This chapter examines how interest rates affect dividend stocks, stressing the importance of a company's fundamental strength over short-term fluctuations. It highlights the benefits of dividend investing for young investors and dispels myths surrounding dividend-paying companies' growth potential. Through historical examples and a case study of Pool Corp, the chapter emphasizes reliable dividend growth while considering the financial health and sustainability of dividend payouts.
Right now, the S&P 500 is paying a paltry 1.3% dividend yield. The only time it’s been lower than that was during the dot-com boom.
Matt Argesinger and Anthony Schiavone lead The Motley Fool’s Dividend Investor portfolio. They joined Mary Long for a conversation about:
- Why companies pay dividends.
- How to tell if a company’s payout is sustainable.
- Dividend payers including Pool Corp, Nike, and Starbucks
Companies/tickers mentioned: HSY, FAST, POOL, NKE, SPG, SBUX, CMG, SPG, SCHD
Host: Mary Long
Guests: Matt Argersinger, Anthony Schiavone
Producer: Ricky Mulvey
Engineer: Tim Sparks
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