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Can Investors Still Benefit from Dividends?
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FBN’s Liz MacDonald on the outlook for dividend increases and stock buybacks.
- Duration 2:36
- Date Mar 8, 2013
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FBN’s Liz MacDonald on the outlook for dividend increases and stock buybacks.
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So -- charging the stock market all the rectal pay -- from companies in the form of dividend and stock buybacks.
Don't worry you did miss out on the ride we've couple stocks to consider an owl and a period.
There -- -- bottom line.
Like a nail biter right at all like -- we missed the run out what we get an alien and -- -- -- -- -- we talked to Goldman Sachs JPMorgan Chase HSBC.
And look at this number guys this is an amazing number 300 billion dollars in.
Basically dividend payouts expected between thirteen isn't that something is up from 282 last year.
And also stock buybacks just for the month of last month -- -- nearly a 118 billion.
And that's up dramatically as -- also.
That the name of the game is to get into the slowest tortoises you know and dividends slow growers and -- a lot of companies that there have been didn't paying dividends for less -- a five years like Colgate -- Johnson Johnson who look at the company is this year so far we've got the names that have been increasing dividends this year you gonna -- Comcast UPS.
PepsiCo.
Of course Sharon women Williams has been doing it Jack Henry KKR memorial aren't so -- -- not so its earliest that we've got you got like 1516.
Companies actually increasing dividend since there's so many companies have a lot of cash on the on the old balance -- yeah.
That that.
Helping -- Lucian hold the -- cash and about she is actually up again to now one point eight trillion bucks.
But the question is any wire companies issuing dividends now I mean the tax hikes are kicking and I think -- you -- -- that.
And I think that this is what the best way that they they think they can keep their investors in the door isn't.
Regardless of the tax hike I think what 24% -- all limit tax rate right -- He about it yes do you buy the stock -- thing you know myself by that amount she writes suck but that's elect living with a girl the dividends sexy -- -- -- as you know noncommittal.
It is not committed we don't look -- -- -- -- -- -- buyback can only do it for one year and the very doesn't care but if you cut your dividend.
You stock gets cut.
Yeah that's a good point but you know who is very much committed to stock buybacks were finding.
A corps corporal corporate executives because -- like that the earnings per share number in my rooms you know why because their own compensation is tech today.
Including yes I can MSCI don't they like gets so they'll do the buy back up trillion dollars in stock but buybacks since 20092 biggest companies in the what to do with the cash.
During a downturn right so this is one of the ways to deploy it that and dividends.
Interesting stuff it is -- -- please don't you know because capital expenditures to look -- -- yeah they're right it really -- half of them don't even work with the lights on these things just came by cancel -- who cuts cutting back right there exactly.
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