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Motley Fool Money

Dividends = Discipline

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 17 August 2024

⏱️ 25 minutes

🧾️ Download transcript

Summary

Right now, the S&P 500 is paying a paltry 1.3% dividend yield. The only time it’s been lower than that was during the dot-com boom. Matt Argesinger and Anthony Schiavone lead The Motley Fool’s Dividend Investor portfolio. They joined Mary Long for a conversation about: - Why companies pay dividends. - How to tell if a company’s payout is sustainable. - Dividend payers including Pool Corp, Nike, and Starbucks Companies/tickers mentioned: HSY, FAST, POOL, NKE, SPG, SBUX, CMG, SPG, SCHD Host: Mary Long Guests: Matt Argersinger, Anthony Schiavone Producer: Ricky Mulvey Engineer: Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

I would just say I think your aunt and I will agree on this.

0:03.3

Many more companies should be paying a dividend.

0:05.2

There are far more benefits even a small mid-cap company that might be in still the third

0:09.7

or fourth inning of its evolution.

0:11.2

A dividend can instill a lot of discipline on management.

0:14.1

If you think about it, if you have to pay out, say, 20 or 30 percent of your earnings every

0:18.2

year into, for your dividend, if you've promised that to shareholders, it's going to have an effect

0:22.3

on how you allocate capital.

0:26.9

I'm Mary Long and that's Matt Argersinger. He's a regular on Molly Full Money.

0:30.8

In his day job, Matt runs the Fool's dividend investor portfolio,

0:34.3

along with Anthony Chivone.

0:35.7

dividend investor is available to members of Epic and are Advanced Investing Services.

0:40.7

Mattier and Ant joined me to check in on the dividend payers and why they've had a rough few years

0:45.4

compared to the broader market, how dividends affect decisions in the C-suite, and if Nike can write

0:51.4

another comeback story.

0:52.8

So I want to start by checking in on the status of dividend

1:03.0

E. T. F. S. M. M. P. 500. year-to-date and also over the past five years.

1:08.8

So with that Intel up front, what's the long-term case for looking at dividend payers?

1:14.0

Well, thanks Mary, thanks for having us.

1:16.0

Yes, it's been a challenging five years for dividends.

1:20.0

I would say really, especially in the immediate aftermath of the pandemic, you had this real strong

1:26.3

rotation in the market to large cap, but especially large cap tech companies.

...

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