Top Dividend Manager Talks Strategy

T. Rowe Price’s Tom Huber, whose Dividend Growth fund is in the top 13% of funds in its category over the past five years, according to Morningstar, says that tax increases associated with the fiscal cliff aren’t reason to avoid dividend-paying stocks. “There is a lot of discussion and worry [about the tax hikes] more than I think it deserves,” Huber tells “Higher tax rates are not good. But I think [these stocks] have been shown to work over time.” While consumer staples, utilities, financials, and telecom have traditionally been areas to find strong dividend plays, Huber says that’s changing, […]

Contrarian Indicators Flashing Buy Signals

John Buckingham of Al Frank Asset Management and The Prudent Speculator newsletter says that, as a contrarian, he’s been seeing a number of encouraging signs recently. “Our market outlook as we head into 2013 remains one of cautious optimism for the prospects of our broadly diversified portfolios of undervalued stocks,” Buckingham writes in his latest column. “True, investor sentiment has improved somewhat … but bargains remain plentiful.” Buckingham says that a number of good signs for a contrarian have emerged recently. “Whether it is a magazine story like Time’s recent ‘Stocks are Dead (and Bonds are Deader)’ feature or […]

How Ben Graham Is Still Beating the Market Today

While Benjamin Graham’s classic The Intelligent Investor was written over six decades ago, the Defensive Investor strategy he laid out in it remains a winner, Validea CEO John Reese writes in his latest column. “The investment world is no stranger to apparent greatness that doesn’t last,” Reese writes. “Every year, a number of fund managers will post stellar returns, catching the eye of the media and the public. Then many, if not most, of their funds disappoint the following year — and over the long term. That’s why I try to focus on investors with truly long-term track records, […]

Small, Illiquid, and Cheap: A Winning Combo

In a column for Canada’s Globe and Mail, Norman Rothery says that, while many investors focus on popular, frequently traded stocks, the real profits lie in smaller, illiquid shares.  “While the return potential of small value stocks is well known, the benefits of low liquidity may be less obvious,” Rothery writes. He examines a study recently published in the Financial Analysts Journal, which was performed by Roger Ibbotson and others. It looked at U.S. equity mutual fund holding from February 1995 to December 2009, classifying funds into groups based on the size of their holdings, growth/value characteristics, and liquidity. The […]

Five Reasons for Optimism

In his bi-weekly Hot List newsletter, Validea CEO John Reese offers his take on the markets and investment strategy. In the latest issue, John looks at five reasons he’s optimistic about stocks as 2013 approaches, even though many investors remain fearful of equities.    Excerpted from the Dec. 21, 2012 issue of the Validea Hot List newsletter Five Reasons for Optimism As 2012 winds down, the general mood surrounding the market and the economy remains one of fear. The fiscal cliff, unresolved debt problems in Europe, and the lingering scars of the financial crisis and Great Recession seem to be giving […]