Watch any company with 3% dividend: Harris Financial Groups Cox

Jamie Cox, Harris Financial Group managing partner, joins ‘Power Lunch’ to discuss his stable dividend plays, rather than the popular tech names and his top picks. He also discusses how the debt ceiling talks could weigh on the market. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

We were just talking about some of the high flyers in tech but our next guest says he’s focusing on more of the stable dividend plays here to share his best ideas is jamie cox he’s managing partner of the harris financial group all right jamie so let’s turn from the chips uh to some i don’t want to call him old tech but who do you like here and why okay so i this

Is all about debit growth kelly uh any any company that has a dividend over three percent we should be paying attention to in particular those that that companies are that money is going to be flowing into as interest rates start to rise novartis is a good example exxon mobil as an example verizon and these are particular companies that you can own for a long time

And you can also have you know you you’re going to see these particular companies gather money as we move into the the latter part of the year we should emphasize that what since you’re looking at dividends yes there are some tech names in the mix that you reference but there’s also an exxon you know there’s a six percent dividend yield there are you afraid uh

You know of losing principle or or no i mean it is not principle but you know what i’m saying how do you think the stock performs could it continue to run up uh with oil prices but are you concerned about what lies on the other side of that well you know companies like exxon protect protect their dividend at all costs so i’m not worried about the dividend but i

I think what investors need to be paying attention to is the cash flow of these companies the growth of the companies oil prices are probably going to stay high particularly if we have inflation so i think that particular name is safe for a while jamie it’s it’s dom here one of the things i think about when i think of dividends is the income investor when i say

Income it means money coming in and money that will ultimately get taxed at some point how closely as as a financial advisor as an investor are you watching the developments out of washington dc with regard to what could be future tax policy for things like capital gains and dividend income what exactly does that then do to the calculus for investing in dividend

Type payers well there’s no shortage of bad tax policy being contemplated in dc right now that’s for sure um but on the on for most people lower income people or even average income people most of the tax changes you know that are being proposed are not going to impact them and in fact i think that most people are going to prioritize dividends in the future as

Opposed to capital gains because you’re going to need current income uh and and you’re not going to get it in fixed income instruments at least for a while all right so final comment jamie as we also are watching uh sort of the dc drama we were just having a conversation about powell’s tenure at the fed uh which macro influences do you think make you more or

Less enthralled with the dividend players here well i think the the debt ceiling is the is the elephant in the room if we can’t get some type of deal then it’s all bets are off for all equities for a little while so i think that’s where we need to focus but i i i think that there will be an 11th hour deal there will be a little bit more weakness in markets but

Ultimately they’ll get it right the wild card and one of the cards that hasn’t been played yet is whether or not the senate could might actually defer the filibuster on this on on this particular situa situation so i think we have to be watching very closely to see how the negotiations go because i feel like a senator like cinema or mansion can say hey republicans

If you’re not going to do the debt selling increase in regular order we’ll just delay the filibuster on this particular topic and i’m not sure whether it would happen but it’s certainly a card that could be played

Transcribed from video
Watch any company with 3% dividend: Harris Financial Group's Cox By CNBC Television