Gary Goldberg, Tom Golisano discussed on Balance of Nature

Automatic TRANSCRIPT

We're back with them and I'm Gary Goldberg on money matters and I have the opportunity to talk with somebody of Tom Golisano's quality I love to share what I find interesting and when I can talk about entrepreneurship when I can talk about the opportunities that lie in front of you my listeners perhaps in the franchise area I think I'm doing a service not only do I manage money I also manage people's lives in many ways and I have a lot of experience in doing this so that's what money matters is about it's not just self promotional stuff it's informative and we have an array of wonderful guests that we've had for years and years and years the show's been on for three decades and then some and we've had people like Jeff Bezos on we've had people like Richard Branson on we have had people who are leaders in corporate America on got a son who is one of those individuals one of the people I really missed talking to which Jack Bogle the founder of vanguard who passed away about a year ago and I miss the opportunity of talking to legendary figures I'm gonna share story with you when Jack Bogle and I spoke about two years ago I said Jack I would love to come down and meet you I was looking for a photo op and I was very honest with them I said I put you on the mount Rushmore of financial people along with the likes of Warren Buffett and he said that would be great Gary I said well I'll come down in the city we can have lunch she said you're gonna have to come a lot further than the city I live in Pennsylvania and I was going to go to Pennsylvania just to have lunch with Jack Bogle the founder of vanguard and I was going to bring Peter Dale ahead of our trading department to join me for this photo op but unfortunately when we set it up Jack was not able to meet with me because of failing health and ultimately our year a so ago he passed don but he's the kind of person I love having come on this program now he was a real buy and hold investor and I'm mentioning Jack Bogle because he also loved dividends I love dividends and it's not as simple as just going out and buying a dividend yielding stock if you bite just on the dividend you are setting yourself up for failure you need a system that is going to allow you to discern or your adviser to discern in this is the kind of research I do what companies will outperform over a longer term while they pay you dividends if you're gonna fish in the dividend pond make sure you have enough time to wait for the fish to bite so you want to go with companies that will continue to pay the dividends will increase their dividends and I love dividend growers these are stocks that outperform as a group most other companies they have a history of increasing their dividends they do better overall and you want companies that increase their dividends because of companies have flat dividends they tend to perform on a very average basis you want to own shares in companies that are likely to continue hiking their dividends you also want to find a company or your adviser should find companies with a long history of investing smartly in their businesses so when you look at a company that has a high return on their own capital that's with a Homer comes in that's the kind of stock you light also do not go with the highest dividend paying stocks go with moderate dividend yields I have found excessively high dividend yields often come with return of your own principle they come because the stock has come down and it's a sign of trouble ahead so in order to identify promising companies you want to find companies and you can find them now in the utility area and in the oil area the quality ones and if the stock comes down and if they have a high return on their capital you can buy them because their dividends are typically secure what I look for so look for strong balance sheets I go for companies that can pay these dividends can increase their dividends yes it takes homework that's what you want and then I find that spreading your risk over too many dividend stocks is unnecessary hold good quality dividend stocks concentrate your money in a few very good ones and then put them in different categories of industries again for industries that pay high dividends utilities oil health care they each have their own risks but that's okay when you're earning more than you are in the bank you're taking on some level of risk also I suggest hold for the long term portfolio turnover in these utility stocks is not necessary just make sure that they continue to raise their dividends if they stop raising the dividend stock will come down that's usually a sign this cell you're not gonna get out at the top but you won't get out at the bottom in my opinion so a lot of homework when you're looking for income it's not like just buying something because it's paying a high dividend when I see dividend yields of eight nine and ten percent I scratch my head and I say oh what's wrong with this company this is something that I have to look at before I invest in it for myself for for clients and you should do the same and so should your adviser and anytime you want to explore with me your portfolio in relation to your income what is it generating for you how stable of these companies you can call me again I'm gonna give you the number is eight eight eight four four one two zero three three eight eight eight four four one two zero three three you're listening to Gary Goldberg on money matters you're listening to money matters with Gary Goldberg income matters and it can come from many sources we had money matters like dividend paying stocks we prefer high quality dividend paying stocks not for everything in your investment portfolio and not all of the time still if you're seeking income after retirement look for companies with a history of raising their dividends on a regular basis call me Gary Goldberg.

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