‘Blue-Chip Dividend Growers’ Remain a ‘Prudent Investment’
Jim Lowell, chief investment officer at Adviser Investments joined CNBC’s “Squawk Box” to discuss Tim Cook’s January 2 letter to shareholders. Apple’s stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. fell nearly 8% after the company announced it had lowered fiscal 2019 first-quarter revenue as a result of, among other things, a “dramatic deceleration of sales” in emerging markets. Meanwhile, Jim emphasizes that “battleship-balance-sheet blue-chip dividendA cash payment to investors who own stock in the company. growers” continue to be a prudent investment that deliver “reasonable riskThe probability that an investment will decline in value in the short term, along with the magnitude of that decline. Stocks are often considered riskier than bonds because they have a higher probability of losing money, and they tend to lose more than bonds when they do decline. and return profiles relative to the broad market.” For long-term investors with a well-diversified portfolio, he notes that markets like the one we are currently experiencing can offer wealth-building opportunities.