The Columbia Dividend Value team seeks to deliver strong risk-adjusted performance by investing in companies with a history of growing their dividends at an above-average rate. The investment team believes paying dividends is a sign of capital discipline, and companies with capital discipline are more likely to be successful over time.
The investment team screens for companies with free cash flow yields and dividend yields within the top two quintiles of the investable universe (stocks in the Russell 1000 index, S&P 500 index, as well as large ADRs traded on the NYSE.) Detailed fundamental analysis seeks to identify cash flow over a multi-year period—taking into account future needs of the company and ultimately the ability to sustain or increase dividends.
The team seeks to allocate risk in an effort to maximize alpha. The portfolio is comprised of 70-100 stocks and the team targets a maximum position size of 3% active weight.
Benchmark: Russell 1000 Index; Russell 1000 Value Index
Portfolio parameters are internal guidelines used by the investment team and are subject to change without notice. Formal investment parameters are set forth in the offering documents or investment management agreement. Dividend payments are not guaranteed and the amount, if any, may change over time.