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Jared Levy, Zacks Investors Service senior strategist, with his tips for making smart dividend investment picks.
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Are all of all the uncertainty.
Investors have been chasing dividend stocks and really driving the prices ups but -- now are they overbought -- accident here and -- for awhile.
And he still find ones that are worth your money.
Joining us now Jared Levy.
Senior equity strategist with Zacks investment -- shirts happy Friday -- glad you're here let's talk about this because for everybody comes on and says.
My stock that as a nice dividend and -- not you know what we do have a looming tax questions coming up as well.
Nearly today's statement to -- right -- did you talk to go by dividend stock the problem Tracy like you say this sort of sifting through all of the junk and fighting the quality companies so I started to look at three part plan real quick number one.
Is the company growing our is that earnings momentum healthy let's -- if everybody's buying given stocks are priced are going up regardless of their earnings are not delivering.
These companies.
May be in for a rude awakening so two things one use our Zacks rank it's free -- -- Zacks dot com just -- -- a -- -- a wondered to ranking.
That well you know they've got good earnings momentum number -- take a look at the PE multiple.
If it's really hide that 181920.
Higher than that there might be a little red flag an -- Take a look at something called -- peg ratio if that's over one and a half.
May be -- stocks a little bit ahead of itself and you might wanna take a breather.
Right and that kind of says you're growth he also got a look at the yield on these stocks to write because.
Hearing dividend per share you know it's it could change by the day you have a price that you let a few that you -- in some that you think again pricey.
Let's get right to tal international that you like this as a six point 7% dividend yield -- -- Yeah I like -- international again this is sort of like -- -- -- it's been making a comeback the -- finish shipping business and and this is banking on sort of a global.
Recovery albeit slowly right the bottom line is -- growing you know there's not a lot of expectation -- -- -- a big dividend yield as you said.
And and unlike other stops are more popular Johnson & Johnson which is -- I do not like here.
House still has room I think to grow and -- -- -- -- -- India yield in the meantime.
And that's go right today today than you think this thing as a little pricey lots of people -- JJ -- just said -- -- everyone's gonna need toothpaste.
Do we -- it.
But that's the comment that thing right Tracy for the past.
Five years ever I think you gotta get toothpaste look at J&J is trading at fifteen times earnings the -- ratios like four.
-- straight which means.
It means -- really really grow to meet expectations the bottom line is J&J is a little over saturated here.
After the dividend yield I just don't think it's -- Tracy I think it's better places to put your money.
Yeah I guess you can only so so much toothpaste and finally tennis -- -- is a master limited partnership which basically means that the tax benefits of -- limited partnership but liquidity by public company.
Right crickets and -- -- here's.
I think about job for great dividend yields and MLPs and -- hot ticket again it's very -- the space to be but you look at something like jealous and you got to realize.
It's got a lot of volatility right a lot -- -- are tied the president boil it boils dropping 1015%.
Well guess what.
These stocks are probably dropping 1050% two or more and their goes your 5% dividend yield -- the stock drops 15% using -- -- -- out there but there's a mouthpiece.
-- real quick we -- Dow and S&P 500 session lows right now where its market value is as a blip or are we on to something here.
-- -- a -- its options expiration today a lot of folks taken some profits here earnings.
-- had not been really stellar and remember it's Friday -- that little Google pick up.
And Microsoft Intel lot of those companies that -- I think we're cover mere obvious small buyer got good quality companies.
-- even Zacks investment -- happy Friday -- that any air happy.
