Investing is complicated. There are so many choices available and so many decisions to make it can be absolutely overwhelming.
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Sometimes a simple approach is the best one. One tried and true strategy over the years has been to invest in companies that increase their dividends every year and reinvest those dividends back in the companies’ stocks, letting the power of compounding go to work.
The Bedford Park Opportunities Fund returned 13.5% net of all fees and expenses in the second quarter of 2021, bringing its year-to-date return to 27.6%. Q2 2021 hedge fund letters, conferences and more In the fund's second-quarter investor letter, which ValueWalk has been able to review, Jordan Zinberg, the President and CEO of Bedford Read More
Historically it’s been a performance winner. An analysis by Ned Davis Research of Russell 3000 companies over the last 30 years found that investing in dividend growers has done substantially better than in dividend paying companies that don’t grow their dividends, and significantly outpaced stocks of non-dividend paying companies. The stocks of the dividend growers were also less volatile than the dividend non-changers and non-payers.
These results are no surprise to this week’s WEALTHTRACK guest who has spent half a century finding high quality dividend growers and has beaten the S&P over the years doing it. We’ll hear from Great Investor Hersh Cohen, Co-Chief Investment Officer of ClearBridge Investments, a Legg Mason affiliate, where he oversees nearly $18 billion in assets. He is also Co-Manager of the firm’s Dividend Strategy portfolios, including the ClearBridge Dividend Strategy Fund which he has co-managed since 2009. Cohen made his reputation with the ClearBridge Appreciation Fund which he left in 2010 after a thirty year run, in which he edged out the S&P 500 with much less risk and volatility than the market.
Cohen is stepping down from management of the Dividend Strategy fund at the end of 2017 but will continue to manage money for clients. He will also stay on as Co-Chief Investment Officer with his long-time colleague and fellow portfolio manager Scott Glasser.
In this week’s exclusive interview, Cohen shares his fifty years of market and investment perspective and explains why dividends have always played a key role in his investment strategy.
If you’d like to see the show before it airs, it is available to our PREMIUM subscribers right now. We also have an EXTRA interview with Cohen about one of his personal passions, twentieth century American prints. It will be available exclusively on our website.
Also, a reminder that if you would like to take WEALTHTRACK with you on your commute or travels, you can now find the WEALTHTRACK podcast on TuneIn, Stitcher, and SoundCloud, as well as iTunes. Find out more on the WEALTHTRACK Podcast page.
Have a great weekend and make the week ahead a profitable and a productive one.