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Clearbridge Advisors Senior Portfolio Manager Hersh Cohen on the benefits of dividend stocks for investors.
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Where do you go where do you five dollars.
For your portfolio well some would say there -- dollars and then there dividends that's the core message from Hersh Cohen he's senior portfolio manager and chief investment officer.
With clear -- advisors eight billion dollars in assets under management.
The dividend play is -- get tired.
Opportunity has feel like over the past year he's just you're giving me dirty looks -- -- over the past year -- -- -- look equivocal.
It's been a crowded trade -- dividends.
In the in the last decade when stocks -- -- negatively one and a half percent a year dividends -- up.
Even the S&P 500 dividends -- up 5% a year.
And portfolios we manage were up.
At least 50% more -- that as we managed to avoid the one for the big dividend cuts were the financial so different has always been a good story regardless of Sino -- when asked what the tax rate goes up first what we don't know that's a given.
Second of all dividends -- up.
There many companies -- -- raising dividends for 405060.
Years consecutively does that imply that they're going to stop I would say no different it's a good story.
You run where else will people get raises now that doesn't mean the stocks can't go down.
But if people are willing to look not at the asset value of their statement every month but rather the income every year I think they may be ahead -- -- -- you know what -- to.
-- something interesting where else will people get raises if not from their jobs.
-- did you get them from stocks that tend to add a couple of pennies here and there but -- they've raised the dividend.
-- on the let me -- -- -- -- you know pennies in many instances.
So -- in some cases yes the equity income builder fund SO PAX year to date up about seven point 6%.
You're not beating the S and chief that the moment -- we angels as we crusted last year last year -- crashed it OK so timing is everything.
Three years over three years here in Europe about 18% so let's talk about what's in this fund you know ExxonMobil Chevron Wal-Mart apple apple doesn't get well it just announced it would give a little teeny dividend.
Real excited heard disappointed by what they announced.
We bought apple.
In the summer of 2010.
Thinking that Steve Jobs who would pay a dividend not not being in his mind at the time obviously because he was.
I didn't realize you'd never pay dividend that we were thinking.
That there was fear that the dividend tax be raised by year end we thought maybe they would started dividend pay a special -- -- we bought apple.
We have -- and -- fund to -- A certain number of stocks that don't pay dividends we don't have I -- The only two we have grappling Berkshire I'm sorry the question is was I disappointed -- -- dividend they finally paid a dividend.
Apple could afford to pay a much bigger dividend so the answer is yes I was disappointed.
In the level of the dividend they paid no happy they're paying a dividend hopefully you'll be on a rising.
Course -- has a lot of names he's not disappointed in as far as dividends are concerned coming up he's going to name them for you he feels they are still very much.
