This dividend fund manager avoids dividend traps

Avoiding companies that cater to investors with a thirst for dividends, Dynamic's David Fingold looks for dividend growth, and often finds the first dividend payment

Jade Hemeon 22 August, 2019 | 1:29AM

Hand holding carrots

David Fingold, vice president and senior portfolio manager at Dynamic Funds and lead manager of the five-star rated Dynamic Global Dividend Fund has achieved impressive category-beating returns during both short and long periods in a surprising fashion.

Although he manages a “dividend fund,” he usually steers clear of traditional dividend-paying stocks such as utilities, telecommunications and Real Estate Investment Trusts, which he says are vulnerable to declining share prices in periods of rising interest rates. When interest rates are rising, the consistent dividends paid by these companies become relatively less attractive to competing investments such as bonds. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Costco Wholesale Corp286.78 USD0.00
Dynamic Global Dividend20.10 CAD-0.58
Keysight Technologies Inc80.89 USD0.00
McDonald's Corp158.17 USD0.00
Northrop Grumman Corp306.99 USD0.00
Zoetis Inc Class A111.92 USD0.00

About Author

Jade Hemeon