This week, the Federal Reserve raised its key short-term interest rate for the ninth consecutive time, bringing it to the highest level since September 2007. While Fed Chair Jerome Powell acknowledged the dilemma that the Fed officials faced, the banking system’s turmoil has been a cause of concern following the recent bank failures. However, Powell assured that the banking system is sound and resilient, and the Federal Reserve is prepared to use all tools as needed to keep it safe and sound.
Dividend-paying stocks are gaining new respect among investors, and they are proving to be a protective asset in times of market volatility. ClearBridge Investments’ Dividend Strategy Fund has been named one of “The Best Dividend Funds” for 2023 by Morningstar. Michael Clarfeld, co-portfolio manager of the fund, is with us to explain why high-quality companies with histories of growing their dividends are particularly valuable now.
WEALTHTRACK Episode #1939 broadcast on March 24, 2023Listen to the audio-only version here:
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Dividend fund manager Michael Clarfeld analyzes the surprising risks that rising interest rates have created for bank deposits and some of the portfolio changes he has made as a result in this recent Dividend Strategy report.
Also…
One of WEALTHTRACK‘s favorite guests over the years has been Hersh Cohen, the award-winning manager of the ClearBridge Appreciation Fund for 30 years and co-portfolio manager of the highly-rated ClearBridge Dividend Strategy Fund for nearly a decade until his retirement. One of Cohen’s most popular contributions to WealthTrack was his “Dividend Compounders’, a list of companies with “great balance sheets and dividend growers”. Cohen’s co-portfolio manager on the fund, long-time colleague Mike Clarfeld is carrying on the tradition.
| Stock & Symbol | Year First Recommended | Dividend Yield as of 2/28/23 |
|---|---|---|
| Linde (LIN) | 2014 (originally PX) | 1.34% |
| Procter & Gamble (PG) | 2008 | 2.66% |
| Comcast (CMCSA) | 2011 | 2.91% |
| JPMorgan Chase (JPM) | 2008 | 2.79% |
| Home Depot (HD) | 2009 | 2.56% |
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MICHAEL CLARFELD
- Co-Portfolio Manager, ClearBridge Investments Dividend Strategy
- Co-Portfolio Manager, ClearBridge Dividend Strategy Fund
ACTION POINT
ADD SOME DIVIDEND-GROWING INVESTMENTS TO YOUR PORTFOLIO
DIVIDEND ADVANTAGES
- Downside protection in turbulent markets
- Current income
- Powerful compounding potential
- Dividend-growing stocks offer inflation protection
ONE INVESTMENT
HIGH-QUALITY DIVIDEND
BUY: The Williams Companies, Inc. (WMB)
STOCK MENTIONS
AvalonBay Communities, Inc. (AVB)
Diageo PLC ADR (DEO)
Home Depot, Inc (HD)
Procter & Gamble Co. (PG)
Exxon Mobil Corp. (XOM)
Chevron Corp. (CVX)
Enbridge Inc. (ENB)
Pioneer Natural Resources Co (PXD)
Chesapeake Energy Corp. (CHK)
Freeport-McMoRan Inc. (FCX)
FROM THE ARCHIVE
Mark Clarfelds mentor Hersh Cohen from the WEALTHTRACK Archives:
WEB EXTRA
LESSONS FROM A GREAT INVESTOR MENTOR
Mike Clarfeld has been co-managing the highly-rated Clearbridge Dividend Strategy Fund since 2009. He worked with longtime WealthTrack guest Great Investor Hersh Cohen for almost two decades before Cohen’s retirement as co-manager of ClearBridge’s Dividend Strategy portfolios. We asked Clarfeld to share some of Cohen’s most important investment lessons.
