Companies with a history of consistent dividend payments are generally known to excel in allocating capital. Yet, all of them are susceptible to falling out of favor with investors based on short-term results. At Franklin Equity Income Fund, Alan E. Muschott and a team of analysts screen for out-of-favor dividend-paying

Intrinsic value is a key word for Rick Snowdon and Austin Hawley, portfolio managers of Diamond Hill Select Fund. With a long-term horizon, they have the diligence to look for undervalued securities and the patience to hold them until price and value meet. Starting with a broad universe of the

As fund managers focus on generating returns for investors, few take into consideration the importance of after-tax returns. Paul Goldwhite and the team of analysts at the AMG FQ Tax-Managed U.S. Equity Fund put emphasis on generating alpha and after-tax returns by managing dividend yields, harvesting losses and deferring capital

Companies with operating policies that take into account the well-being of employees and environment may have something going for them. Happier employees tend to be more productive, and an environmentally friendly corporate culture may serve as a key advantage too. In the Parnassus Fund, Jerome Dodson maintains a concentrated portfolio

Historically, dividends have been up to 40% of total return, so companies with the abilities to pay and grow dividends are quite important to shareholders. However, many of them are likely to forget that this dividend-paying ability is driven by a company’s cash flow. At the helm of Fidelity Equity

Company fundamentals change slowly while investor perceptions can change in a matter of hours. At the same time most portfolio managers spend an enormous amount of resources discovering stock ideas with little understanding of how long they are prepared to hold. Michael Levine, who is at the helm of the

When high-quality companies fall out of favor, investors are quick to sell first and ask questions later, thus creating opportunities for investors with longer-term horizons. Susan Kempler at TIAA-CREF Growth & Income Fund has a steady focus on detail and a patient approach to investing. She utilizes a bottom-up approach

A company with a track record of allocating capital to grow its business and pay dividends is a typical example of an attractive investment. However, such stocks can be even more rewarding to investors if they are purchased at the right price. John Carey has a 25-year record of navigating

Although dividends form a significant part of total return, many investors underestimate the potential of companies to raise dividends. Dividend growers, especially those with the ability to increase dividend more than 5% a year, are the starting point in the investment process of Robert D. Frazier, portfolio manager of the

Historically, dividends are responsible for at least one-third of the total return of the S&P 500 Index. It is hardly surprising as companies with a history of growing dividends adhere to a philosophy of operating under a constraint, which leads to better capital allocation in the long run. Art Barry