At Ceredex Value Advisors, we believe that undervalued, dividend-paying stocks with positive catalysts will yield consistent long-term investment results for our clients. We identify stocks on a company-by-company basis with positive business catalysts that indicate upside potential and may reignite investor interest.
Key Elements of Approach
Companies with well-defined dividend policies provide an important source of total return, offer tangible proof of a company's earnings potential and lower overall volatility in declining markets. Ceredex only invests in companies that pay a dividend.
Relative and Absolute Valuations
We seek low expectation stocks trading in the lower end of their historical valuation relative to their industry peers and the market, based on the premise that valuation disconnects tend to revert back to their mean.
Positive Catalysts Leading to Improving Stock Prices
The investment team looks for catalysts that have the potential to drive meaningful price appreciation over a 12- to 24-month time frame. Positive catalysts could include management changes, restructuring or new product introductions.
Mills Riddick, CFA
Chief Investment Officer, Senior Portfolio Manager - Large Cap Value Equity
Don Wordell, CFA
Managing Director, Portfolio Manager - Mid-Cap Value Equity
Brett Barner, CFA
Managing Director, Portfolio Manager - Small Cap Value Equity