Income Investing: Staples & IT

How Dividend Investing May Halt the Speculative Quest for Quick Gains

Introduction:

This paper builds on our recent work highlighting that many of the market’s highest quality firms are trading at discounts to the broad market.  The exhibits that follow provide potent evidence that today is one of the most compelling times in history to adopt a simple dividend investing strategy in Consumer Staples. Specifically:

  • Tech Investing: The recent mania for loss-making tech firms and impossibly priced “Nifty Fifty” stocks has inhaled capital and left many of the most proven and profitable firms at historic discounts
  • Staples – An Income Investing Strategy:  The yield famine in markets today combined with the historical power of investing in Consumer Staples creates a compelling opportunity to buy the market’s best assets
  • Trading Places: Why today is a terrific time to start selling out of overpriced tech and buying into Staples

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Disclaimer

The information, data, analyses and opinions presented herein (a) do not constitute investment advice, (b) are provided solely for informational purposes and therefore are not, individually or collectively, an offer to buy or sell a security, (c) are not warranted to be correct, complete or accurate, and (d) are subject to change without notice. Kailash Capital, LLC and its affiliates (collectively, “Kailash Capital”) shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information herein may not be reproduced or retransmitted in any manner without the prior written consent of Kailash Capital. 

Kailash Capital, in preparing the information, data, analyses and opinions presented herein, has obtained data, statistics and information from sources it believes to be reliable. Kailash Capital, however, does not perform an audit or seeks independent verification of any of the data, statistics, and information it receives. 

Kailash Capital and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.