Also in this playlist...
This transcript is automatically generated
January of the year 2000.
It's during -- kind of cool not a paid dividends once again but it is the tech sector that showing leadership taking on the role of the new dividend tighten.
Joining me now from New York to -- the dividend kings -- -- tell you which ones to stay away from.
-- S&P senior index analyst Howard so what silver black -- so many are paying dividends finally.
Well the rises coming because companies in very good shape they're playing catch the earnings -- good so they have the ability to do it down and the site investors are demanding -- they want they want that.
Current income coming in the steady flow.
As good as well as the capital appreciation so the combination has done it technology typically does not pay.
And over the last five years they've gone from about five and a half a -- to the number two position if it's amazing.
Technology companies used to be the once known as the growth opportunities what they take the cash they made.
And then put it back into growing the company you're acquiring other companies and people said well OK they're sexy and exciting what's let -- do that.
Now they've woken up and realize that's not enough to get shareholders to -- enemy Microsoft is finally paying a dividend apple to.
But are those the dividend players that will push technology up above the other big -- I guess you could say which is the consumers.
Well apparently they August 2 August warned that they can't tenable dividends confident fourteen and have -- could come from consumer staples.
I was very steady dividend pay -- But this is an example in Google decided to pay it at the same -- of apple are about one point eight -- yield tech would be the largest pay it in dividends he -- This is unthinkable.
Five years ago much less in the ninety's when it -- You paid a dividend is you with shined and fuel that has nine vote the issue right it's so boring -- -- -- All AT&T type of fat you know widows and orphans kind of -- anyone that paid with -- eighty p.s in the IBM's now.
They they have the ability to do fourteen point senate cash.
They have compared to market value investors wanted to and have the opportunity.
Now let's talk about what to -- you say that.
You shouldn't be drawn and and and I guess it's sort of sucked and no other better way to say it -- by the ones that pay a huge dividend of which of those and why not.
What we won that from 200720082000.
Dividends on not an inalienable right and not a guarantee.
For caught in the highest yielding -- usually as a sign that the companies and.
Our struggle has some kind of difficulties it's basically old fights in the market's telling you something.
Did investing you -- long ten players so there what they're looking for now what we think they should be looking for.
Are companies that have shown.
A tendency to increase dividends it's part of their culture and their disappoint.
Have been making enough money apparently not just an earnings -- cash -- to support the business -- dividend.
And gloat so it does no good to get a high yielding -- an issue of let's say six or seven descends.
And then -- 10% of new -- soliciting invest is going into more moderately priced.
-- yielding stocks just before the senate they want a little bit more risk if utilities and telecommunications.
But generally -- in a risk that companies that pay year FDA if via.
I yielding any need that the 3% range and while that may not sound like a lot -- 3% compared to what -- getting to a bank with CD it is.
OK so on the on the list we have United Online look here's some of the highest dividend players -- had -- united on one for example.
Does it fit into that stay away category for you are you OK Glenn got it.
Just north -- what scenario again even -- high yielding stock is gonna kill a few more.
Reward but there's more -- the old story of that blinded dogs.
The ones the -- the most again give -- plays have a tendency to shy away they might have.
And gotten a little bit more.
Easy going in the -- 2000 Vietnam 56 and seven but -- definitely learned their lessons and get back to that risk reward scenario.
And and and -- -- issues that way with seeing stocks that -- more moderate on the yields.
-- the -- is refusing com for security.
Howard silver -- saying the dividends are not an inalienable right it's true they can take it away and Albania and that could take it away good to see thank you very much.
Thank you Howard silver -- our friend over -- S&P.
S&P for you now let's take a look.
At the top Dow dividend payers -- number three Dow dividend Payer is Merck the pharmaceutical giant has a yield of four point 40%.
Shares up nearly 4% and that's just here to date and for pharmaceuticals to phones let's flip it over Howard -- that the top dividend Payer.
Is typically Telecom you can also what utilities in there Verizon no exception the company is the second highest Dow dividend Payer.
With a yield of 5% nothing to sneeze up a stock up more than 8%.
Year over year and then the number one Dow dividend Payer one of -- dividend aristocrats is AT&T with a yield of five point 4%.
What do I -- used to telecoms really continue to do the shares of AT&T up more than 9%.
Year to date and there's the chart for AT&T closing bell ringing in exactly thirty minutes.
What Warren Buffett was told started portfolio nobody tells them what to do but was told -- portfolio from scratch but you -- only.
Filter by section