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☆ Boost returns in your 60/40 portfolio with 'the magnificent others,' AllianceBernstein says
▼ + stars: | 2024-07-01 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Investors seeking to boost returns in their 60/40 portfolio should look to what AllianceBernstein calls "the magnificent others." "If you're finding companies that are giving you dividend growth rates of anywhere say from 10% to 12%, well north of inflation, that has a nice compounding effect," he said. What makes these dividend-paying stocks appealing is that free cash flow is expected to grow roughly 7% over the next five to six years, he said. Instead, investors should focus on companies that have free cash flow, a strong balance sheet and are competitively positioned, he said. Within dividend-paying names, Czaicki sees three specific areas of opportunity: energy transition and security, supply chain security, and national defense and cybersecurity.

Persons: Walt Czaicki, Czaicki, They're Organizations: Federal Reserve, Tech, Income

☆ These robust companies may be primed to start offering a dividend, Wolfe says
▼ + stars: | 2024-05-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Shares are up 13% in 2025, and the company has an estimated 2024 free cash flow to firm yield of 3%, according to Wolfe's analysis. Analysts also generally like the stock, with 11 out of the 14 analysts covering the name rating it a buy or strong buy, according to LSEG. Wolfe also called out O'Reilly Automotive as a potential dividend initiator, highlighting the company's estimated free cash flow to firm of 3% in 2024. Shares are up a mere 1.5% in 2024, but the name remains liked by the Street, rated a buy or strong buy by 64% of the analysts covering it, per LSEG. Estimated free cash flow to firm yield comes in at 7% for 2024, per Wolfe's analysis.

Persons: Wolfe, Alphabet's, Charlie Gaffney, Eaton Vance, we're, there's, Chris Senyek, Skechers, O'Reilly, TD Cowen, Max Rakhlenko, Morgan Stanley Organizations: Wolfe Research, Morgan Stanley Investment Management, CNBC, Equity Income Fund, UBS, O'Reilly Automotive, PayPal, Mattel

☆ Want steady, passive income? Buy these dividend stocks with higher yields, Wall Street says
▼ + stars: | 2024-02-21 | by ( Weizhen Tan | ) www.cnbc.com time to read: +4 min

Dividend stocks came under the spotlight after Meta unexpectedly announced a dividend for the first time. BofA has also been bullish on dividend stocks lately, saying investors may flock back to such stocks for income if yields fall this year, in turn driving up this segment of stocks. Wall Street and other pros share their tips on how to pick good dividend stocks and what names will generate sustainable income. In fact, using that strategy mitigates the risk of relying only on dividend income if higher rates affect dividend distributions, according to Stutland. "This combination provides a buffer against future interest rate hikes and offers the possibility of capital appreciation alongside dividend income."

Persons: Meta, BofA, Brian Stutland, Stutland, Goldman, Stocks, It's, — CNBC's Michael Bloom Organizations: CNBC Pro, Morningstar, Walmart, Target, Depot, Verizon, Treasury

☆ This type of ETF offers portfolio income along with some complexity. How to determine if it’s right for you
▼ + stars: | 2024-02-15 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

These so-called derivative income funds — which include popular covered-call offerings such as the JPMorgan Equity Premium Income ETF (JEPI) — gathered $22 billion in flows last year , according to Morningstar. "I don't see volatility drying up, especially with where inflation is and this being an election year," said Barry Martin, portfolio manager of the Shelton Equity Income Fund (EQTIX) . "Instead of owning a covered call fund, you can buy a dividend fund that's paying 3% in dividend income," said John Rekenthaler, vice president, research at Morningstar. Be tax conscious: Derivative income funds can bring tax complexity because they can spin out income that's subject to short-term capital gains treatment. Comparison shop: Morningstar labels covered call funds and their ilk as "derivative income funds," but each offering will have its quirks, and this could affect its risk-return profile.

Persons: —, Rob Schultz, JEPI, there's, Barry Martin, EQTIX, Martin, Schultz, Ashton Lawrence, Lawrence, John Rekenthaler Organizations: JPMorgan, Shelton, Income, CFP, Mariner Wealth Advisors, Investors, Morningstar Locations: Encino , California, Greenville , South Carolina

☆ Retirees are about to shift money into equity income, boosting these stocks, says Bank of America
▼ + stars: | 2024-02-05 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

Money market fund assets had $6 trillion as of Jan. 31, according to the Investment Company Institute . "Retirees have shifted assets to cash for income, but an easing cycle could drive them to equity income funds. AT & T has the highest current dividend yield of those six stocks, at more than 6%. However, Bank of America projects big dividend hikes in the coming years, and the stock is already up 15% in 2024. It is unclear how much of the cash parked in money market funds will flow back into the stock market.

Persons: Savita Subramanian, Ford, Morgan Stanley Organizations: Bank of America, Investment Company Institute, Dow Inc, Simon Property Group, Merck, Simon Property, Ford

☆ These dividend-paying stocks offer attractive income and a good opportunity, this portfolio manager says
▼ + stars: | 2023-08-18 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

However, they may be missing out if they are bypassing dividend stocks altogether, according to Neuberger Berman senior portfolio manager Sandy Pomeroy, who manages the Neuberger Berman Equity Income Fund (NBHAX) . Right now, dividend stocks haven't been this cheap since the tech boom of the 1990s, Pomeroy said. Dividend stocks have underperformed this year: The SPDR S & P Dividend ETF (SPYD) has a total return of -5% in 2023, per FactSet. In comparison, the SPDR S & P 500 ETF (SPY) has a total return of nearly 15%. Deere, which has a 1.3% dividend yield, reported an earnings and revenue beat before the bell Friday.

Persons: Neuberger Berman, Sandy Pomeroy, Pomeroy, NBHAX, Eaton Organizations: Neuberger, Neuberger Berman Equity Income, Treasury, Neuberger Berman Equity, Caterpillar, Deere, PNC Locations: industrials

☆ This international stock picker beats the market long term by mastering downside risk
▼ + stars: | 2023-08-02 | by ( Sarah Min | ) www.cnbc.com time to read: +6 min

Now the manager of the Goldman Sachs' International Equity Income Fund (GSTKX) , as a young man Deladerriere was surrounded by farmers and government employees, not investors. Deladerriere sought out companies with good business fundamentals, saying many of the firms he invested in back then have survived and are "actually thriving." One was French energy technology provider Schneider Electric, still a holding in his Goldman fund. He landed a research internship at Goldman Sachs Asset Management, and is now a partner and head of international developed markets equity. Good times and bad In 2012, Deladerriere started managing Goldman International Equity Income, a $1.1 billion fund with a five-star rating from Morningstar.

Persons: Alexis Deladerriere, Goldman Sachs, Deladerriere, Goldman, that's, Morningstar Organizations: International Equity Income, Schneider Electric, Ecole Superieure de Commerce de Paris, Goldman Sachs Asset Management, Goldman International Equity, Morningstar, Vinci, Schneider, Stock, Zurich Insurance Group, Singapore Locations: France, French, Europe, Australasia, London, New York, U.S, Swiss

☆ The US stock market rally is unsustainable, but making these 20 international investments can lead to long-term profits, according to 3 fund managers with over $43 billion in combined assets
▼ + stars: | 2023-06-30 | by ( James Faris | ) www.businessinsider.com time to read: +9 min

International stocks have underperformed for over a decade, while US growth names took off. However, foreign companies have attractive relative valuations and earnings growth. Why foreign stocks are more than just a good dealAnyone bullish on international stocks will almost always point to their valuations relative to US companies. Investors can get downside protection in this uncertain environment by buying international stocks that are high quality and can generate their own growth, Deladerriere said. And in addition to their rising earnings growth, the fund manager noted that the two pay sizable dividends.

Persons: they've, Nick Paul, Paul, Steve Gorham, who's, Gorham, Wes Crill, Crill, isn't, Alexis Deladerriere, Deladerriere, there's, Goldman, haven't, He's, it's Organizations: MFS Investment Management, Value, Vanguard, Index, Yahoo Finance, Dimensional Fund Advisors, Fund, Goldman Sachs International Equity Income, Goldman, Asset Management, Goldman Sachs, Management, HSBC, BNP, Schneider, MFS, Hitachi Locations: Europe, Asia, BlackRock, weightings, Gorham, Japan, London, Paris, Spanish, Ukraine, France, Australia, Taiwan

☆ Woodford investors offered up to $292 mln over fund failure
▼ + stars: | 2023-04-20 | by ( Kirstin Ridley | ) www.reuters.com time to read: +2 min

LONDON, April 20 (Reuters) - Investors in the failed equity income fund run by fallen star stock picker Neil Woodford have been offered up to 235 million pounds ($292 million) in redress after a British regulatory investigation. The failure of the Woodford fund, which managed billions of pounds before it was suspended amid a political and public outcry in 2019, trapped 300,000 investors, triggering the FCA investigation and three London investor lawsuits. Woodford, once one of Britain's most high-profile investors, was criticised for holding a large number of hard-to-sell illiquid assets. He suspended the fund after struggling to meet redemption requests following months of underperformance. The proposed redress falls short of a scheme suggested by the FCA, under which it wanted WEIF investors to receive 298 million pounds.

☆ Why a European stock index is crushing its US peers
▼ + stars: | 2023-04-14 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

By comparison, the Dow Jones Industrial Average in the United States has climbed 2%. Those “growth” stocks gave investors a stake in firms that were on track to expand their businesses quickly and generate hefty returns. Now, investors are more drawn to “value” stocks: companies thought to be trading at a discount based on their financial performance. That’s been a “near-perfect combination” for European stocks to beat their US peers, he added. Economists at the Fed predict the United States will fall into a “mild” recession as a result of the recent banking crisis.

☆ This fund manager has never owned a bank stock — and reveals what he looks for instead
▼ + stars: | 2023-03-24 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

Investors have fled bank stocks in droves since a crisis in the sector broke out earlier this month. Fund manager Ian Mortimer is not a fan — and said he has never owned a banking stock in any of his funds. If you think about that as your starting point, the vast majority in the banking sector do not pass those criteria," he said. "The banking sector has been an area that often pays quite high dividends — sort of attractive from that perspective. So, it's a ... theory that in distress, the banking sector will reduce or potentially cancel their dividends," Mortimer added.

☆ CNBC Pro Talks: Dividends or growth stocks? Fund manager Ian Mortimer has strategies for both
▼ + stars: | 2023-03-21 | by ( Cnbc.Com Staff | ) www.cnbc.com time to read: +2 min

Fund manager Ian Mortimer will explain how he selects high-yielding companies and identifies growth stocks while avoiding the hype. He joined Guinness Global Investors in 2006 and manages the Guinness Global Equity Income Fund and the Guinness Global Innovators Fund. Join CNBC Pro Talks on Wednesday, March 22 at 6:30 a.m. GMT / 2:30 p.m. SGT / 2:30 a.m. He joined Guinness Global Investors in 2006 and manages the Guinness Global Equity Income Fund and the Guinness Global Innovators Fund. Join CNBC Pro Talks on Wednesday, March 22 at 6:30 a.m. GMT / 2:30 p.m. SGT / 2:30 a.m.

☆ Stock pickers reckon it's time to move on from central banks
▼ + stars: | 2023-03-06 | by ( Naomi Rovnick | ) www.reuters.com time to read: +5 min

LONDON, March 6 (Reuters) - Stock market investors are calling time on the idea that the Federal Reserve, and other major central banks, have their back. The Nasdaq (.IXIC) is still up about 12% year-to-date and a sub-index of European tech stocks has gained 15% (.SX8P). A Reuters poll of 300 global asset managers last month showed 70% of those surveyed believed these so-called value stocks would outperform this year. Another sign investors are turning towards value shares is the reduced premium they are paying for growth stocks. "Central banks will keep rates high."

☆ Buy these 7 value stocks to help your portfolio thrive during 'economic purgatory,' according to the manager of a $17 billion fund
▼ + stars: | 2023-02-25 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Detailed below are seven top stocks to buy now, according to the $17.5 billion value fund manager. The silver lining is that most Wall Street firms think the economy will experience a soft landing, which would be characterized by a mild downturn. This means buying value stocks that will both succeed amid a soft landing, as well as those poised to benefit from the more extreme event of a full-blown recession. Overall, he sees the group as attractively valued, especially in a soft landing scenario. Below are seven of Linehan's favorite value stocks to own in this environment along with the ticker, market capitalization, sector, and thesis for each.

☆ The CIO of a top-performing fund says 2023's stock market will be a tale of 2 halves. He shares the sectors he expects to outperform.
▼ + stars: | 2022-12-27 | by ( Laila Maidan | ) www.businessinsider.com time to read: +5 min

Mike Morey believe the stock market may retest its 2022 lows during the first half of the year. Despite the market chaos, there were two clear standouts that outperformed the broad market: the energy sector and defensive sectors, both of which fall under his area of expertise. The second fund, the Integrity Mid-North American Resources Fund (ICPAX), focuses on the energy sector. He favors defensive sectors such as healthcare, utilities, staples, and traditional telecommunications sectors, which are found in the IDIVX fund. ICPAX's top 10 holdings are Cheniere Energy, Diamondback Energy, OvintivInc., ExxonMobil Corp., Cactu, Nextier Oilfield., Halliburton, Enbridge, Champion, and Marathon Oil.

[1/2] A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London, Britain, October 1, 2008. An investor in Wood Group (WG.L), an oilfield services company, urged the company to buy back some of its own shares to avoid being a target. The domestically-focused FTSE 250 (.FTMC) is down by almost a fifth this year while the internationally-focused blue-chip FTSE 100 (.FTSE) is up 0.8% thanks to a drop in the pound. A currency advantage alone does not necessarily kick-start deals though, according to Owain Evans, co-head of UK M&A for Goldman Sachs. "Large corporates continue to look at 'bolt-ons', where they can draw on existing facilities to do those deals, that's why the mid-cap space is attractive to the strategics in this environment," said Celia Murray, head of UK M&A at JPMorgan.

☆ Matt Quinlan's high-dividend stock funds hold more than $20 billion in investor assets. The Franklin Templeton vet told us where he finds innovators that can deliver big returns.
▼ + stars: | 2022-11-17 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

Historically, big dividend payments have been associated with just a couple of stock market sectors. Franklin Templeton fund manager Matt Quinlan says that's changed in recent years. But inflation and interest rates were extremely low during that period, and it seemed like the growth and spending could go on forever. In a market like today's that's defined by higher interest rates and inflation, which erode returns over time, a solid dividend yield can give buyers a real leg up. He's also run its $24.3 billion Rising Dividends Fund for three years, and its results have been particularly strong across his tenure.

☆ These mutual funds are planning to hit investors with capital gains distributions. How to decide the right move for you
▼ + stars: | 2022-11-11 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

There may be some pain ahead for mutual fund investors in the form of capital gains taxes. "That means funds that have suffered steep falls this year could still distribute capital gains to investors," Welch said. John Hancock will pay double-digit capital gains distributions on several of its funds. Almost a dozen Nuveen funds will make 5% to 10% capital gains distributions, while twice that number of T. Rowe price funds will pay out between 4% and 21%. Passively managed funds may have distributions but they tend to be smaller than actively managed funds, Benz pointed out.

☆ Despite the recent chaos, UK stockpickers are rubbing their hands: Here's what they're buying
▼ + stars: | 2022-11-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The U.K. has been beset by political and economic instability in recent months, but as the investment environment undergoes a fundamental transition, investors see opportunity. These attractive valuations for U.K. stocks were also identified in a note last week by BlackRock Fundamental Equities. "Not only has the U.K. discount widened to a level not seen since 2008, but companies are buying back record amounts of their own shares. This compares to the current yield on UK 10-year gilts of around 4%." GAM holds around 50% of its U.K. equity income portfolio in small and midcap stocks, with a focus on companies with strong competitive moats.

☆ The co-manager of Vanguard's $48 billion income fund has beaten 88% of competitors this year by finding winning dividend stocks using this simple strategy
▼ + stars: | 2022-10-29 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

Vanguard's Sharon Hill has overseen a fantastic performance for her $48 billion income-focused fund. She targets stocks with promising dividend growth, valuations, fundamentals, and sentiment. This market environment may be choppy, but her view is that investing in the right stocks with proven dividend growth is better than letting idle money erode under high inflation. "Dividend growth is one of the few things that has kept up with inflation as you go back and look over the decades," Hill said. "So when you go back and you look at the '70s, '80s — which is the last time you can actually find any notable inflation — what you see is dividend growth pretty much kept pace with it."

☆ Here's how to spot high-quality dividend stocks and manage risk in an unprecedented bear market, according to a 33-year investing veteran who runs a $16 billion fund
▼ + stars: | 2022-10-22 | by ( James Faris | ) www.businessinsider.com time to read: +6 min

John Linehan of T. Rowe Price shared how he manages over $16 billion in assets. John Linehan, the chief investment officer for equities at T. Rowe Price, has encountered plenty of different investing landscapes in his 33-year career. Linehan, who manages over $16 billion in assets in the T. Rowe Price Equity Income Fund (PRFDX), is currently attempting to thread the needle between playing offense and defense. High, reliable dividend yields are vital to the T. Rowe Price Equity Income Fund, Linehan said, but the size of the quarterly payment is far from his only consideration on that front. "We're looking for companies that have both an attractive yield but also attractive attributes beyond the yield," Linehan said.

☆ Australia's Link Administration plans to divest UK-based Link Fund Solutions
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +1 min

Oct 20 (Reuters) - Link Administration Holdings Ltd (LNK.AX) said on Thursday it will explore options to divest its Link Fund Solutions business, months after Britain's financial regulator said it may fine the unit in a probe relating to a now-defunct fund. Link Administration's proposed A$2.47 billion ($1.55 billion) deal to be acquired by Canada's Dye & Durham (D&D) (DND.TO) fell through a month ago, after a local court denied approval, citing failure to meet key conditions. Register now for FREE unlimited access to Reuters.com RegisterThe unit is also being sued in the UK for up to 100 million pounds by claims management firm RGL. read moreThe FCA did not immediately respond to a request for comment on the potential divestment of the Link unit. Link Administration is currently is talks with D&D in relation to a revised bid, which could see the share registry firm sell its corporate markets and banking segment for A$1.27 billion.

RGL is also suing Link Fund Solutions (LFS), the fund's authorised corporate director, and said its claim could top 100 million pounds ($112 million). Hargreaves declined to comment and LFS did not immediately respond to a request for comment over the weekend. But it said last month it could fine LFS 50 million pounds and order a 306 million pound redress scheme over its management of the fund. Law firms Leigh Day and Harcus Parker have each already filed claims against LFS on behalf of around 13,000 and 7,000 investors respectively. They have expressed hope that they would be appointed joint claims managers at a December court hearing.

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