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Don't buy stocks because of high-yield. You need growth in the dividend, not high-yield. A high yield is usually indicative of bad organizational problems. The dividend on this company has gone down 46% in the last year alone. Down 5%-10% in the last 4 years. Brazil was a problem 5-10 years ago. Europe continues to be an issue because all these companies are marketing like crazy and giving big discounts. Also, they are highly indebted. Trading at around 4X debt to cash flow, where 2X is adequate. He would stay out of the telco sector completely, especially the European ones.

His long-term view on this is positive, having owned the stock since 1997. The economy is going to drive this company, so it depends on which way the economy goes. They were a little short on their earnings in the last quarter because they spent some money on locomotives. Somebody has to move the products regardless of what happens to NAFTA. This is the kind of stock you want to put in your portfolio.

If you are going to be in an emerging market like India, then you want to be in consumer products or financials, because they are going to get you to all the consumers that are out there. For him, it was between HDFC Bank and this company. HDFC had better metrics. You will be dealing with the volatility of being in India. Both stocks had huge run ups last year in the 30%-40% range. They are pausing right now because they have to see what is going to happen with all of economic changes the government has put through. The government is allowing banks to write off bad loans and to start fresh again. These 2 are probably the best capitalized of the banks, and therefore the least risky. You are going to have volatility of roughly 30%-40% a year and will have to live with it. (See Top Picks.)

This has the cell towers and fiber-optic networks that are going through all US cities. He is more attracted to the bonds than to the stocks, because it is a highly leveraged company. They are on the edge of investment grade, so a downturn could hurt. Demand for speed and 5G is coming and is going to be an opportunity. If you want to go into a company like this, the volatility is going to be very high, so you only want to go in with a half position, and manage it over time.

The long-term outlook is still very strong. The market is expensive and the stock price is expensive, so this is where you want to come in with a disciplined strategy of buying a half position, and let the market dictate when you allocate the next half.

Manufactures syringes and other medical devices. Just completed a big merger. The merger of 2 strong free cash flow growing companies has made them a powerhouse, and the stock has taken off after the announcement of the acquisition. Expectation is 10% free cash flow growth, and as a result, 10% dividend growth over time.

This owns other publicly listed companies, so it is going to go up and down depending on what the companies they own do. Has had a great winning streak until last year when it took a big drop in the summer. Dividends are lumpy because it is based on a percentage of their profitability. It fell from about €7 to €6. He’s not a big fan. Would rather own the individual stocks themselves.

He is trying to find companies that are trading at fairly low multiples. This is trading at roughly 13X earnings out to 2020. If Mr. Trump puts through an infrastructure bill, this company is in a situation where they can take advantage of it. Through acquisitions they’ve upped their environmental capabilities as well as US exposure. You get a dividend growth of roughly 10% a year. Dividend yield of 1.43%. (Analysts' price target is $39.45.)

He owns 3 banks. Toronto Dominion (TD-T) for North America, Svenska for Europe, and HDFC (HDB-N) for India. This avoids correlation risk. Svenska, is a Swedish bank and a little different in that head office doesn't make the decisions, the branch manager does. They have a steeple effect, where if you climb the steeple, everything you can see in 360° is your market. Very conservatively run. The dividend has been rising at roughly 10%-15%. Trading roughly 13.5X earnings. Dividend yield of 4.32%. (Analysts' price target is 117.73 SEK.)

US Treasury TIPs. If we get any kind of inflation in the US, with infrastructure spending or the drop in the US$ relative to other global currencies, the US with then start to import inflation, and this is where these bonds come from. As people get into retirement, bonds don't protect you from inflation, but these do. They pay 2.18% plus the inflation rate every year.