US-based dividend payers can raise distributions because of huge cash hoards. Global dividend stocks will likely see payout boosts arising from organic sales growth, making global payouts more sustainable than domestic fare. This fund will allow you to take advantage of both foreign and domestic dividend growth.

Dividend-focused funds have fallen out of favor of late. As uncertainty loomed over the fate of the tax cuts implemented by George W. Bush, emerging-market and pure-growth fare have enjoyed strong inflows. When Democrats controlled Congress, those favorable tax rates for dividends and capital gains seemed destined to sunset in 2011.

But after the Republicans gained the majority in the US House of Representatives, many analysts and politicos now bet that lower taxes are here to stay–at least for now. That should make dividend-focused mutual funds all the more appealing.

It’s a welcome development. According to Standard & Poor’s, dividends accounted for almost 35 percent of S&P 500’s monthly total return between 1926 and 2009.

The classic value-style investment strategy practiced by William Browne, Thomas Shrager, John Spears and Robert Wycoff, managers of Tweedy, Browne Worldwide High Dividend Value (TBHDX), offers investors high current income with some downside protection. The team focuses on names with higher-than-average yields that trade at discounts to management’s estimate of intrinsic value. The team looks for global companies with a history of increasing dividends. These companies usually are exiting a rough patch while also improving fundamentals. This global approach also allows the team to leverage the growth of economies outside the US.

Working from that basic framework, managers utilize a four-step, bottom-up investment process. Companies are first screened for dividend yields greater than the S&P 500, in the case of US-based companies, or the MSCI World Index. From there, companies without a history of increasing earnings and dividends are eliminated. Next, firms that exceed management’s estimates of intrinsic value are removed from consideration. The remaining candidates are passed along to the four-man management team for final selection.

If the management team can’t find suitable candidates, they aren’t shy about holding cash; the fund currently has a cash position of 15 percent.

That approach has protected the fund from the worst shocks of the financial crisis. In 2008 the fund outperformed the broad market with a 29.4 percent decline–far better than the MSCI World Index’s 40.7 percent loss. This ability to stanch the bleeding largely stemmed from management’s policy to avoid companies in sectors suffering from secular issues–the portfolio was light on financial names. In 2009 the fund returned a respectable 28.2 percent and has gained 6.5 percent through the end of October.

Among the fund’s top performers in the past year is Novartis (Switzerland: NOVN), whose pharmaceutical and nutritional product line includes treatments for hypertension, cancer and cardiovascular disease. With a 3.1 percent weighting in the portfolio, Novartis contributed greatly to Tweedy, Browne Worldwide High Dividend Value’s performance by posting a 32.5 percent over the past year.

The fund has allocated a 3.4 percent weighting to Philip Morris International (NYSE: PM), maker of the iconic Marlboro cigarettes. Philip Morris has gained 20.3 percent this year. Other major contributors include British American Tobacco (LSE: BATS), Genuine Parts (NYSE: GPC) and Vodafone (LSE: VOD).

Management tends to avoid cyclical companies, so the fund is extremely heavy on consumer staples, which account for about 30 percent of the fund’s 37 positions. However, despite having a mandate that allows the fund to scour the globe for investment opportunities, 35.3 percent of holdings are US-based. The next largest allocations are to the UK (14.9 percent) and Switzerland (11.3 percent).

The fund does carry some risk. Although it returned more than 28 percent in 2008, it lagged the majority of its peers as more speculative fare and emerging-market names rallied hard. Given its large position in US equities, it generally doesn’t hedge its currency exposure despite making the majority of its trades on local exchanges. Expect the fund to underperform during speculative rallies and when the US dollar is strong.

But assuming that the current tax policies remain intact and the Federal Reserve’s quantitative easing program continues apace, Tweedy, Browne Worldwide High Dividend Value should enjoy a favorable 2011.