GAMCO's portfolio manager Barbara Marcin was on CNBC to discuss her views on dividend stocks.
-- Dividend paying stocks have room for growth. "A lot of companies" are still selling at low multiples.
-- Dividend paying stocks are not crowded with everyone piling to earn some income while they wait for capital growth.
-- Lot of dividend paying companies are trading at low valuations, are well positioned to grow earnings, have solid balance sheets and still providing 3% to 4% yields.
-- If dividend paying stocks would have been crowded some value would have already gone, which means their valuations would have moved up and dividend yields would have moved down.
-- Technology and healthcare sectors are two of her favorite sectors for dividend plays and overall better total return.
-- In technology, she believes that the upcoming fiscal cliff and resultant increase in the dividend taxes may push some of the cash-rich technology companies to distribute some of the cash in a one-time cash dividend as has been recently done by AOL.
Here is the video. Barbara comes in after one minute:
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros