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Wall Street Breakfast

Dividends for a sliding market with Steven Cress

Oct 15, 2023
Steven Cress, Head of Quantitative Strategy at Seeking Alpha, discusses the benefits of investing in dividend stocks in a sliding market, including stability, reliable yields, and protection against inflation and market volatility. He also emphasizes the potential for capital appreciation compared to treasuries and highlights the importance of strong fundamentals and dividend metrics when buying stocks during a seasonally good period.
09:16

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Investors should prioritize dividend growth and safety over chasing high yields.
  • Market downturns provide an opportunity to buy dividend stocks with strong fundamentals and good dividend safety metrics.

Deep dives

Importance of Dividend Growth and Safety

In this podcast episode, the guest Steve Kress discusses the importance of focusing on dividend growth and safety when considering investing in dividend stocks. He warns against chasing high dividend yields, as it can indicate higher risk and potential problems with the company's fundamentals. Kress highlights the significance of dividend safety grades, stating that owning stocks with a grade of A+ to B- has averted 99% of dividend cuts since 2010. Conversely, stocks with a grade of C+ to F had a 93% chance of experiencing dividend cuts. He emphasizes the need for investors to prioritize dividend growth and safety over simply chasing yields.

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