AIM Diversified Dividend ALCEAX

Morningstar Rating

Fund Research and Analysis

by Ryan Leggio

AIM Diversified Dividend has earned its all-weather stripes in the past couple of years.

For the most part, dividends are the name of the game here. This large-value fund buys companies with the goal of its overall portfolio having a dividend yield greater than the Russell 1000 Index's average (currently about 2%). Read more

Kudos

Reasonable expense ratio.

Fundamentally sound approach that blends long-term fundamentals with near-term catalysts.

Low turnover.

Rock-bottom volatility.

Good downside protection. Read more

Risks

Competition is fierce in the large-cap universe, and this fund has a moderate strategy, so it may have a hard time pulling past its peers at times, especially in strong rallies. Read more

Strategy

This fund focuses on firms with steady growth potential trading at reasonable valuations. Manager Meggan Walsh uses discounted cash-flow analysis that considers a firm's long-term prospects. She couples that with a two-year outlook to pinpoint companies with at least 30% upside potential in the near term. Read more

Management

Meggan Walsh has managed this fund since the end of 2002. She has also managed AIM Financial Services IFSAX since 2004. Jonathan Harrington, who was an investment analyst at various firms before joining AIM in 2001, became a comanager in April 2008. Read more

Inside Scoop

This fund is unlike the aggressive-growth funds that brought AIM fame in the late 1990s. Manager Meggan Walsh favors dividend-paying stalwarts that have sturdy long-term prospects. Read more

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