economy
January 30, 2026
This dividend fund is one of Morningstar's best for 2026. Here are its manager’s top stock picks
"If you can keep them in the market and then capture enough of the upside over time, you can really help people build wealth ...," the fund manager said.
TL;DR
- Michael Barclay, lead portfolio manager of the Columbia Dividend Income Fund, aims for consistent wealth building by minimizing volatility and maximizing risk-adjusted returns.
- The fund focuses on stocks with a history of dividend growth, deriving 60-70% of returns from capital appreciation and 30-40% from income.
- Barclay identifies large-cap pharmaceutical companies as a key opportunity, noting improved fundamentals and solid free cash flow.
- Top pharmaceutical picks include Johnson & Johnson, praised for its cash flow, balance sheet, management, and diverse drug pipeline, and AbbVie, which is seeing growth from new immunology treatments.
- Financial stocks, including JPMorgan Chase and Bank of America, are also favored due to their diversification and resilience, benefiting from current capital markets momentum.
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