Brookfield Reinsurance: A Cash in Stock Bid to Buy American Equity Investment Life-Holding for $4.3 Billion

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There is a lot of debt here. I don't imagine that's gotten cheaper over the past 15 months given the interest rate scenario we've been living through. Valuation multiples are essentially also trading at 10-year lows. It just seems like they want to throw so much at you that maybe you'll be distracted by the fact that, again, this is a company where the stock price today is lower than it was a decade ago. You best like that dividend because that's all you're going to get for a while.

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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