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GAMCO's Barbara Marcin: Dividend Stocks Are Still Attractive

September 05, 2012 | About:
Dheeraj Grover

Dheeraj Grover

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:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.4/5 (5 votes)


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