A Wall Street Transcript Interview with David Abella, CFA, Senior Portfolio Manager for City National Rochdale: Focusing on Stable Dividend Income With Capital Appreciation Leads to Selected Pipeline MLP and Consumer Stocks

Wall Street Transcript

67 WALL STREET, New York - March 28, 2014 - The Wall Street Transcript has just published its Investing Strategies Report. This special feature contains expert industry commentary through in-depth interviews with experienced professional Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Secular Growth Themes - Global Growth Equities - Dividend-Paying Stocks - Large-Cap Growth - Capital Appreciation - Basic Needs Investing - Investing in Stable Economies - Investing in the Swiss Market

Companies include: AT&T, Inc. (T), UIL Holdings Corp. (UIL), Dr Pepper Snapple Group, Inc. (DPS), The Coca-Cola Company (KO), Pepsico, Inc. (PEP), Entertainment Properties Trust (EPR), GlaxoSmithKline plc (GSK), Energy Transfer Partners L.P. (ETP), National Health Investors Inc. (NHI) and many others.

In the following excerpt from the Investing Strategies Report, an experienced portfolio manager discusses his investment methodology and top picks for investors:

TWST: Can you give us an overview of the fund's investment philosophy and strategy?

Mr. Abella: Yes, absolutely. The mutual fund is an equity income fund with the primary focus on generating an attractive income from equity investments and then secondarily to generate long-term capital gains.

TWST: How do you apply that philosophy to your strategies?

Mr. Abella: To get there, we search for stocks that we feel offer an attractive yield, and that's the starting point. Next we focus our effort in conducting thorough research to really get a sense if a target company can maintain their dividend. We have found that over time if a company can maintain its dividend, that really goes a long way to maintaining capital stability. We find that an attractive dividend, when maintained, does help to anchor the stock price longer term as we experience market volatility. We really want our income stream to be reliable, and we want our portfolio to have as low volatility as possible.

But from there it's important to help drive capital appreciation over time by having companies that can increase their dividend primarily through increasing revenue and increasing cash flow. So that also is a prime focus, finding companies that are able to increase their dividend. And all of this circles back to also finding companies that we feel are an attractive value. There will be some cases where stocks will be a little more pricey just because they are firing on all cylinders and doing great, and conversely there will be times when we will want to take a contrarian view and buy a stock that's a little beaten up. But on average, valuation is also a very important metric for us.

TWST: Can you talk about some of your top holdings that best exemplify this strategy?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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