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Ariel Investments vice chairman Charles Bobrinskoy gives his outlook for S&P 500 company dividend payouts.
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-- the stock alerted shareholders of the cash again this year according to the Al Wall Street Journal CFO report.
402.
Companies in the S&P 500 paying a shareholder dividends this year.
The highest number since 1999.
We have Charlie -- -- -- as a vice chairman -- director.
Search -- aerial investments joining us and I know you like dividend paying stocks to begin with -- engine.
-- particularly in this environment or interest rates are so low with a ten year treasury at one point 7%.
People are looking for yields and so when companies pay out earnings in dividends that's very attractive to investors right now.
Here -- -- looking at it there's the ten year yield.
165 today we are looking at -- -- yesterday at a got BlackRock and how.
You know on dividend yielding stocks -- for over even the long term you've done so much better because -- these low treasury yields is -- an environment.
When you compare stocks to bonds -- -- environment that you think we'll change anytime soon or do you stick with that there's that chart to compares to the guy Charlie.
Yeah I actually don't think it's gonna change anytime soon because I don't think interest rates are gonna go up any time soon I think we're gonna have relatively low interest rates for the next couple years if not longer.
If we have this kind of low inflation environment relatively modest growth.
We're gonna have people searching for yield and so -- Johnson & Johnson can pay a dividend that's 3% -- Microsoft to two and a half percent that looks very good compared to alternatives.
Okay see you pick out some of those stocks and then you mentioned some of the the big names there you also -- through its interest and it's good when someone comes -- -- just real specific suggestions you like some of the money managers.
Pay in this an RN and Intel's with the logic behind that is.
While the stocks are very cheap because the stock market hasn't gone anywhere for awhile and so the revenues haven't gone up much.
But it's a wonderful business in that it doesn't cost you anymore.
When money comes in if -- Janice your money management firm.
And you get an extra two billion dollars to comes in the door as it did did today Janice your costs don't go up at all so -- -- that extra revenue drops right to the bottom line.
And it's a very highly leveraged operating -- -- Stock up on news today she mentioned Janice is we look at some of your disclosures here and KKR and and and Blackstone -- all you own all three.
Of those says so it's not rest is not one over the others the group you like you like a mall.
Well we like the I don't like all our money managers but I like Janice a lot chances extremely cheap.
It's one of the few great growth money managers left and this deal today it's gonna provide them -- jet with the Japanese investor who's gonna help distribute their product in.
Japan.
It's a very positive deal for Janice -- -- we also like KKR and Blackstone a lot.
These stocks are very cheap right now even though they have been excellent growth and alternative management private equity hedge funds.
Blackstone and KKR.
Businesses that you're not Hollywood -- love to have been partners in those businesses now we have an opportunity to really become your partner with Henry Kravis.
Sure how well off so this -- guess -- stock ownership is all about -- children's toy for Mariel get some specific ideas what he likes what he's buying thanks for joining us.
Thanks for having me.
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