CNBC.com recently quoted excerpts from one of our blogs about the great values in dividend-paying multinational corporations. CNBC.com's article included our views along with other money managers that are saying the same thing. Here is the link to the article: CNBC.com.
The quote used in the article was taken from a July 29 blog written by Randy Alsman, one of our senior portfolio strategists. Here is a link to Randy's full blog: Rising Dividend Investing.
We are happy that CNBC picked up our story-line. We believe the evidence is conclusive that global companies have a flexibility and financial power that is being completely ignored in today's stock market. We are particularly pleased that it is CNBC that is digging into the great story of multinational dividend payers. CNBC and its multiple media brands have a reputation of being aimed at traders and speculators, spending little time and attention on long-term value investing. In that regard, we tip our hats to CNBC.com. They took the time to talk with some veterans in the business who have been through crises before and believe that the current level of fear in the market cannot last.
One day the panic will subside, and when it does we believe the first place investors and even traders and speculators will go is to the financially strong, multinational companies for exactly the reasons that Randy detailed in his blog.
Yet, as we write this edition of our blog, traders and speculators are abandoning stocks of all stripes and rushing into US government bonds, driving bond prices to unbelievable heights and bonds yields to depths not seen since the 1950s. Is there a bubble under Treasury bond prices? -- you bet!
When considering that our government is borrowing 40 cents of every dollar it spends, and is so politically stalemated that the only thing legislators can agree on is TGIF (but only if G stands for goodness), the confidence speculators are bestowing on US Treasury bonds is nothing short of amazing.
Multinational corporations possess qualities that are not being fully appreciated or valued in today's market. That old saying about cream rising to the top is very applicable today in our judgment.
Greece is burning. Indeed there are signs of smoke in many countries in Europe, but the earth will still be spinning when this most recent "debt spiral" winds down. For reasons included in the long list of attributes that Randy detailed in his blog, the safest bet we know of is to stick with with what we know and what we know is good. That is multinational corporations that pay a generous dividend.
Thanks again to CNBC.com. To our knowledge this is the first time they have quoted us. We are honored that they included us in their story of the merits of dividend-paying companies.
We own many multinational companies that pay a generous dividend.
3 comments:
Congratulation on the media attention. Your work as a group deserves the attention.
My question is why large multi-national corporations with dividends? Why not dividend paying corporations that get the preponderance of revenue from within the U.S.? My reasoning is this. Let's say to be generous that Europe falls into a long term malaise... Other than us, who else is impacted by that? China is the largest exporter to Euro-land. Let's say the rest of the world slows. Cost of goods imported to us go down. We are a consuming nation. We benefit. Internally.
Who among our corporations are most at risk? Wouldn't it be those exposed to the rest of the world? If there is a higher risk area to invest in, global large cap seems to be it. My preference would be Mid and Small cap companies that get most of the revenue from within the U.S.
Indy,
Go to see your voice. Great question. The reason is simple. We believe the global economy will grow faster than either Europe or the US. This year global economy will grow about 3% v. 1 handles for US and Europe. There obviously opportunities in small and mid caps and they have been hit pretty hard. We look at smaller companies and own some that are predominantly domestic, but we still believe investing big US companies that do a preponderance of their business outside the US is the best strategy.
Now that the market appears trying to turn, it will be interesting to see who can break away from the pack.
thanks for your comment. Hope all is well with you.
I would like to add to Greg's statement at the expense of being presumptuous.
Until we get an administration and Congress that is friendly to business in this country then the best bet is the multinationals.
China supports their businesses and supports exportation even if they do fiddle with the currency.
The US is currently anti-business and businesses will continue to look for friendlier shores.
So invest where the businesses are instead of the using the ego-centric approach to investing.
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