Wall Street Breakfast Handling volatility with long-term dividends
Dec 7, 2024
Explore how long-term dividend growth investing can weather market volatility. Discover strategies that prioritize future dividends over immediate gains. Hear insights on cash-rich companies like Visa and Microsoft, and learn how selecting quality dividend-paying stocks can mitigate risks. The conversation emphasizes the importance of a sound investment strategy for retirement planning.
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Invest in High-Quality Dividend Stocks
- Prioritize companies with strong free cash flow growth, like Microsoft, Visa, Meta, and Google.
- These high-quality businesses often pay dividends due to excess cash.
Dividends Don't Hinder Growth
- Dividends from companies like Meta and Google don't hinder growth; they reflect excess cash.
- These companies generate so much cash they can't reinvest it all effectively.
Meta's Metaverse Misstep
- Meta's $50 billion Metaverse investment yielded no returns, illustrating poor cash allocation.
- Paying out dividends would have been more beneficial for shareholders.