Top ranked financial advisor Robert A. Kincade, President and Owner of Stonebridge Capital Advisors, picks Apple (NASDAQ:AAPL). as a dividend play:
“They used to be referred to as only a growth company and now a large-cap growth company, obviously, jumbo cap. But with the cash that they’re accumulating, we see them as a good dividend play from the standpoint of them increasing their dividend. The yield on that dividend right now is around 1%, but with the cash they have, our belief is that they will continue to increase that dividend. So if you consider this a long-term hold, you will see your yield on cost increase significantly over the years.”
In his exclusive interview with the Wall Street Transcript, Mr. Kincade sees multiple opportunities in today’s markets, most notably with dividend growth stocks: “Oftentimes, a well-constructed portfolio with good-quality common stocks or preferred stocks can provide a much higher income yield than what they might get in traditional fixed income. It doesn’t mean they shouldn’t have some bonds in their portfolio, but where they can pick up additional yield with an opportunity for moderate growth, it can make a lot of sense for the client. And so we design a fair amount of dividend-income equity portfolios that will give them a good dividend yield…”
Another favorite in the portfolio is “large midcap is Hexcel (NYSE:HXL). It is a materials company and, interestingly enough, developed back in the late 1960s, early 1970s with a very, very light ski through a composite that they developed that was stronger than metal, stronger than wood, yet very lightweight. And so they developed a ski for years, and it was a pretty popular ski.
I think eventually they developed this composite so that it is very, very lightweight; very, very strong; and being utilized in a good number of the planes that we see flying today, particularly the jets. Boeing (NYSE:BA) is one of their larger clients, but they’re expanding the use of that composite in construction and other areas. Their technology has continued to improve and finds newer places where it can be utilized.”
To see more of Robert Kincade’s stock picks, read the entire interview at the Wall Street Transcript.
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