Webinar – “Dividend Funds: Do We Even Need Bonds?”
Buffalo Dividend Focus Fund (BUFDX / BUIDX) co-portfolio manager Jeff Deardorff, CFA, recently appeared on a webinar hosted by CFRA Research and Dividend.com with the topic “Dividend Funds: Do We Even Need Bonds?” Moderated by Todd Rosenbluth, Head of EFT and Mutual Fund Research at CFRA Research, the webinar discussed the benefits of dividend investing, the current low interest rate environment, and the rotation by investors into stocks to find income through dividends.
During Jeff’s presentation, he discussed his team’s investment approach for the Buffalo Dividend Fund portfolio and ultimately answers the question “Do we even need bonds?” Jeff ends his presentation with a case study on Citizens Financial Group. Some of the main points Jeff covered included:
- Dividend growers historically have performed well with less volatility.
- Dividends may offer competitive yields relative to fixed income during periods of low interest rates.
- Dividend payout ratios are well below historical averages.
- Historically high levels of corporate cash bode well for future dividend increases.
- Dividend payers can be found in a wide variety of industries including technology.
“We are careful to not just look for the highest yield and dividend stocks, because oftentimes that’s a signal the company is actually underperforming and the current dividend may not be sustainable.“
~ Jeff Deardorff, CFA, Co-Portfolio Manager, Buffalo Dividend Focus Fund
To access the entire webinar replay at no cost, CLICK HERE.
Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. References to other mutual funds should not to be considered an offer to buy or sell these securities. Dividend payments are not guaranteed. As of 6/30/21 the Buffalo Dividend Focus Fund top 10 equity holdings were Microsoft 4.58%, Apple 3.85%, Viper Energy Partners 2.90%,
Visa 2.74%, CVS Health 2.49%, Elanco Animal Health 2.43%, Bank of America 2.20%, Horizon Therapeutics 2.09%, UnitedHealth
Group 2.03%, Citizens Financial Group 1.93%. Top 10 holdings for the quarter are not disclosed until 60 days after quarter end. A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower of higher than the performance quoted and can be found here; quarter-end performance can be found here. Performance is annualized for periods greater than 1 year.
Dividend Focus Fund
Total Assets $117.28 Million (12/31/21)
Expense Ratio 0.94% / 0.79%
Benchmark Morningstar U.S. Large-Mid Cap
Jeff Deardorff, CFA, Buffalo Dividend Focus Fund co-portfolio manager, was a featured presenter during a recent CFRA Research webinar, where he discussed the current state of dividend investing and ultimately answered the question “Do We Even Need Bonds?”
Red-Hot Manager Forecasts Volatile 2023
John Kornitzer, Buffalo Flexible Income Fund portfolio manager, was recently interviewed by Investor’s Business Daily where he discusses industry trends that help identify opportunities with the potential for market outperformance.
Buffalo Funds named to IBD Best Mutual Funds 2022
BUFIX and BUFHX were named to the Investor’s Business Daily Best Mutual Funds 2022 list in the International Stock Fund and U.S. Taxable Bond Funds categories, respectively.
Barron’s Profile of Buffalo Small Cap Fund PM Bob Male
Bob Male, Buffalo Small Cap co-portfolio manager, discusses his team’s trend-spotting and portfolio-building strategies that help the Fund find small companies with the potential to grow into large ones.
Finding Small-Cap Innovators in Technology
Craig Richard, Buffalo Early Stage Growth Fund co-portfolio manager, was recently interviewed by The Wall Street Transcript where he discusses IPOs and being overweight in the technology sector. He also shares his thoughts on investing in early stage growth companies, highlighting several examples of companies in the Fund’s portfolio.
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.