
Source: Investors.com
Related Articles:
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- 9 High-Yield Stocks With A Low Price To Book
Where Fund Managers Find The Best Yield
Posted by D4L | Monday, June 24, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
While there’s nothing quite as exciting as betting everything on a hot growth enterprise, prudent investors may want to consider the best di...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.