Future Dividends

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

If the dividend is high, let's say 20%, let's take something really absurd, 20%. But for instance, the payout rate was 30%. Why not? It's not a bit of a issue. If it's such a situation and yield, it's probably trading at a 1PE or something like that. Usually in the current market, that is a sign that they declare this company bankrupt for whatever reason. So for me, typically anything above 8% or 9%" rings all the alarm bells," he says.

In this episode, we share our thoughts on how we decide what to buy when the market is under stress.

At the beginning of the episode, we discuss the news of the week surrounding ECB rate hike and how this has caused some fear for Irish residents due to the eviction ban being lifted at the end of the month. We also discuss Pfizer ($PFE) and their decision to spend $43 billion to acquire Seagen. Is this cash-rich company squandering money?

Dividend Updates this week include Inditex, WP Carey and Vonovia.

In the main topic, we discuss how the current situation in the financial sector is influencing what we buy.

EDGI key takeaways include:

Avoid the blast zone at all times! You don’t need to be a hero
Look for high-quality stocks unrelated to the blast zone. However, often they hardly correct. Point in case: Texas Instruments, LVMH
However, insurance companies might still be worth considering. However, why are they dropping so much then?
Ideally, I would buy for instance Pharma stocks right now, or consumer staples
Energy is usually neither really a good idea because it’s very sensitive to consumer demand and expectations around that.
This is your time to gobble up some high-quality stocks. As an example, JNJ doesn’t look too bad at these prices.

Derek’s key takeaways include: