You're watching...
Kaltbaum Capital Management’s Gary Kaltbaum on why investors should consider dividend-paying stocks for their portfolios.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Interesting stuff in focus tonight getting paid to invest.
There are more S&P 500 companies paying investors dividends now than it any other point in the past thirteen years and it's.
Not just the old stock -- industrial stocks that are paying -- or or consumer Staples anymore.
Tech stocks like apple just -- Just as I mentioned are giving investors back some of their money in the form of dividends is this a Smart place to invest joining me now Gary call Bob from called -- capital management.
Here is seems like everybody's new favorite thing to play.
-- make sure you by the dividends why is that.
Well it gives you a stream of -- come and you know that takes away a little bit of the -- but just realize.
Most dividends of paying two -- 3% if something dropped 20%.
You're you you lose a lot of -- -- -- always be careful regardless of dividends I think have tech at company operators been forced into playing this game.
I think what you pat you've had a couple of things number one.
Is that a lot of these bigger tech companies were buying back their own shares throughout all the two thousands.
And they were getting creamed -- on -- wasting their own money and then they realize they can do something better and I think -- was just a clamoring from investors you heard the buzz.
And first thought was Microsoft started coming out -- and Intel.
And -- you sing some more of them and I expect out mortars to show up because once a -- start doing with the rest usually follows suit well.
It -- it.
Usually when you see it dividend paying -- you have certain expectations of their performance over time they're going to be more steady state like a utility not running around a lot of what you're really getting -- dividend.
He can't play that game -- tech stocks came.
I think overall you can't but in the case of some of the mega cap names.
You some what can the way Microsoft and Cisco when bill trade right now -- which trade like utility stocks.
And that's because they just gargantuan companies -- a lot of shares outstanding.
So they -- have low -- of his vs the market so yeah I think with those -- like an apple that's still -- a little bit on the crazy side higher beta vs the markets.
Aussie got to be a little bit more current careful with things like that.
So 14%.
Tech stocks in the S&P 500 are paying dividends today.
And those dividends tend to be -- average up comparing -- tier 2.0 2%.
Compared to the S&P 502 point 54% so they're not paying quite as much as the overall it's a big.
But they're doing pretty well.
Is this going to be sustainable or is this gonna turn out to be a -- I think it's going to be sustainable they realize they're wrong -- something just realized.
That they want investors to you know -- all these big mutual funds that invest in dividend paying companies.
Buying into these companies -- in the past they were not able to -- same goes for like big pensions and things like that.
That could knocked -- -- at the something that had no dividend so believe me.
There is a method to the -- here.
And and it's somewhat working looked at the buy it -- telling get I think 3.4 percent right now.
Is pretty darn good vs getting zero and dis remember everything was adjusted vs.
What interest rates troubling you have money market rates paying zero and a 3.4 percent -- a lot higher.
Exactly that.
Is even paying attention to tax me get now because all these beautiful -- they're gonna go down the drain shortly if nothing happens for a lot that's all you got.
Well -- in the camp that somewhere somehow I try to be positive that they gonna do something about it because of nothing gets done.
I believe dividend that capital gains and dividends gonna triple but just realized.
That's for next year and they got plenty of time to work this out and I am a 100% sure they will.
Or else the economy will go right into the crap for the -- it will get hit hard.
And that's -- last thing any of these politicians want I think well from your lips to God's -- Why don't we have Iberia Bill Gross repeating his claim that stocks are over -- investing in these old fashioned things anymore.
You know what I think -- I think he should just keep on talking because the market just goes up and up and up what do you say.
Well for far -- it -- -- to book to say something up bad about somebody who's worth billions.
Maybe should stick the bonds.
A look out over time equities will do better just remember something I think get Harry Dent coming out that right now.
Talking about 5000 on the downwind of the secular bear market but I got news for both of them.
This stored in the year 2000.
And secular bear markets usually last twelve to sixteen years.
I think we're in the late stages of the secular bear and if we can work -- the of the deficits and some this other stuff that's going on.
I think we're headed in the next few years when another secular bull markets like out of there on the wrong wrong side of the tracks right now carry love your bullish -- thanks for coming on tonight appreciate it.
My pleasure thank you.
