Wednesday, October 05, 2011

Greece is Burning But Many Multinational Dividend-Paying Stocks Are Still Cool recently quoted excerpts from one of our blogs about the great values in dividend-paying multinational corporations.'s article included our views along with other money managers that are saying the same thing.  Here is the link to the article:

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  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  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.