As part of the Next Invest conference, Covestor’s Mike Tarsala spoke with Pat O’Hare at Briefing.com about the outlook for the U.S. economy, stock market and dividend-paying stocks.
O’Hare believes the economic climate will remain challenging in the months ahead, thanks to the sequestration in the U.S., noting that fiscal austerity resulted in higher unemployment in Europe. At the same time, companies aren’t going to invest without more clarity on budget matters and better demand, he says.
In this environment, O’Hare advises investors to practice dollar-cost averaging and focus on dividend-paying stocks. Stick with players like AT&T (T), McDonald’s (MCD) and Clorox (CLX) that have a strong track record on dividend payouts, he says. ”They will provide an income generating source that will be there over time,” according to O’Hare.
The investments discussed are held in client accounts as of February 28, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.