Perspectives Blog

Building wealth through dividend investing

February 18, 2014

We believe a disciplined dividend strategy that focuses on rising dividends produced by high-quality companies can help investors build wealth over time. Historically,  dividends have been an important component of total return, with the best opportunity for total return in the stocks of high-quality companies that can sustain and grow their dividend over time. Higher quality stocks act to mitigate risk and offer downside protection during time…

Second quarter asset allocation positioning

Columbia Management, Investment Team | May 14, 2013

Within equities, we maintained an overweight to U.S. stocks, with emphasis on large-cap stocks and high-quality, dividend-paying equities. For fixed income, we continue to prefer investment grade corporate bonds. We believe low correlation absolute return strategies should continue to be a part of diversified portfolios. The Columbia Management Asset Allocation Team meets to review global economic investment conditions and markets. Team member…

Three investments that could return to favor in 2014

Jeffrey Knight, CFA, Head of Global Asset Allocation | December 16, 2013

When an out of favor investment is re-discovered, sustained outperformance often follows The three criteria we look for in identifying an out of favor asset class or investment strategy Why Japanese stocks, EM stocks and active equity strategies may soon be rediscovered When investors lose confidence in an asset class, especially one that had been popular enough to attract outsized allocations, subsequent rebalancing generally leads to prolong…

Should investors care about valuation?

Rich Rosen, Portfolio Manager | November 25, 2013

Is valuation an effective tool for deciding on whether to invest in a stock? We look at other drivers of a stock’s worth Earnings and earnings growth could be more useful in evaluating a stock’s worth Many of the market experts paraded around on the business programs, when asked about their forecast for stocks, often begin with a comment about valuation. But really, how effective is valuation as a gauge for determining whether it is a good tim…

The world has gone global. Have you?

Paul Berlinguet, Vice President, Equity Products | May 21, 2013

obally in companies with diverse revenue streams. While problems in Europe or the fiscal cliff in the U.S. remind us that sovereign issues often drive stock prices temporarily, a well-diversified mix of U.S. and International stocks can dampen volatility. Market dislocations can often give investors the opportunity to buy global companies that may derive little revenue from their home country, “on sale.” With equity yield in high dema…

Opportunities in the middle ground

Columbia Management, Investment Team | July 2, 2013

Investors seeking growth opportunities for an equity portfolio should not overlook mid-cap stocks. Mid-size companies typically feature a combination of desirable attributes – more stable than start-ups yet more flexible than large companies. Investors holding mid-cap stocks over long periods have benefited from strong performance with less volatility compared to small-cap stocks. Finding the middle ground usually means making compromises. But…

Should your income be fixed?

David King, CFA, Senior Portfolio Manager | December 16, 2013

…e-oriented and conservative investors. Fortunately, the words “income” and “fixed” are not linked by decree. There are many non-fixed, income-oriented security structures which are suitable for investment, including: – Common stocks with safe, stable or rising dividends – Floating rate bonds – Bank loans – Preferred stocks and bonds with interest rate reset features – Master Limited Partnerships Without question, some of these asset classes are m…