Our roster of best managers featured here met these screening criteria:
They’re running actively managed funds that land in one of the large-cap stock US fund Morningstar Categories: large growth, large blend, or large value.
They oversee a fund with at least one share class earning a Morningstar Medalist Rating of Gold with 100% analyst coverage.
Management holds 100 stocks or fewer as of their most recently reported portfolios.
The managers of these top concentrated funds focused on large-cap stocks meet our criteria as of April 29, 2024.
Diamond Hill Large Cap (DHLYX)
Dodge & Cox Stock (DODGX)
JPMorgan Equity Income (OIEJX)
Loomis Sayles Growth (LSGRX)
MFS Value (MEIJX)
Oakmark (OAKMX)
Parnassus Core Equity (PRBLX)
Principal Blue Chip (PGBHX)
T. Rowe Price All-Cap Opportunities Fund (PRWAX)
Vanguard Dividend Growth (VDIGX)
https://www.morningstar.com/funds/10-best-fund-managers
Comments
I don’t know if these are “the best” in 2024. I guess they’re referencing just a select category of large cap funds: ” … these top concentrated funds focused on large-cap stocks” (Sounds like M* is trying to sell copy.)
Personally, I find M*’s medalist ratings helpful and worth a look. Have bought into 1 or 2 of their “gold” or “silver” funds with success. But not flawless.
Thanks @Observant1
Their mutual funds are team-managed and have low expenses out of the gate.
Long-term performance for most D&C funds was good the last time I checked.
I own DOXIX in my 401(k).
If I was seeking a Large Value fund, DODGX would be on my shortlist.
M* Fund Analyst Reports can be quite good but quality varies depending on the caliber of the analyst.
Unlike M*, I do not consider most mutual funds that hold 100 stocks to be concentrated.
We also like you own PRWAX.
Possibly it had something to do with the WaMu debacle.
VIG pays a higher Dividend and is ahead for last few years, as is SCHD
PRDGX seems to be a better dividend growth fund as well
Sounds like a great plan!
ganggame.Who was it said, “Modesty is a virtue …” ?
FCNTX— large cap growth
PEQSX— large cap value
GQEFX— large cap blend
Each of these are top performers in their style for the 1, 3 and 5 year timeframes. Each have consistency from year to year. And each fund tends to be concentrated in the names they like. They also have good ulcer ratings vs their competition.
Many of the stocks you mention are in SHCD which pays 3.4%
It excludes REITS and while I think it has too many small positions it is good for one stop shopping, relatively low volatility ad a decent payout.
When I set out on this path (i.e. dividend growth investor) I was looking for stocks that had a track record of consistent, long-term dividend growth with the opportunity for capital appreciation as a secondary objective. The funds I scoured (many) all seemed to be paying yields that one could easily increase (often substantially) by simply investing in their top-5 or 10 picks. TIBIX was the fund I was using back then but after a few years of doing as advertised, building their income, it stagnated and eventually came to a halt. I wasn't smart enough to figure out why that happened and I wasn't sure any similar fund wouldn't do exactly the same.
As also previously mentioned, I get that it's not everyones cup of tea. I'll also admit that holding my current choices may constrain the capital appreciation aspect but the income continues to increase which was my primary objective.
Seems one could sleep well knowing that the income generated (in dollars) is what matters to a retiree who might be considering other income generating options (annuities for one).
Do you find that you are able to generate income equal to or greater than say a 4% safe withdrawal rate on divis only?
If so, I am intrigued to learn more for at least part of my retirement income sleeve. Please share.
Perhaps a new thread can be created for this topic?
Thanks!
1) Most of my DG portfolio holdings were bought at depressed valuations (on sale if you wish). I probably wouldn't buy most of them today because of stretched valuations but I would, and do, pick at them when the opportunities present themselves. I think stock selection is as important as the dividend growth potential.
2) The current combined yield is 5.8% (at today's equity values) which easily funds my needs and then some without having to sell any shares.
3) Selling shares at some point in the future would of course decrease the income generated or would it? The income from this portfolio has doubled since I established it and that's without the benefit of dividend reinvestment.
4) Which leads me to this point * where would you be dummy (me) if you had reinvested those dividends!!!???* Ah, if only.
I'm going to try to set up the portfolio in PV (Portfolio Vision) and see what it says. To be honest I never gave it much thought (silly right?) because I was focused on income generation and hopeful CG's.
Is that 5.8% of your current account value, or your cost basis? Isn't it hard to generate a yield that high without a lot of MLPs and REITS and /or BDCs etc?
Edit to add: I should probably mention that the stocks I mentioned earlier are not the only ones I use/own which makes 5.8% possibly suspect. Others in that bucket include BDC's, MReit's, and equity income CEF's. I tend to rotate those (in, out or swap) based upon market conditions.
@Old_Joe - thanks but it was a lot of luck mostly. The picks could have tanked and cut their dividends anywhere along the way and still could. A recent case in point is LEG, a dividend aristocrat of merit who just hit a 52-wk low and cut their dividend by 89%. I owned it at one time but I don't remember why I sold it or traded it for some other investment.
There was a guy at M*, Josh Peters, back around 2007-9 who had a monthly dividend investor column. I learned a lot from him. He left for some fund company to run a mutual fund based on his acumen and possibly his popularity. I've no idea how that turned out.
He may be old and conservative, but he ain't dumb.
Suppose you are at Fidelity and you have one million invested in FXAIX(SP500). You can set up in 2 minutes a monthly sell order, on a certain date, for $3K(or another amount) to go on for months-years until you stop it. You just created an income monthly stream.
Basically, a fund that generates double the income of the SP500 but lags by 1% annually is still inferior. It is just a math exercise that the income crowd refuses to admit.
Income VS TR(total return) is one of the oldest discussions that have led the income crowd to miss a lot of performance since 2010.
I'm not against income, I'm against people who go blindly after income.
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While a low expense ratio is desirable, there are plenty of exceptions.
PRWCX in the last several decades.
PIMIX from 2010 to 2018.
Most will crap their shorts when the market draws down 30 to 40%
They'll never stay with and will bail out likely at the bottom
Dunno but she recently received the 2024 US Morningstar Outstanding Portfolio Manager Award.
"Morningstar Manager Research analysts chose Hart from a list of three nominees who have run investment strategies that earn Morningstar Medalist Ratings of Gold or Silver on at least one vehicle or share class. They each had long, impressive track records, disciplined but adaptable philosophies and processes, and a proven record of putting investors’ interests first. Hart’s faithful and consistent application of a tried and true approach won the day, though."
https://www.morningstar.com/funds/morningstars-2024-us-morningstar-outstanding-portfolio-manager-award-winner
Portfolio Visualizer Backtest - OIEIX During Clare Hart's Tenure
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=5CfKNvVlpd8TKApToYqYLi
It's all a mindset until the 70s when healthy blue chips paid Div. Then came the tech revolution and these companies don't use it anymore while some believe it's still going on.