These 'overlooked gems' pay attractive income, a dividend specialist says
Seek out these dividend-paying names, says ClearBridge Investments' Michael Clarfeld.
TL;DR
- Market concentration remains high in mega-cap technology companies, driven by AI interest and momentum.
- Michael Clarfeld of ClearBridge Investments believes overlooked 'gems' offer good opportunities and pay dividends.
- He categorizes these opportunities into 'pedestrian' high-quality businesses and 'tangential' names affected by AI concerns.
- Specific stock picks include The Williams Companies (natural gas infrastructure), Unilever (consumer staples), and Automatic Data Processing (payroll software).
- Periods of narrow, momentum-driven markets historically precede periods of broader market participation where dividend-growth portfolios tend to perform well.