You're watching...
WBI Investments CEO Don Schreiber on why there are still great opportunities in dividend stocks.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
We did tell you the good piece of news the S&P Case Shiller Index I mean could this really be.
Of the floor here of -- housing recovery that we start to move higher prices were up in July it's actually a -- the fourth straight month.
Dot Shriver WBI investments CEO and portfolio manager says.
You can profit still from these numbers and from he believes is what an economic recovery is forming don't spending the last hour of trading.
With us and and by the -- -- runs the absolute.
Return did dividend fund -- up your debate about 12% but -- for Europe 25%.
To what do you attribute that is at all said jumping in and putting a nice liquidity bubble underneath.
I think it week we've got -- fundamentals on the earnings side revenues have been growing very strongly so you don't believe Teddy know what to every single quarter.
Analysts that negative and -- -- the earnings that are coming out.
We're just about ready to see another quarter of surprisingly good earnings compared to what the analysts expect.
In our opinion -- at this is your font nice nice fund picture at least over here to date and Europe for here.
What's the mean.
Flux of main focus of it.
We -- we buy dividend paying stocks exclusively.
We like that return that you get from dividends every single quarter and one of the great things is that.
We're kind of in the golden age of dividend investment because companies are increasing dividends.
At the fastest pace in history and there's plenty of room for them to continue to increase -- what -- can ask does that continue it seems like it.
Feels like a little long in the tooth with a talking about it here and -- half it it actually isn't I mean we have.
-- dividend payout ratios that's how much of the percentage of earnings that companies are paying out are still way below the normal historical average on all of the major indexes so.
Companies are being printing a lot of earnings it's building up in cash and the returning the cash.
Back to shareholders which we think is great okay so we got the case Shiller number out looking at your top holdings here I don't see at least at the moment on -- chart.
-- housing related stocks but you didn't like one in particular but we do -- Loews Corp.
hello love -- still are you adding to your position.
Well I think that you know we we're not adding to the position we don't -- typically do that.
We're not an accumulate -- we buy stocks when they're cheap we try to sell them when they get more expensive.
By -- strong ties to big -- -- I know but you know that's what we do we collected dividends where we wait for stocks to appreciate.
Lowe's is got a good dividend yield about two point 1% it's still reasonably valued if we get a follow through with housing which we think we're going to.
We think this is the beginning.
Of the story in housing housing used to be twice the impact it is today in GDP.
The whole housing sector yup it was 14% of GDP before the crisis it's now only about 7%.
-- GDP so all those related industries get a lift as everybody continues.
To support housing.
Where in the business of business news the trend in news flow as it pertains to stocks.
Has been incredibly negative at least over July and early August especially because we were yanked around by the -- that is Europe.
Sure now how was -- balancing.
-- well I think that that the we watch this any negative news trends have eased a little that we it's not nearly as toxic it as it was for investors.
That's what we've got confidence rising and strong.
You don't -- Posner.
Indicated that you know closer.
-- -- -- Indicated the QE -- networking QE2 -- sector we have confidence rising in the US.
We do have economic growth so I would say that yes it's not enough and likely.
We we need to follow through on the fiscal side that this is looking.
You know like its supporters to the US story.
I'd like the tone of what -- has to say now I need some real dirt he's gonna come up with some stock names that he loves right now but in the --
