Dividend Value Approach

A Focus on Smaller Company Investing with Lower Volatility

Our Dividend Value strategies serve the needs of clients who wish to benefit from the investment team’s expertise in small- and mid-cap value investing while attempting to mitigate the volatility typically associated with these asset classes. Over the full market cycle, dividend-paying stocks of smaller companies have historically outperformed similar-sized stocks that have not paid a dividend. We believe dividends reflect a company’s financial health—today and into the future—and that paying a dividend is generally a wise use of a smaller company’s free cash flow, unlike other potential uses.

However, not all dividend payers are equal. We use fundamental, bottom-up analysis to identify dividend-paying stocks that both trade below our assessment of intrinsic value and are supported by:
  • Positive and sustainable free cash flow
  • Strong franchises with effective management teams
  • Sound finances and healthy balance sheets

Dividend Value Approach

Approach
Process

Dividend Value Process Highlight

Once we have identified a potential addition to the portfolio, our Research Analysts evaluate the company from three perspectives:

  • Quality

    Seek advantages such as dominant market position, product patents or unique process/production

  • Timing

    Seek developments such as new product or management, change in dividend policy or upturn in industry cycle

  • Valuation

    Assess factors such as price/earnings relative to peers and to history, and cash flow/dividend yield

Dividend Value Strategies

Small Cap Dividend Value Mid Cap Dividend Value

Investments are subject to risk and may lose value. The investment return and principal will fluctuate so that an investor’s portfolio, when redeem offered, may be worth more or less than the original cost.

The services and products described on this website are intended to be made available only to persons in the United States. This website does not constitute an offer or recommendation by Teton Advisors, Inc., Keeley Teton Advisors, LLC or any of their affiliates to offer or sell securities or services to, or a solicitation of an offer to buy securities or services from, any person residing in a jurisdiction outside the United States in which such an offer or solicitation would be unlawful under the applicable laws and regulations of such jurisdictions.