In the first Big Picture topic this week, The Risk to Dividends – Know What You’re Buying, Jim reiterates his belief in a dividend-paying stock strategy. However, unlike the last five years, there are greater risks to certain dividend paying stocks, given a looming recession on the horizon. Jim emphasizes the importance of doing your homework, knowing what you own, and what you are buying. There is much more to the dividend story than just high yield. They also discuss how to analyze a stock to determine if the dividend is secure. The next Big Picture topic is Extreme Outcomes. This is a presidential election year, where politicians are all promising better times and lots of free stuff to voters if you elect them. But there is a lot at stake in this election, and it has major implications for financial markets both here and abroad. With the passing of Justice Scalia, all three branches of government are up for grabs. Jim believes this will be one of the most pivotal elections in American history.
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