The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith and senior technology analyst Eric Bleeker discuss topics around the investing world.
As part of our ongoing series, Eric and Austin discuss a promising dividend payer to invest in and one to back away from. Eric takes one look at Nokia and says "Run away!" Despite the company's fat dividend, he thinks the writing is on the wall, citing its negative operating margins. History has shown us that this trend is nearly impossible to reverse, and the vicious cycle in the smartphone industry is expected to snuff any turnaround Nokia is planning.
Austin likes Staples. The company is looking very cheap, pays a great dividend, and is slowly grabbing more market share from rivals Office Depot and Office Max. Not only that, but its shift toward more store branded products should push its margins up over time.