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Industry Focus

Tech: Dividends and to DRIP or not to DRIP

Industry Focus

The Motley Fool

Interview, Money, Consumergoods, Business, Businessnews, Ceo, Technology, Investing, Stocks, Energy, Fool, Financial, Economy, Healthcare, News, Banking, Motley, Tech, Business News, Investments

4.6854 Ratings

🗓️ 11 November 2016

⏱️ 23 minutes

🧾️ Download transcript

Summary

With some post-election market uncertainty looming, we talk about a few dividend stocks we like and explain why it does (and doesn't) make sense to reinvest the dividends those companies pay out.

Transcript

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0:00.0

This episode of Industry Focus is brought to you by Rocket Mortgage by Quicken Loans.

0:04.0

Rocket Mortgage brings the mortgage process into the 21st century with a fast, easy, and completely online process.

0:10.0

Check out Rocket Mortgage Today at Quickicken Loans.com slash Fool.

0:14.0

Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day.

0:21.0

It's Friday, November 11th, shout out and thank you to all our veterans out there.

0:24.3

Today we're going to be talking about dividend investing in tech, name a company or two that we like,

0:28.7

and talk about whether to drip or not drip. I'm your host Dylan Lewis and I'm joined in the studio by

0:33.5

my fool premium analyst Jason Moser. Jason how's going? Hey all right how are you doing

0:38.0

all right. Excellent. So the background for the show I think earlier in the

0:42.1

week we'd seen that there was the

0:44.3

potential for some volatility in the market just a smidge and naturally when that's

0:51.1

something that people are worried about I think that people tend to turn

0:54.7

to dividend stocks.

0:55.7

Or they tend to look at some of these more stable and kind of stalwart companies.

1:00.9

And I felt like we haven't done one of these shows in a while. It made sense to kind of dust off the book and see what's going on.

1:07.0

Absolutely.

1:08.0

So first I'm going to talk about a company that I've liked for a very long time. I've been a Verizon Bowl for quite a while now and

1:17.0

I'll say that this is a company that is not really going to wow you with share price appreciation.

1:22.3

They've been within a pretty tight band over the last

1:24.1

couple years and you look at their PE, I mean they're at like a multiple like 14 right now.

1:28.9

It kind of reinforces the idea that they are not a high-growth company.

1:33.0

But investors have gotten a nice 4 to 5 percent yield via dividends,

...

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