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Their cash into dividend paying stocks and hope of finding prosperity.
But be aware not all dividends are good in the long run.
Joining us with -- Russell pearl among the senior markets editor of smart money which has a piece on these dividend stocks on their website first and foremost Russell.
Why dividend stocks in the first.
Well I think people are finally tired of watching stocks go up and down 400 point today seemingly -- know it all how about we got rely on stocks actually price appreciating.
And actually get it guaranteed -- or mostly guaranteed -- -- fox every quarter in the form of dividends and traditionally dividends up until the 1980s.
Thirty to 40%.
Of your total stock return so this is almost kind of a back to the future moment for people going back to dividend.
I got an email from it's investor.
Earlier this week and they sit in L why has -- dividend of 18%.
Why wouldn't someone just finalists of the top dividend names in just pour their money to the top two or three.
It completes the start off the bat but forget to ask well why is that dividend yield.
So high in some cases it's because the stock price has been hammered.
Because there's problems with with the stock and there might be a problem at they won't be able pay out that dividend you saw that a lot 2008.
We saw dividend yields of Bank of America and Citibank and all these financial stocks -- yields look tremendously high but then ended up cutting their dividends and.
But not all of these companies that you're talking about are light and you know I think it can be confusing to our viewers out there when -- when.
Analysts think gas in an and experts out there come out and say -- dividend.
Paying stocks -- high dividend yields and and growth is important but.
Not all of them are made alike so how do we need siphon out the bad -- and picked a really good ones that are really well suited for our portfolio -- You put together a list of of decent dividend payouts a good place to start off the -- is.
At least for decent paying dividends look at ones that are paying yields above the ten year treasury right now which is not that tough.
I don't efforts to put 2% -- -- so that's a yes that's right you get you that gives you -- about a hundred companies that don't just start looking for household names look at someone like Verizon which has a five plus percent yield.
Right now price is not going away at the telephone company that they're they're going to be able to pay out.
Their dividends on a regular basis look at some -- even like Intel and Intel the microchip company sure they have.
-- swings in their profits but they're not going away they're paying a 4% yield so this -- these household.
Comp corporate names that are out there that are paying decent dividends and right now in terms of their stock prices -- not particularly.
Expensive and you're getting essentially paid totally.
So in other words are talking about a very favorable risk reward your principles shouldn't get -- may even go up right in the meantime you getting paid I guess the only argument we had -- -- earlier from UBS who -- like.
Investors should be aggressive right now.
And you know maybe He can buy stock that in a year from now -- be a 20%.
How people grappling with that.
Well that's certainly true there's certainly -- areas of the market that do look extraordinarily cheap you might wanna back up the truck and in those areas but at least on dividend stocks you it's your trading.
Kind of that that risk reward for some degree of certain certainty -- you can think of this almost as kind of a proxy for what your bond investments would have been now because.
These high quality companies are paying you.
Higher dividends and the tax treatment a lot cases essentially same.
On the at least -- comes to treasuries so there's no real tax difference and there is that potential that.
If the economy turns around the whole market might go up and your stock investment that you initially bought just for dividend.
Is up so no you should not be putting all your money into dividend paying stocks.
But at least.
Some of your stock portfolio to be going into these names where they pay dividends I like that Russell the idea of this replacing some bonds especially treasuries and also the notion of sleeping at night that's right Russell Robinson I want to thank you very much that you don't do it at Regina.
In today's tech connect women have taken over the -- -- yeah.
Again and also the 61% -- are now owned by women that is up from 46%.
One year ago.
But they tablet world remains ruled by men 57% of all tablet users continue to be -- given a differences in profile as it seems to make a lot of sense while Amazon.
The company will launch a tablet in October and it's sell that could lead to five milling unit sales just in the fourth quarter of this year.
The price -- biggest kind of gauger determine are whether or not the sales will come in at five million.
But many people saying it's -- be priced lower -- -- and many other rivals out there.
The plot thickens and all that I'm getting excited about it myself.
All of them -- Hyundai Accent that's right technology go to foxbusiness.com.
And click on -- can absolutely.
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