Columbia Dividend Income Fund (LBSAX): Overview

The Columbia Dividend Income Fund only consists of stocks and doesn’t utilize any kind of stocks and bonds mix for producing income. As of data on September 23rd, 2020, the Columbia Dividend Income Fund has assets totaling almost $23.37 billion invested in 78 different holdings. The fund’s portfolio mainly consists of large cap U.S. equities. Fund managers actively search for companies that seem to be valued attractively relative to future potential. They also find if the companies have increasing cash flow, which may result in dividend increases.

Columbia Dividend Income Fund (LBSAX): Parent Company

Parent company Columbia Threadneedle Investments doesn’t want the fund to be used only by retirees who take income distributions. It also wants people who are still accumulating their retirement corpus. Columbia Threadneedle uses the Russell 1000 Index of large U.S. stocks to gauge fund performance. When U.S. stocks performed well between 2009 and 2015, the fund finished in positive territory. The fund has lagged its benchmark slightly on a one- and three-year basis.

Columbia Dividend Income Fund (LBSAX): Performance

Over the past year, the Columbia Dividend Income Fund has returned 8.55 percent and 9.73 percent over the past three years. Over the course of history, dividend stocks have proven to be less volatile than the wider equity market. In the American market, dividend payers tend to be large firms whose stocks are typically less volatile when compared to smaller companies. 

Columbia Dividend Income Fund (LBSAX): Downside Protection

Downside protection is part of the Columbia Dividend Income Fund’s stated strategy. Even when markets decline, strong companies generally continue paying dividends. This ensures that investors can make decent returns during broader market corrections as well.

Columbia Dividend Income Fund (LBSAX): Top Holdings

The top holdings of the Columbia Dividend Income Fund are Microsoft Corp., Johnson & Johnson, Exxon Mobil Corp., JPMorgan Chase & Co. and Wells Fargo & Co.

The fund returned 6.95 percent from its March 1998 inception through Dec. 31, 2015. That does not include a maximum sales charge of 5.75 percent.

Columbia Dividend Income Fund (LBSAX): Category

Morningstar tracks the fund within its Large Value category. Over the long haul, the fund’s total return has been well above the category average.

The fund has returned 11.71 percent over the past five years and 12.62 percent over the past decade.

Columbia Dividend Income Fund (LBSAX): Ranking

It is listed as number 3 in large value.

Columbia Dividend Income Fund (LBSAX): Investment Strategy

The fund seeks capital appreciation and current income with a strategy of investing primarily in dividend-paying equities.

Columbia Dividend Income Fund (LBSAX): Role in Portfolio

The fund has been labelled as a “core” holding.

Columbia Dividend Income Fund (LBSAX): Management

The fund’s managers are:

  • Scott Davis, who joined the fund in 1998, was named lead manager in 2012.
  • Michael Barclay, who was promoted to co-manager from his analyst position in 2011. 
  • Peter Santoro, who was bumped up from analyst in 2014.

Managers invest their own money in the fund as well, which aligns their interests with those of other shareholders.

Columbia Dividend Income Fund (LBSAX): Performance

The fund has returned 8.55 percent over the past year, 9.73 percent over the past three years, 11.71 percent over the past five years and 12.62 percent over the past decade.

Columbia Dividend Income Fund (LBSAX): Fees

Columbia Dividend Income Fund has an expense ratio of 0.94 percent.

Columbia Dividend Income Fund (LBSAX): Risk

As it is with stock investing in general, investing in the Columbia Dividend Income Fund is also risky. This fund owns a single asset class: large U.S. stocks. Sometimes, this asset class tends to underperform when compared to others. Hence investors should be ready to sit through a slump during the time that small caps or non-U.S. stocks are rallying.

Volatility Measurements

Volatility measures reflect the uncertainty or risk of change in a security`s value.

Standard Deviation

15.058

Mean

0.87

Sharpe Ratio

0.584

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