Federico Garza-Bueron Considers Funds Best for Growing Dividends
Online, August 20, 2012 (Newswire.com) - What was once viewed as the uneventful side of the stock market is now catching the attention of many investment experts. Financial gurus like Federico Garza-Bueron are keeping a close eye on company dividend rates as they work to grow their own investment portfolio and share in a company's success. A recent article from The Chicago Tribune discusses the latest trend.
Over the past several years, dividend growth has continued to climb even during what has become a turbulent period for stocks. Many investors are developing a dividend-growth strategy to capitalize on this investment opportunity. According to the article, manager Donald Kilbride is one such investor who has seized this potential moneymaking prospect. Kilbride's strategy includes investments with 48 of the current largest companies dealing in dividend-producing stock. Kilbride notes that he chooses companies with large profit generating ability and little debt.
Federico Garza-Bueron is a professional investment representative. He educates his clients in investing with a similar strategy as Kilbride. "One universal strategy when choosing which funds to invest in is choosing a company with a good history," Garza-Bueron said in a statement to the press. "Choose a company who has increased their dividends consistently over the past 10 years." Kilbride agrees with this strategy and suggests that investors balance risk associated with "faster-growing companies with the lower risk of steadier, slower-growing payers."
Federico Garza-Bueron says this strategy of careful market planning allows investors to generate more income when stocks are plummeting and lag slightly behind when stocks are in their prime. Another tip Federico Garza-Bueron gives to his clients is to pay attention to the underdog. "Keep an eye on companies that are undervalued but that manage themselves well, have been in business for a long time and boost healthy dividends," comments Garza-Bueron
The comments from Federico Garza-Bueron are affirmed by the explanation offered by Tom Huber, a dividend investor. According to the article, "Huber tries to better the yield of the S&P 500 by at least 0.15 percentage points before expenses; at 2.4 percent, the portfolio's pre-fee yield beats that of its benchmark by 0.4 point."
Federico Garza-Bueron agrees with the article and suggests that part of the reason be believes so strongly in dividend investing is because a company that pays out more is typically better managed and able to remain in business for the long-haul.
ABOUT:
Federico Garza-Bueron is an investment representative in New York, a role in which he has served since 2010. Prior to this, he spent a decade guiding entrepreneurial ventures from the startup stage to profitability, and structuring a business and investment office for a leading Mexican family. In the 1990's, Federico Garza-Bueron managed accounts for high net worth clients at BBVA Bancomer in Monterrey, Mexico. He holds a Bachelor's degree from Boston College, a Master's degree from Universidad Regiomontana in Monterrey, and an MBA from Columbia University. Currently, Federico Garza-Bueron serves as Event Co-Chair for the Private Equity Committee of Columbia Business School, as well as serving as a Board Member for the non-profit relief agency Friends In Deed.