AEL sells index annuities, which pay out a specific rate based on the performance of an underlying market index. The company selling these annuities can essentially invest the float coming in from annuitants into index funds. So it's kind of they're now taking on both sides of the risk handle here.
One key ingredient in Warren Buffett’s “Secret Sauce” is stocks that pay a dividend, but then you’ve got to let them simmer for a very long time.
(00:21) Jim Gillies and Ricky Mulvey discuss: - Walgreens Boot Alliance’s disappointing 3rd quarter. - The pharmacy chain’s turnaround story. - What to look for in investor presentations. - Why investors are cheering Brookfield’s $4.3 billion bid for life insurance company, American Equity.
Plus, (11:54) Robert Brokamp and Matt Argersinger discuss the fundamentals and tradeoffs of owning dividend payers.
Companies mentioned: WBA, BN, BAM, AEL, KO, AMX, MO, HD, AOS, PLD
Links: Rule Your Retirement article: https://www.fool.com/premium/rule-your-retirement/coverage/1062/coverage/2023/05/26/how-buffetts-secret-sauce-could-pay-for-your-retir/
Dividend Knights list: https://docs.google.com/spreadsheets/u/1/d/1-OPCz9pXOcgFqmbMR3wxREg4O7ws_qWW8RWqKPYn1D4/edit#gid=0
Host: Ricky Mulvey Guests: Jim Gillies, Robert Brokamp, Matt Argersinger Engineer: Dan Boyd
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