How 3 Top Dividend Managers Are Navigating Today's Market

Dividend-focused managers discussed how to manage yield strategies amid shifting market conditions at the Morningstar Investment Conference. The panel, titled “Is the Dividend Dream Still Alive,” brought together Michael Barclay, lead manager of the $47.4 billion Columbia Dividend Income GSFTX (Silver-rated), Andrew Brandon, lead manager of the $43.5 billion JPMorgan Equity Income HLIEX (Silver-rated), and Ramona Persaud, manager of the $11.4 billion Fidelity Equity Income FEQIX (Gold-rated). Moderator Todd Trubey, Morningstar senior research analyst, asked whether dividend yield alone drives outperformance. Persaud said income factors tied to rates may not consistently produce “alpha,” and combining valuation with other factors can improve odds. Barclay argued dividend cycles matter but yield is a risk factor that can move with interest rates, citing early-2020’s pandemic drawdown where balance-sheet quality, not yield, helped. The discussion emphasized assessing balance sheets, cash-flow coverage, and dividend durability.