William w. priest, cfa, cpa, has forty years of experience in the investment management industry, almost all of it as an investment analyst and portfolio manager. Before forming Epoch Investment Partners with three associates in 2004, he spent most of his career at Credit Suisse Asset Management-Americas, and its predecessor firm, BEA Associates, where he was a cofounder in the early 1970's. Priest served as chairman, CEO, and portfolio manager of CSAM-Americas, and CEO and portfolio manager of BEA. He is a CFA, a CPA, and a graduate of both Duke University and the University of Pennsylvania Wharton Graduate School of Business. Priest is the author of several published articles on investing and finance including the book, The Financial Reality of Pension Funding Under ERISA.

Lindsay hatton mcclelland was an investment banking analyst in Merrill Lynch's Retail and Consumer Products Group and an associate vice president at Financial Dynamics, where she specialized in corporate communications and investor relations. She is a graduate of Williams College and received her MFA from New York University's Graduate School of the Arts and Sciences.

Foreword ix

Preface xiii

Acknowledgments xv

Part One Defining Free Cash Flow and Shareholder Yield

Chapter 1 Free Cash Flow 3

Chapter 2 The Sources of Equity Return 23

Chapter 3 Shareholder Yield in Depth 39

Chapter 4 Focus on Dividends 59

Part Two The New Investment Landscape

Chapter 5 Globalization 67

Chapter 6 Interest Rates, Bubbles, and Punctuated Equilibriums 95

Part Three Strategies for the New Investment Landscape

Chapter 7 Investing in Today's Capital Markets 133

Appendix Continuous-Time Free Cash Flow Valuation Framework 143

Notes 157

References 163

Index 165