PORTFOLIO SPOTLIGHT as of earlier this spring, which presented Buchbinder and the fund’ s other four managers with plenty of opportunities to ascertain the intrinsic value of the stock.
“ I think one thing that’ s different about our fund is that if we were a pure low price-to-book or low P / E value strategy we would be forced to sell earlier some of our winners that we think still have great intrinsic value,” he says.“ That’ s why our fund might look a little more growthy than the value benchmark.”
“ I think one thing that’ s different about our fund is that if we were a pure low price-to-book or low P / E value strategy we would be forced to sell earlier some of our winners that we think still have great intrinsic value.”
— Chris Buchbinder, lead portfolio manager on the Capital Group Dividend Value ETF
subsequently reported strong earnings in 2023, so his fund ultimately made a timely and inexpensive purchase when you consider the substantial gain in Meta’ s stock price since then.
“ That’ s an example of finding intrinsic value that may not be reflected in how other people are classifying things as value or growth,” Buchbinder says.
And then there are Nvidia and Broadcom, two companies that have been key to the artificial intelligence revolution. Nvidia’ s graphics processing units have been the go-to chips behind the training and development of AI models, while Broadcom’ s application-specific integrated circuits help clients develop customized AI platforms. The share prices at both companies have zoomed during the past few years.
Buchbinder says his fund didn’ t hold a meaningful position in Nvidia until the company’ s stock price retreated after the tariff tantrum in early April 2025.
“ Our technology team has been doing a lot of work on AI as a theme, but there weren’ t many clear opportunities for this fund to participate. But during that selloff, Nvidia bottomed out at around $ 90,” he says, adding that at the time it was trading at about 11 times the following year’ s expected earnings.“ That’ s a substantial discount to the market and to our view of intrinsic value,” he says.
As for Broadcom, Buchbinder says the fund first added the company to the portfolio when it was a low P / E, highdividend-yielding stock.“ We have tremendous confidence in the CEO, Hock Tan. We’ ve been invested in him— not just in this fund— for a long time,” he says.“ At each stage of the company’ s development when the stock appreciates we re-examine whether we feel there’ s still attractive intrinsic value. If we think the value is still there on a fundamental basis then we’ re comfortable holding stocks.”
Broadcom’ s stock price had gained roughly 380 % during the past three years
Dividends As Defensive
The fund aims for a dividend yield before fees that is 30 % greater than the S & P 500. As of the end of March, the fund’ s yield was 1.48 % after expenses, or 18 % greater than the yield on the S & P 500. Those aren’ t boffo yields. But then again, yields on U. S. equities are low in large part because stock prices have been in a bull market since 2023, and yields shrink when stock prices grow.
As for Broadcom, the company recently offered investors a measly yield of less than 1 %. The yield was much larger before the stock catapulted upward. But it’ s important to note that the company’ s annual dividend rate of $ 2.60 per share offers significant equity income to investors who own a decent number of those shares.
Companies such as Broadcom demonstrate the way the managers of the Capital Group Dividend Value ETF think about dividends and income.
“ We think about income for this fund in two ways,” Buchbinder says. The first is the recognition that over time income is a very important part of shareholder returns. The other is that focusing on dividend payers narrows the investment universe to companies with strong cash flows and balance sheets and a commitment to pay a regular dividend.
“ You’ re getting more disciplined, more defensive and more stable companies,” Buchbinder offers.“ A big part of the dividend objective of this fund is to focus on that category of companies. That helps ensure that we’ re more defensive when
48 | FINANCIAL ADVISOR MAGAZINE | MAY / JUNE 2026 WWW. FA-MAG. COM