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Large Cap/All Cap dividend investing, need input

I have been looking to augment my portfolio with a relatively conservative LC/All Cap dividend value fund. My prior searching came up with several good candidates; some were Transaction fee and/or load funds, of which I do not invest in. I ended up selecting PYVLX (Payden E/I) an NTF at FIDO.

Two "loaded" funds that came up in my previous searches were LCEAX (Invesco Diversified Dividend) and IAUTX (Invesco Dividend Income). Recently, while perusing Fidelity's "recommended" LC Value funds, I noticed these funds are now Load Waived; this change happened within the last couple of weeks or so.

I was intrigued by these funds originally, but they were "loaded", so off my list they went. Now that they are LW, I am reconsidering them.

I would like and appreciate any and all thoughts, opinions and recommendations regarding these funds and/or any other options that come to mind.

Thank you, Matt


  • I favor DSENX and would look hard at NOBL, SPHD, OUSA, and of course CAPE. Not much MC, though.
  • @mcmarasco: If yield is a high priority with you, might I suggest individual stocks rather than equity mutual funds. The average so called dividend growth fund, or equity-income fund offer about half of what a quality stock dividend can yield. Two stocks that I own VZ and T yield 4.41% and 4.89% respectively and capital appreciation of 12.66% and 15.61% YTD.
  • Thank you both for the suggestions; I will look into them!

    Ted I have a dumb (or ignorant) question about the stocks you mentioned. Does the YTD return include the yield or is the yield an added bonus on top of the Cap. Apprec.?

  • @mcmarasco: First there are no dumb questions on the MFO Board. The yield is a bonus to the capital appreciation. Here is some more high income food for thought.
  • BRLIX might be a viable very low cost option for LC, too.
  • @mcmarasco:

    As we approach a "challenged" part of the year (May-Oct) and with the S&P having difficulty breaking through 2100, I would consider being very conservative with additional LCV exposure by using something like VWIAX if you don't already own it. Beyond this fund, I would take a look at FVD, DVY and VYM.

  • edited April 2016
    If VZ and T seem attractive, another option is a telecom etf. Those two stocks make up almost half the cap-weighted index - 22% each in VOX, the Vanguard fund, with lesser amounts of several other t'com stocks to spread the risk. (Quoted yields at M*: 3.75 TTM, 2.94 SEC.)

    Be aware, though, that the sector has been red-hot since the selloff, up nearly 10% in only 3 months. How much further it can go, who knows?
  • edited May 2016
    Two funds that I have in my domestic equity sleeve found in the growth and income area of my portfolio that I favor are FDSAX and SVAAX.

    I have linked the Morningstar reports for these funds below along with their fact sheets. Value Dividend Fund - Investor Fact Sheet

    In the small and mid cap space a fund that I own and favor is PMDAX.

    And, another fund that I favor but do not currently own is TWEAX. It's reports are linked below.

    To get a feel for their style orientation along with sector allocations you might wish to do an Instant Xray analysis on each fund through the below link. Just enter the funds ticker symbol along with an amount and click view instant xray.
  • msf
    edited April 2016
    One thing I really like about a couple of Skeet's funds is that they are load funds from load families. Not just ordinary load families, they're run by insurance companies. And they merit consideration.

    Principal offers some pretty solid funds through retirement plans, but they're also available at the retail level, NTF, at some brokerages.

    Here's the Fidelity NTF listing for PMDAX (it's a Fidelity fund pick).

    Don't get thrown off by its 3* rating; that's because M* ratings incorporate the impact of loads, and M* overweights that impact for funds with shorter lifetimes (this fund is rated on its three year record only). Instead, see it as a 4* noload fund:

    I'm less familiar with SunAmerica - I tend to associate it with VAs, and apparently it's now (since 1998) a subsidiary of AIG. Talk about queasy feelings. Yet the fund seems solid. You can purchase it NTF through TDAmeritrade.

    American Century funds, like funds from PIMCO and a variety of other families are sold both load and noload. The noload version of TWEAX is TWEIX. (When one drops the load, whether on TWEAX or TWEIX, the fund gets bumped to a 5 star fund; TWEIX is less expensive as it doesn't have a 12b-1 fee.) One downside is that it's not particularly tax efficient, even allowing for its emphasis on dividends.

    LCEIX (now LCEAX) has been on my short list for years, in part because it is more tax-efficient than some of the other funds that pop out in the LCV space.

    FWIW, Fidelity added several families (including Invesco) to its load waiver list about three years ago. Here's my post on the Fidelity waivers:
  • Sugg comparing (growth of $10k) VZ and T for 1/2/3y vs any of the ones I mentioned before proceeding. Yield may mislead, taxes aside.
  • A lot of great suggestions and thoughts, thanks everyone. I have looked into several suggestions and they are very intriguing; still have work to do though.

    Please keep the discussion going!!!
  • Take a look at the world infrastructure fund GLFOX with 7.8% yield. With negative interest rate around the world high yielding stocks can be attractive not only in the US.
  • I endorse suggestions re: DSENX and GLFOX.
  • You might take a look at any of the Vanguard 'Dividend' funds and/or ETF's. Also look at SDOG, a sector diversified Dividend Dog styled equal weighted ETF. And Schwab offers their SCHD, a US Stock, Large Cap Value ETF tracking the Dow Jones U.S. Dividend 100 Index.
  • Take a look at AUENX and BLVAX.
  • Can't resist - BLVAX, another load fund. Ignore the load (which you can do by purchasing it NTF at places like Fidelity) and its rating improves from 4* to 5*.

    Somewhat related ...
    The minimum for DSEEX is just $5K in an IRA. So if you're investing in an IRA, there's no need to use the more expensive DSENX share class.

    At Fidelity, you could purchase the min of DSENX (NTF), add whatever amount you want to keep in the account (at least $5K total), and ask Fidelity to convert the share class. For most funds, they can do this and there's no $50 fee charged. (I've done this with another fund, but not with DSENX, so you'll have to ask if they can convert this fund.)

    Then, additional amounts cost just $5 (using Fidelity's automatic investment program, one time only). Not bad to reduce fees by 25 basis points.

    Similar idea with AUENX - the min for AUEIX at Fidelity for an IRA is $2500, same as for AUENX. Save the 25 basis points. (Where can one get AUENX outside of an IRA for under $1M?)
  • Thanks msf. I should've mentioned both AUENX and BLVAX were purchased on Fidelity's NTF platform.
  • I owe you serious.

    You gotta be persistent w c/s kids. I IMed Fido c/s just now, and no, '$50 is the fee.' I said 'For class conversion ...?' 'Lemme check. Oops, no, that can be done n/c. Phone only.'


    Future purchases? DSENX, then convert .... Wild.

    So Trump-level thanks for your prior investigations of this.
  • For a steady well managed fund and probably the whole family, I own and like PRBLX in the Parnassas Family.
  • Thanks again everyone, terrific suggestions and thoughts!!!

    I am not familiar with most of these suggestions so I have a lot to check out; exactly what I was hoping for.

    If there any any other investment vehicles worth considering, please let me know!!

  • mcmarasco: "If there any any other investment vehicles worth considering, please let me know!! Yes, PFF 5.5% yield month-in-month-out, year after year, with little downside risk.
  • PFF is awesome the last couple of years. Go back farther than that, alas, and it falls well behind other div-oriented funds or etfs. If considering, be sure to check out its headsnapping (>60%) plunge from summer 08 on.
  • There is a big difference between the various kinds of "dividend" funds, and you need to do your homework (including actually reading the prospectuses) before you invest. I am always shocked when investors are surprised by something that happens to one of their investments, only to find out they could have known this might/would/could have happened and that it was part of the prospectus.

    That being said, we have used a number of "dividend" funds over the years, a few of which we think have merit. Some, like PFF, are more fixed-income than equity, and have much more downside risk than one might think when prices on the underlying securities are at rather high premiums. Timing could be important here. We bought PFF in March of 2009 and rode it for quite a while. Salient Select Income KIFYX is also worth a look, I think. For REITS, it is hard to beat Cohen & Steers CSRSX and ICF.

    Some mutual funds, like TIBIX and IVFIX, have dividend yield as an integral part of their investment philosophy. There are ETFs that combine income with targeted low volatility, such as SPHD. Others target only yield, like VYM, SDY, CVY, and PFM.

    The current attraction of dividend-paying equities is that most companies' bonds are over-priced (meaning tiny yields), with lots of downside. The stocks not only have some long-term growth potential, but have a much higher yield than the bonds. But there is no free lunch in the dividend-investing arena. As in all investing, buyer beware.

  • @BobC: First congratulations on becomming part of David's MFO team. I have always considered you a huge asset both here at MFO and in the old days at FundAlarm. I bought PFF back in March of 09 @19.07, needless to say one of my better investments.
  • Thanks for your kind words, Ted. As for your success with PFF, timing is everything! It's had a great run.
  • Ring the bell, Ted, when you get another signal like the one in March 2009!
  • Interesting read... Last post was 2016 but guess which suggestion looks terrific after 4 years? PRBLX and DSENX Nicely done @davidrmoran @benwp
  • @JonGaltIII. Agree. And that was the year (& 2015) when most funds struggled and a few were underwater.
  • This is a 5 year old thread, but still a timely topic. I'm in PRBLX (now PRILX) and have been very happy w/its stability, performance, and composition. They were one of the few funds to come out rather well during '08, all things considered.
  • Original posting on this thread, 5 years ago:
    "....relatively conservative LC/All Cap dividend value fund..."

    Are you still intent on a value emphasis, in 2021?
    I'm doing just a quick look... Vanguard has been getting negative reviews here in terms of customer service. But VEIPX certainly looks good. Then there's PRDGX. But just lately, Index performance has beaten the fund's performance by a bit. .....Alternatively, what about investing in a single stock that strikes your fancy? For income, I use bond funds. These days, bonds are poison, I know. But I can't be pulling up roots and making changes all the time, depending on which way the wind blows. I've got the other bases covered to my satisfaction.
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