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Dividend Growth the New Focus, Pro Says


While the market hasn’t exactly experienced a “lost decade,” UBS Wealth Management investment strategist Mike Ryan said it’s time to change the way we approach investing.

“The way we invest in equities has to be more income-oriented and focusing on dividends going forward,” he said Thursday on “Fast Money.”

“The notion about a lost decade is not just about where you end it, but where you begin it,” Ryan said, adding that the past decade saw extreme valuations and historically low dividend payouts.

What’s important now is how investors generate returns, Ryan said, adding that more companies were not just focused on paying dividends but increasing them over time.

Ryan emphasized growth over value, generating income and looking for distressed opportunities.

Ryan said it was important to recognize this is marathon, not a sprint.

“I think it’s about differentiating between companies that can do well on a short-term earnings basis, or companies that can pay the absolute highest dividend, versus companies with strong balance sheets, good growth prospects and can generate an increase in dividend over time,” he said.

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Trader disclosure: On Jan. 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long CSCO; Terranova is long AXP; Terranova is long NFLX; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long MUB; Terranova is long SU; Terranova is long EMC; Terranova is long SBUX; Terranova is long DECK; Terranova is long CSX; Terranova is long SJM; Terranova is long XOM; Terranova is long JNPR; Terranova is long PNC Feb. $60 calls; Terranova is long WFC Feb. $29 callsAdami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns INTC; Adami owns BTU; Adami owns NUE; Najarian owns AAPL; Najarian owns BAC; Najarian owns GS; Najarian owns BCS; Najarian owns TXT; Najarian owns URBN; Najarian owns INTC; Najarian owns CMC; Najarian owns FSLR; Najarian owns WYNN; Najarian owns DHI; Najarian owns LEN; Najarian owns WLT;

For Rich Ilcziszyn
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For Russ Girling
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For Moshe Orenbuch
I, Moshe Orenbuch, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report

For Mike Ryan
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