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W.P. Stewart CIO Jim Tierney on how investors can boost their portfolios in this market.
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Or you but we've been hearing a lot of investors.
Who are looking for high dividend paying stocks over the past year remember we talked about the -- yesterday with Jack Bogle of vanguard -- my next guest says just like Jack.
Avoid them.
And with today's market selloff some of the top dividend paying stocks in the S&P look at that getting hit hard look at cliffs natural resources down a full four percentage points.
-- down two and a half percent let's bring in Jim Tierney WP Stewart chief investment officer joining Fox Business exclusive is this all about.
The tax change when it comes to dividends Howard let -- just stood there and said.
Yes it will hurt anybody who has dividend paying stocks because -- -- taxes go higher on dividends and you're going to be her.
It's really easy and let's just use -- T it as an example AT&T has a 5% yield.
15%.
Federal and let's say state is five C a 4% effective yield now.
If that gets -- doubled all the sudden your yield is 3%.
Are you gonna pay as much for 3% as he used to pay for four or I want more by as many shares -- you wouldn't buy as much or you'd go for something that's -- more about.
Capital gains on long term basis that can be deferred AT&T pulling back by just under 3% of components -- What's at the heart of the self selloff dirtier surprise that people are surprised.
I'm surprised I think there -- two things one yesterday was a very strong market so was up more than percent yesterday -- -- I don't know why we had the rally yesterday.
But secondly for the Republicans to go backwards in the senate.
Or not to make gains in the senate I think that was a surprise to most people are -- -- you know that the way a trader's mind works -- investors want works as I'm gonna look ahead try and judge how things are moving and then.
Find some safety yeah.
What traps -- they find as they look for safety what would you say.
Don't -- right now I mean to me they're good people are over paying for safety.
And where what whether it's bonds -- whether it's cash whether it's high dividend yielding stocks.
You're overpaying for safety I think the real way to make money in this market is to go out and find growth if -- a 2% GDP.
US economy for a long time.
You need to find companies that really can differentiate themselves what sectors have growth that will differentiate.
It's not so much -- sector -- a company it's a product it's a service that are truly world class that.
Have growth opportunities in the US and global.
That's what we're looking for a while coming up -- is gonna get more specific on exactly what he's talking about.
