The roller coaster stock market makes this an especially tantalizing time to talk with stock market maven David Bahnsen, founder, managing director, and chief investment officer of The Bahnsen Group. He’s also author of the new book The Case for Dividend Growth: Investing in a Post-Crisis World.
He hunts for companies that have a record of growing dividends. Amazingly, a portfolio stuffed with stocks whose dividends grow year after year not only throws off a growing amount of cash but also experiences an impressive rise in principal. Companies that can consistently raise payouts to shareholders are ones whose bottom lines are expanding as well—which means their stock prices will appreciate also. Bahnsen emphasizes that while markets will fluctuate, investors who stick to the dividend growth model will do very well over time.
Another seemingly counter-intuitive insight—market volatility can be an investor’s friend. Let others act like scared rabbits every time the market takes a dip: you can profit from their emotions.
So take a listen to our conversation—and have those you love or want to help do the same.