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$16 billion Thornburg fund goes shopping globally for dividend stocks

Posted On January 31, 2017 6:07 pm
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The $16 billion Thornburg Investment Income Builder Fund’s Ben Kirby scours the world for investments. He shared three of his favorites stocks — from China, Italy and here in the U.S. — in an interview.

The mutual fund’s income objective sets it apart from most “blended” funds, according to Kirby, who said last year’s strong performance — a 9.5% return for Class A TIBAX, -0.60% shares, excluding sales charges — was “helped a lot by financials and a global inflation trade we had been positioning for. It was a position that, frankly, didn’t help the previous year or two.”

Kirby, who oversees the fund with two other managers, said he’d been reducing consumer-staples and utilities stocks, which had been favored by investors for their high dividend yields.

“The big picture was that expensive defensive [stocks] that worked well in 2014, 2015 and the first half of 2016, cratered later in 2016, especially with Trump.”

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Dividend Sensei
Dividend Sensei

I’m an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, Investorplace.com, and TheStreet.com.

My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 20 years of investing experience, I’ve learned what works and more importantly, what doesn’t, when it comes to building long-term wealth and income streams. I’m currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that:

1. Pays a 4% to 5% yield
2. Offers 9% to 10% annual dividend growth
3. Pays dividends AT LEAST on a weekly, but preferably, daily basis