Perspectives Blog

Building wealth through dividend investing

February 18, 2014

…end growth and other shareholder-friendly actions. Dividends that are not supported by free cash flow may not be sustainable. Active management. The ability to assess a company’s potential to raise its dividend is a critical component of successful dividend investing. This is important because a history of paying a dividend doesn’t necessarily mean a company can increase or even maintain the dividend in the future. High quality. Though there a…

Investing selectively in Asia

Soo Nam Ng, Head of Asian Equities | July 14, 2014

Beneath the surface of slowdown headlines lay pockets of exciting growth opportunities. As companies step back from chasing revenue growth and start emphasizing profit delivery, better cash flows and dividend payouts typically follow. We see the greatest contrarian opportunities in sectors where market sentiment has been most depressed. In my previous two articles, I argued that big picture conditions for more sustainable growth are beginning…

A port in the storm — Short muni funds can offer refuge in the face of rising rates

Catherine Stienstra, Senior Portfolio Manager | October 2, 2014

…vestors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus and, if available, a summary prospectus, which contains this and other important information about the funds, visit columbiamanagement.com. Read the prospectus carefully before investing. Short, intermediate and long fixed-income securities present issuer default risk. The fund invests substantially in…

Finding the sweet spot — Value investing along the muni yield curve

Paul Fuchs, CFA, Portfolio Manager, Municipal Bonds | August 27, 2014

…urse of a year, investors can capture 92% of the expected total return available between two and twenty years by investing in a bond that matures in seven years. The seven year area represents the sweet spot on the curve — delivering the maximum amount of incremental total return for investing out an additional year until maturity. The second area in which we see value is in longer-intermediate bonds around twenty years. Our expectation for curve…

Has dividend investing lost its luster?

Columbia Management, Investment Team | May 12, 2014

Higher-yielding equities underperformed the market last year raising questions about whether dividend investing remains an attractive strategy. Even if rates continue a long-term increase from current levels, we expect that equities sensitivity to rising rates will decline. We believe the drivers that have resulted in historical stock market outperformance from high-yielding equities remain intact. By Paul Stocking, Senior Portfolio Manager an…

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

Overhauling corporate governance to harness the power of private enterprise is critical to Japan’s growth strategy. Better engagement between corporate management and shareholders should ultimately lead to higher returns for holders of Japanese equities. We are focused on companies that can generate sustainable free cash flow, earn returns well above their cost of capital and regularly conduct shareholder friendly capital management. A critica…

Millennials, are you ready to take the next steps?

October 9, 2014

…f dollar cost averaging, a historically successful investment strategy designed to avoid the pitfalls of erratic investing patterns. By automatically investing the same amount of money at a certain time interval (typically once a month), rather than trying to time the market, investors buy more shares when prices are low and fewer shares when prices are high. Keep in mind, this strategy may only work when adhered to for the long term. Consider in…