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Funds' Similarities End When It Comes to Dividend Yields

ClearBridge Appreciation and ClearBridge Dividend Strategy are solid options for cautious investors.

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Andrew Daniels: Silver-rated ClearBridge Appreciation and Bronze-rated ClearBridge Dividend Strategy are similar in some respects. Both teams focus on finding high-quality large-cap firms with strong balance sheets and superior management teams. Both also emphasize risk-control, leading them to hold up well in choppy markets and post solid risk-adjusted returns. However, Dividend Strategy specifically targets firms with higher dividend yields than the S&P 500's. In fact, as of March 2016, Dividend Strategy's 3% dividend yield was higher than Appreciation's 2.3% yield and the S&P 500's 2.4% yield. Not surprisingly, Dividend Strategy has significantly higher allocations to dividend-heavy consumer staples and utilities stocks.

Andrew Daniels does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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