Schafer Cullen International High Dividend ADR Value Equity


Investment Process

The Schafer Cullen investment team relies heavily on fundamental research as part of its investment selection process. Because the firm has a disciplined value investment philosophy, a rigorous review of company fundamentals vs. industry peer and the overall market is an important part of the investment process.

Screen For Value:

  • Screen universe of ADRs and Canadian Stocks With +3% Yields For:
    • Low P/E Ratios
    • High Dividend Yield
    • Long-term DPS Growth
    • Long-Term EPS Growth
  • Sector and Industry Inflection Points

Fundamental Research:

  • Attractive Valuations
  • Dominant Company Characteristics
  • Catalysts for Price and EPS Appreciation
  • Superior Dividend Policies
  • Stable Macroeconomic and Geopolitical Environment

Portfolio Construction:

  • Approximately 35-45 holdings
  • No more than 30% in any one sector at cost
  • No more than 15% in any one industry at cost
  • No more than 5% in any one stock at cost
  • Generally, no more than 20% in any one country at cost
  • Top 10 holdings typically represent 35 – 40%
  • Approx. 90% in ADRs
  • Continual Portfolio Upgrade

Sell Discipline:

  • Price objectives reached
  • Earnings growth not realized
  • Deteriorating fundamentals
  • Tax reasons
  • Changes in dividend policy
  • Overvaluation
  • Change in Market Thesis
  • Portfolio Upgrade