Dividend investing has momentum and room to grow — possibly even faster than earnings this year — despite low payout ratios as companies hoard cash, Chris Leavy, BlackRock CIO, told CNBC Thursday. Leavy, who advises on BlackRock’s $275 billion in actively managed equities, attributes his optimism to three things: inflows of only $22 billion last year, compared with more than $100 billion for the past three years for bonds; companies making 12 to 14 times earnings and paying out reasonable dividends; and the growing number of investors dissatisfied with the low interest rate on their savings.
Leavy said a reasonable dividend means you don’t necessarily have to reach for the highest yields possible. “You want an above-average dividend yield, but you really want to focus on dividend growth,” Leavy said. “Most people are going to have a very long retirement. [With] a fixed coupon … that purchasing power isn’t going to grow.” He also advises investors to avoid companies with over-leveraged balance sheets. Leavy’s top picks include global consumer companies like Coca-Cola. Investors “can ride the growth of the middle class in some of the emerging economies,” he said.
Source: The Christian Science Monitor
Related Articles:
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
- 9 Stocks With a Sustainable Dividend
- 11 Low Beta, High Quality Dividend Stocks
- Five Dividend Stocks To Buy On A Dip
More Gains Ahead For Dividend Stocks
Posted by D4L | Monday, March 19, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
When many investors think about tech stocks, they often think first about high-growth names that come with outsized risk -- not mature, divi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.