The dividend-focused side of the equity mutual fund business has gotten much more crowded over the years. How's a dividend equity PM to differentiate him or herself?

Robert Shearer, star PM of the top-performing BlackRock Equity Dividend Fund [profile], shares his tips with Reuters' David Randall.

Shearer contends that, despite the overcrowding of the sector, the dividend equity category isn't universally expensive. He lays out his three-pronged approach to stock-picking. He wants portfolio companies that have both strong balance sheets and low production costs, as well as current dividend yields. He's looking for companies that "will have the best margins."

Shearer's fund is up nine percent year-to-date.

The article highlights several of Shearer's current stock picks and includes input from Todd Rosenbluth, a fund analyst at S&P Capital IQ. 

Edited by: HFD


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