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Alpine Dynamic Dividend fund manager Kevin Shacknofsky on how investors can gain from dividend stocks.
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Dividend fund how many of you have been buying stocks.
The pay out dividends because you figure that's the safest thing right now gives you a little bit of risk but at least -- -- paid no matter what well that fund.
Is really focused on dividends it's down 17%.
Over the past year that's the bad news the good news popping up yields of about 13%.
So what in this fund.
Is the secret sauce for trading on dividends Kevin -- -- is Alpine dividend dynamic fund manager spending the last hour trading with us and Fox Business exclusive.
-- crystal ball here for a minute.
Momentum.
-- -- point for the second half of this year as you look at some real questionable moves in the markets lately right so.
I mean when you look at the temperature of the markets the temperature over in Europe seems to be heating up again and unique look at days like yesterday we in Europe had a really bad day and -- US followed suit.
You know the short term is looking challenge.
Well but you got a surprise with the Dutch government collapsing June -- I mean if he said on Friday.
Watch out for the Dutch governments are gonna cause some problems in the US markets people -- said.
This is a headline driven market here the retail investor.
Is the best way still to be sitting there on dividend stocks waiting for them to hatch dividends no matter what the actual fund that you -- is -- -- now -- -- -- comparison to what's driving the markets you go weak macro policy.
And then you got government response you did you have the united QB to you have to LT Europe.
So you know this response and -- the markets have been able to navigate through.
So being in the market as you've been able to make money and -- -- the best performing stocks have been dividend stocks.
We've been providing -- yields and treasuries and that the question is which didn't stop she gonna be known globally large cap may be -- diversified.
Strong franchise businesses where you have safety and security and income and given our teach people right now what are the three things -- should look for if they wanna follow your religion and that is trading through dividends.
Yes you know the critical thing about a dividend is.
Is is you -- -- know the sustainability.
And that it's -- you look at the payout ratio.
And then also what -- the key indication of of the -- -- ability of the dividend is the growth in the dividend.
If if this payout -- -- high mislabeled to grow the dividend without growing the payout ratio you know that did the company is very -- confident confidence in this trivia chooses.
We'll go for that be a magnet -- that or CLX.
-- it and a lot of instances especially going to be an indication of a company with very strong capital management and very strong focus on which and an equity.
If the company does not believe that it can generate its -- -- its cost to capital.
-- -- -- -- -- -- -- -- -- -- -- That's dishonor very strong management team and as an indicator of -- good investment -- should give some example of the stock that investors should be looking ahead to buy in advance of something like this.
I'm asking I'm asking you to share your proprietary information folks out.
-- -- show pool and company and its got to pay.
Justice dividend at the end of this quarter of them ended June is Sara Lee across.
And this is a company that was -- of the conglomerates.
And the management team should should -- split up the two separate business units and and and and and and they should get that excess cash to -- -- So it's gonna pay a three dollar and special demanded they ended June and tuning -- you know around -- 14% yield which is quite attractive it's a beautiful chart certainly since December which this is something the people watched very closely where -- -- to -- a lot of stocks have done rather well but you say there's more room to run Sara -- -- -- -- thing about this company is it's being.
You know turned around especially the coffee business has a lot of opportunity to to turn around and and and and growth and instinct in their brands and take market share so there's a lot of opportunities.
To date -- the banana cake with food from you know the frosting that extra roll like a carpet and understand the prospects are -- -- -- name more names.
