Federated Strategic Value Dividend Fund
My last recommendation comes from Federated Investors (FII), one of the largest investment managers in the country with $364 billion under management.
One of the many mutual funds FII offers is the Federated Strategic Value Dividend Fund (SVAAX), a $7 billion fund that seeks both dividend growth but also higher-yielding dividend stocks than the broader market.
Interestingly, despite a yield that’s higher than most dividend-focused funds, it turns over its entire portfolio just once every five years. That’s slower than either of my other recommendations.
The portfolio itself is composed of 37 holdings — nice and focused — with the top 10 accounting for 43% of the overall portfolio. All of these stocks are large caps with a median market cap of $72 billion. In other words, they’re big … we’re talking names like AT&T (T), ConocoPhillips (COP) and Duke Energy (DUK). Meanwhile, expenses run at 1.06%, with a maximum 5.5% load fee.
Although Morningstar only gives it a three-star rating, Strategic Value’s return since its inception in 2005 has been more than adequate. SVAAX’s performance doesn’t compare to the other two mutual funds, but if you’re looking for pure yield, Federated delivers.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.