Dividends and Old School Investing

Chris dives into the timeless strategy of dividend investing, explaining why these stocks form the backbone of a solid portfolio. Forget the "hot trends"—true wealth comes from compounding and companies that pay you to own them. Markowski shares his rules of the road for smart investing and why dividends never go out of style, even when the market says otherwise. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris.

Speaker 2 (00:14):
Markowski Dividends and Old School Investing. I got a kick
out of this. My wife told me there was a
sale that she had to go to. She needed to
pair genes or whatever it may be. And then if

(00:35):
I look at my closet and there is a long
rack of genes on my wife's side, I'm like, what
in God's creation does she need all of these genes for? Well,
this is the new style. They've got to look this
way anyway, whatever, neither here, they're there. I picked my battles,

(00:56):
you know what I'm saying, Go ahead anyway, some things,
some things, And this is kind of how yeah, the
clingby I buy stuff that doesn't go out of style.
I buy things that do not go out of style.
My kids like to make fun of me. And I
got this weird quirk where I'll be wearing something and

(01:18):
I'll remember I got this at a Barney sample sale
back in nineteen ninety six, and fine, it's you know,
books good anyway, neither here nor there? Okay, what am
I getting at? Old school? Old school. I've talked about this.
I've talked about the importance somebody's like concerned about the
latest bestseller novel. Make sure make sure you take a
look at pieces of literature that have stood the test

(01:44):
of time. I've talked about that. In terms of restaurants.
If I go to a new city, If I go
to a new city and I don't know my way around,
and the concierge say, oh, we got this great new restaurant,
I'm like, how about telling me the great old restaurant
that's been there for a long time. Anyway, there's a
right way and there's a wrong way of doing things.

(02:06):
And one of the things that the financial world likes
to do is they like to tell you, oh, this
is hot, and this is in and this is out.
And it was funny. I saw Wall Street Journal article
talking about how dividends stocks are prime for a comeback
in twenty twenty five, and I rolled my eyes. Dividends

(02:28):
never never, ever ever go out of style. They never
go out of style, their foundational pieces in one's portfolio.
You might not realize this okay, But the bulk, the

(02:50):
bulk of market returns throughout history hasn't been due to
capital appreciation. It's been to dividends and communing those dividends
and their yields over time. Again, what is rule number one? Markowski?
Rule number one, Rules of the road. Compounding is the

(03:14):
royal road to riches. And if you can find a
great company, a great company that's got positive cash flow,
that continues to pay a dividend, oftentimes raising a dividend
on a regular basis, what in God's creation do you
care if that company's going out of style? You got

(03:38):
to you gotta sell it and move it into treasuries
because you think you know what interest rates are gonna do. No, no, no,
you think that's what Berkshire, Anything's Buffett and Munger did.
It's what we do. No, that's a fool's erin you

(03:59):
look for companies again, stable companies that pay diffidends. And
also it's a great place to go ahead and wear
house profits. So when you have a run up and
some of the you know, the the you know whatever
it may be, the stock dejure or the industry, to
sure that's doing really good, you take profits off the table.

(04:23):
And if those quote end quote dividend stocks are not hot,
not these things really haven't done much this year. Yeah,
but they've paid a consistent dividend, haven't they. You buy more.
There's nothing wrong with getting paid, nothing wrong with getting
paid to own companies and sharing in the profits of

(04:47):
that company. Yeah. It might be old school. Okay, yeah, okay, Markowski,
but it works every single time, every single time. Again,
I'm deja vu here. This is the same thing. You
can go back. You can go to my website and

(05:09):
look at my columns that I wrote back during the
whole dot com run up, after the dot com runer,
telling people, hey, listen, damn, you got to diversify. I
got to take some assets off the table. You need
to some of these divid dend companies that that you know,
high quality companies are paying dividends. Yeah, but they don't

(05:29):
have a they don't have a dot com thing going
right now. That trust me, they're fine. You know, these
are stalwarts. People have to eat. They have to do
a myriad of different things. These are solid companies. Yeah,
but but but no, no, again, there's the right way
and there's the wrong way. Stop trying to get rich
quick and build a solid portfolio. Solid portfolio built on

(05:53):
companies that pay you to own them. Watchdog on Wall Street,
dot com