How Dividend-Paying Stocks Provide Protection in a Declining Market

This week, the Federal Reserve raised its key short-term interest rate for the ninth consecutive time, bringing it to the highest level since September 2007. While Fed Chair Jerome Powell acknowledged the dilemma that the Fed officials faced, the banking system's turmoil has been a cause of concern following the recent bank failures. However, Powell assured that the banking system is sound and resilient, and the Federal Reserve is prepared to use all tools as needed to keep it safe and sound. In other news, dividend-paying stocks are gaining new respect among investors, and they are proving to be a protective asset in times of market volatility. ClearBridge Investments' Dividend Strategy Fund has been named one of "The Best Dividend Funds" for 2023 by Morningstar. Michael Clarfeld, co-portfolio manager of the fund, is with us to explain why high-quality companies with histories of growing their dividends are particularly valuable now.
00:00 Hello
00:32 Introduction
02:42 Interview with Michael Clarfeld
22:35 One Investment
24:25 Action Point
#FederalReserve #inflation #jobmarket #bankingsector #economy #savings #credit #dividends #investors #DividendStrategy #Morningstar
WEALTHTRACK Episode 1939 broadcast on March 24, 2023
More info about the stocks mentioned and the Dividend Compounders list:
wealthtrack.com/the-many-bene...

[@seanharrington4768]

What a fantastic interview and guest on Wealth Track. Mike had the heart of a teacher with his divided stock recommendations, thank you !!

[@joannemeeks745]

Excellent interview, and I can't wait for the next interview on building a retirement portfolio.

[@davidfolts5893]

Smart financial commentary!

[@benedit71]

Great interview, quite a few investing nuggets in one segment!

[@AnnaMarieBooth.Educator]

Useful information! Thanks!

[@tsabo8227]

Good interview as usual, with many questions i had, answered. Thanks Consuelo. Really like dividend paying stocks in this enviornment

[@rr2b]

Fantastic guest! Great education ❤

[@antonomaseapophasis5142]

I believe 90% of discussions on this channel are about devising strategies for improving returns. I would never dare to say that this is easy, but I would say there are relatively simple methods of participating in the long-run historical rise in markets. Of course that is no guarantee of the future. What I do find vexing is selling. Even if a 4% rule, or some other wheeze, is decided upon, you are left with the problem of actually selling, and I don’t see much explanation of the mechanics of planning. Does one use an inverted Dollar Cost Averaging? There is the same temptation to time the market on the sell side as there is on the buy side. Do you have any references on this? Will there be an episode devoted to this subject?

[@johnbirman5840]

Yah. Selling is even more problematic than buying, since it is immediate vs growing over time. Perhaps the comparison to farming is most appropriate: Planting; Cultivating; Harvesting and Seed gathering for next years planting; and Time and Weather conditions. One Harvests when ripe, and different crops mature at different times. In a diversified portfolio, crops that matured and are bearing fruit get picked, and crops that haven’t yet born fruit, are left to keep growing unless disease or stunted growth recommends pulling up and planting something else. Markets are cyclical. Winners one year, next year not so much. If you have a bumper crop in one asset - take profits in that. Farmers used to also let some fields lay fallow every 7 years for 1 year so as to rest. Plant, Feed, Harvest.

[@antonomaseapophasis5142]

@@johnbirman5840 I like your farming analogy, but I find that the criteria for judging ripeness are more mysterious with investments than with fruit. There are investments which when harvested have reached the end of growth, or may continue to grow after being pruned, or have just begun to fructify. I am trying to develop a regular analysis, including tax considerations, which would improve my judgment. As for laying fallow, my experience is that some investments can lay fallow for 7 years and go on to be completely dormant. Although, I have had the experience with PLUG of a stock which went into suspended animation for twenty years, awoke violently, then went back to sleep.

[@tastypymp1287]

You guys need to understand. It's not that financial assets increase in value over time. It's that your currency has been, and continues to be, steadily losing value.

[@chamindasilva3191]

Great interview.

[@chessdad182]

Good show.

[@cjdch6604]

Err - i went through his Portfolio - firstly performance been bad. Also Median Div Y is 2.5% which after their 0.85% expense ratio is 1.65%!... not exactly a dividend fund with S-T rates 5%.

[@johnbirman5840]

Ouch!

[@tastypymp1287]

Bad how?

[@michaelswami]

Consuelo is the 🐐 of financial interviewers. Thanks so much for this great guest

[@tastypymp1287]

Cringe.

[@michaelswami]

@@tastypymp1287 uncalled for

[@tastypymp1287]

@@michaelswami Nope. Totally called for.

[@michaelswami]

@@tastypymp1287 perhaps you could explain, because it is a compliment.

[@tastypymp1287]

@@michaelswami Self explanatory.

[@marcb934]

In investing your get what you don‘t pay for. However nice view!

[@antonomaseapophasis5142]

I bought some, if not most, of the stocks on the list Hersh Cohen offered in 2012?. They coincided with holdings in my fund and ETF allocations, but I believe their returns were more efficient in that I have simply held them. Thank you.

[@tastypymp1287]

You bought stocks correlated to what you already own? Cardinal sin!!

[@CBBC435]

Recession?

[@HermannTheGreat]

SCHD beats it in every way.

[@lindalukosal8960]

thanks for this comment, just looked up on yahoo finance

[@tastypymp1287]

Not really.

[@selma5885]

Is this a load fund?

[@paulsshortshorts5535]

SCHD

[@jeffmilligan7030]

Good interview. He speaks far too fast. If he gave this interview to promote the fund he runs, and intends to give more, he should get a speech coach to train him to stop speaking at a breakneck rate that is hard to follow.

[@tastypymp1287]

He talks too fast. Nervous?

[@Javalipapere]

Goog principles but not impressed w his stock picks.

[@brianhollenbeck8633]

Diversity is wisdom. 😇👑🌏🌍🌎💚@undwallace