A Fund that Focuses on High Dividend Stocks

Tweedy, Browne Inc. is a company that specializes in value investing topics, and has done some great research on high dividend stocks. In a recent article on the Kiplinger site, they speak about a new fund that Tweedy, Browne has introduced. Here is what they have said about the fund:

Tweedy, Browne Worldwide High Dividend Yield Value is the firm's first new fund in 14 years. Like other Tweedy, Browne products, the fund, which opened for business on September 5, follows Graham's value-investing principles: hunting for companies with shares selling at a discount to what knowledgeable buyers would pay in an acquisition or buyout. To that, the new fund layers on a requirement for stocks with above-average dividend yields.

Although stocks with the highest yields tend to be concentrated in sectors such as finance and energy, the managers say they'll strive to diversify the fund's holdings by country and sector. "We're going to own some bank stocks, which are trading at attractive price-earnings multiples and have attractive dividend yields," says manager Bob Wyckoff. "But you'll also see some pharmaceutical, food and beverage, insurance, media, and industrial companies." The fund, which will likely hold 35 to 40 stocks (a relatively small number), will avoid companies in cyclical industries, such as steel and chemicals.

If you are not comfortable investing in individual stocks, or are just looking for some high dividend stocks investment ideas then be sure to check this fund out.