KEELEY Funds Dividend Value Strategy

Dividend Value Approach

A Focus on Smaller Company Investing with Lower Volatility

Our Dividend Value strategies serve the needs of clients who wish to benefit from Keeley’s expertise in small- and mid-cap value investing while attempting to mitigate the volatility typically associated with these asset classes. Over the full market cycle, dividend-paying stocks of smaller companies have historically outperformed similar-sized stocks that have not paid a dividend. We believe dividends reflect a company’s financial health—today and into the future—and that paying a dividend is generally a wise use of a smaller company’s free cash flow, unlike other potential uses.

However, not all dividend payers are equal. We use fundamental, bottom-up analysis to identify dividend-paying stocks that both trade below our assessment of intrinsic value and are supported by:
  • Positive and sustainable free cash flow
  • Strong franchises with effective management teams
  • Sound finances and healthy balance sheets

Dividend Value Approach


Dividend Value Process Highlight

Once we have identified a potential addition to the portfolio, our Research Analysts evaluate the company from three perspectives:

  • Quality

    Seek advantages such as dominant market position, product patents or unique process/production

  • Timing

    Seek developments such as new product or management, change in dividend policy or upturn in industry cycle

  • Valuation

    Assess factors such as price/earnings relative to peers and to history, and cash flow/dividend yield

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. The prospectus, which contains more complete information about this and other matters, should be read carefully before investing. To obtain a prospectus, please call 800-422-3554 or visit