After years of lagging the S&P 500, Steven Adams is among the best-performing money managers in 2016 thanks to a surge in dividend stocks.
Mr. Adams, manager of a small portfolio in Dallas, holds dividend-paying stocks including energy companies like
His dividend-focused holdings have helped ricochet his fund to the top of its peer group. The $27 million Stock Dividend Fund Inc. is up 25% this year, helped by stabilizing energy stocks, after losing 16.78% in 2015. Overall, assets in mutual funds and exchange-traded funds focused on dividend-paying shares have swelled to $672.6 billion, nearly double the $367.3 billion in assets those funds held at the end of 2011, according to Morningstar.
But this growth has led to concern from many that the area has become overheated.
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