All in the Name: Large-Values Are a Great Buy

Another steady large-value fund is Oppenheimer Equity Income(OAEIX), which has returned 4.4% annually during the past decade. Portfolio manager Michael Levine seeks companies with below-average prices that have above-average growth prospects. These days he has a big stake in financials. A top holding is JPMorgan Chase(JPM). After slashing its dividend during the financial crisis, the company has been bouncing back. "Earnings are improving, and there should be a nice step up in dividends over the next 12 or 18 months," Levine says.

He also likes MetLife(MET). A recent acquisition from AIG(AIG) should help the insurer improve its return on equity, Levine says.

To collect rich dividends, consider Prudential Jennison Equity Income(SPQAX), which yields 4.3% and has returned 3.3% annually during the past decade. The fund owns a mix of dividend-paying stocks. Some holdings are slow-growing stocks that pay dividend yields of more than 5%. Most of the rest of the assets are in companies with faster growth and smaller dividends. The aim is to hold a diversified portfolio that will pay rich yields and also offer some growth potential.

A slow-growth holding is B&G Foods(BGS), which yields 6.4% and sells food staples, including pickles, beans and maple syrup. "This is a steady business that can grow incrementally by acquiring new brands," Prudential(PRU) portfolio manager Shaun Hong says.

A holding with better growth prospects is America Movil(AMX), which yields 0.50% and is a dominant provider of cellular service in Mexico. The company has plenty of cash and should use some of it to raise the dividend, Hong says.

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