A Focus on Dividend Investing

At the opening session on day two of the Morningstar Investment Conference in Chicago on Thursday, June 24, three dividend-focused mutual fund managers talked about what they called the great opportunities in dividend investing now, and pooh-poohed worries that higher taxes on dividends would lead companies to cut their payouts. Hersh Cohen, chief investment officer for Legg Mason’s Clearbridge Advisors, argued that a money manager who focuses on a company’s dividend “asks simple questions, but gets profound answers.”

The discussion ended with observations about investors who recently are looking for high yield. “Yield chasing can be dangerous,” said Kilbride, arguing that “sometimes a high yield is a message from the market that’s something wrong” with the company. Cohen agreed, saying “more money has been lost chasing suspect yields.”

Source: Investment Advisor

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