Global High Dividend Yield Equity: Overview

There is an abundance of empirical evidence that suggests that portfolios consisting of high dividend yielding securities may produce attractive total returns over long measurement periods.

TWEEDY, BROWNE

Global High Dividend Yield Equity

Investment Strategy

Established in 1979, the Global High Dividend strategy seeks long-term capital appreciation by investing in companies around the world that we believe to have above-average dividend yields and valuations that are reasonable. Separate account clients may request that the Firm hedge perceived foreign currency exposure back into their base currency, where practicable, or may instead maintain an unhedged posture with respect to their accounts. The minimum account size for a separately managed account In the Global High dividend strategy is $5 million.

There are numerous reasons why we believe that dividends are important in an investment portfolio, not the least of which is the abundance of studies containing empirical evidence that suggests that portfolios consisting of securities with high dividend yields may produce attractive total returns over long measurement periods.

CORE ATTRIBUTES

Multi-capitalization approach focused on investment in US and non-US equities that the Firm believes to have above-average dividend yields and that trade at reasonable valuations, i.e. some level of discount from our estimate of intrinsic value, and which may include investments in emerging market companies where opportunities appear attractive. (Because smaller capitalization companies usually do not pay above-average dividends, it is likely that Global High Dividend accounts will hold few smaller capitalization companies.)
Epicenter of the approach is to seek to exploit discrepancies between the price that a dividend paying company trades for on the stock exchange and our estimate of its underlying intrinsic value.
Research and stock selection methodology is generally geared towards the measurement and confirmation of fundamental quantitative and qualitative measures of intrinsic value, that is informed in large part by a knowledge and understanding of prices paid for comparable businesses in actual corporate mergers, acquisitions and liquidations, and stand-alone, absolute valuations.
Approach seeks to diversify by issue, industry, country, and market capitalization.
Perceived foreign currency exposure can be hedged back into the portfolio’s base currency, where practicable, or remain unhedged at the direction of the client.