The managers of U.S. News’s
top-ranked large-value fund sift through the universe of large companies using several criteria: stocks must have dividend payouts greater than the average yield of the S&P 500, and they must have price-to-earnings, price-to-book, and debt-to-capital ratios below the S&P 500 average. Beyond that, managers James Cullen and John Gould dig into company fundamentals to determine if a prospective holding is likely to continually increase its payouts in the future. Over the longer term, the fund’s measured strategy has paid off: Over the past one, three, and five years, the fund's returns rank in the top 20 percent of its category. The fund currently yields 2.37 percent.
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Matthews Asia Dividend Fund (MAPIX)