Investing is all about getting your money to work for you, and seemingly one of the easiest ways to do that is through dividends.
You buy shares of a stalwart business, relax, and watch the checks come in every few months.
But there are some big-time mistakes investors make in chasing dividend payments, and some overlooked metrics that are crucial to evaluating which businesses can actually produce decades of income for investors.
In this video from our YouTube channel, we break down how dividends work, whether investors should be chasing high yield dividend stocks, and how to find the best dividend stocks to help lock in a lifetime of payments.
Plus, we name two companies that we think are some of the best dividend stocks to buy for 2019 and take questions from the audience watching live!
A full transcript of the conversation will be posted after the broadcast has finished.
Chris Hill: Hey, everyone! Thanks for joining us! I'm Chris Hill. We're coming to you from Fool Global Headquarters in Alexandria, Virginia. I'm joined by senior analysts Jason Moser and Andy Cross. Thanks for being here, guys!
Andy Cross: Hey, Chris!
Hill: We're going to be talking about dividend stocks. We're going to be taking your questions about all kinds of stocks. Go ahead and get those ready. Andy Cross, let me start with you. Dividend stocks, a great way to invest. For those unfamiliar, what are the basics? What is a dividend? Why do people like these stocks?
Cross: Very quickly and simply, it's essentially a payment that companies make to their common shareholders, so, your basic shareholders out there. In the U.S., they usually pay it on a quarterly basis. Over in Europe, sometimes they do on a half. There's also special dividends. Essentially, they pay out maybe once a year. It's a payment of earnings that companies make to their shareholders as a recognition that the shareholders have invested in the company and they deserve a payout.
Hill: Jason, when we're looking to invest in any company, there are certain metrics that we're looking at. If you're looking at a retail company, same-store sales is a basic metric you want to get. Same thing for dividend stocks. What are a couple of the metrics we should be looking at?
Jason Moser: There are some direct metrics that we really want to pay attention to. One that comes to mind is the payout ratio. This is something that tells you how much the company is making, how profitable it is versus the amount they're forking over in dividends each quarter. The payout ratio tells us if they can afford that dividend. You like to see that number on the lower side. If you start seeing that thing creep up towards 60, 70, 80 -- boy, if you see it getting over 100, you really need to start asking some questions.
Then, look at things like the dividend yield. This is a recognition of the amount of money the company is paying out in dividends per year compared to its stock price, as a percentage of its stock price. Typically, you're going to see something in that 1% to 3% range. Over time, you like to see that grow. You don't like to see companies with these really high dividend yields, 6% to 8%. There are certain cases where that's OK, whether it's an LP or a REIT or something like that; but oftentimes, that can be a sign that perhaps a company won't be able to sustainably afford that dividend.
Indirectly, pay attention to the fundamentals of the business itself. Make sure that top line revenue is growing. Make sure the company is making plenty of free cash flow. Ultimately, that's what dividends are. I tell my kids, dividends are a nice little thank-you. They're a thank you card from the company. They say, "Thank you for owning our stock every quarter." But that's cash out the door, that's not a non-cash charge, so make sure the company is making enough cash to be able to support it.
Cross: I'll just add dividend growth. We like to see companies -- not every company, but a lot of these great companies that have been successful dividend payers over the years, and great stocks, have been able to grow that dividend. Tend to be a lower payout ratio so they can add that dividend. So, they have earnings growth and they continue to inch up the dividend over time. It's a nice metric to watch. The companies that have been really successful in the market over the last 20, 30, 50 years have been dividend payers that have been able to grow that dividend.
Hill: It's interesting. If you think about maybe the last decade or so, it's almost like dividends have had a stigma that has been removed. There was a long stretch time with a company like Apple where the big question around Apple was, "Boy, they're building up their cash balance. Are they going to start paying a dividend?" And there were people saying, "Well, no. We don't want them to pay a dividend, then they won't be cool anymore." People were literally saying, "If you start paying a dividend, all of a sudden you qualify for Social Security. You're an old company. You're no longer cool." That's gone now. It seems like more and more growth companies are paying a dividend.
Cross: I think investors started focusing on how management teams and boards of directors are allocating capital. Some of these companies have gotten so big and so profitable -- the billions of dollars that Apple generates each quarter in profits, they literally cannot invest that fast enough to be able to put it to good use inside the business. So, the way they can deliver returns for the shareholders is to pay a dividend and buy back stock. Dividends send a real signal to the market that these companies have stable cash flows. If you cut a dividend, Chris, maybe we'll talk a little bit about that -- it's a bad sign for shareholders. They don't like that. So, once you start paying a dividend, you have to keep paying it. It's a sign of stability. Some of the companies that have done so well in the marketplace over the years have now started recognizing, "Hey, a dividend's a good return of capital for shareholders."
Moser: I'm glad to see that stigma disappearing. Let's face it, we're going to talk about cool? Money's cool. Everybody likes money.
Cross: Money back in my pocket!
Moser: Exactly! Cash in the pocket, you can do a lot with it. I pulled some interesting data from Robert Brokamp, our Certified Financial Planner here in Rule Your Retirement. It's very interesting. The math doesn't lie here. Looking over this century -- not the last 100 years, this century that we're in right now -- you look at the performance of the S&P 500, the index has returned up to this point about 105% on a price only basis. But when you incorporate dividends into that, look at the index's total return, all of a sudden, it jumps up to 200%. You can see immediately that dividends make a really big difference, particularly the longer your holding period.
Cross: Yeah. What's interesting is, if you look historically, the dividend return to the overall S&P 500, the general market, it's been about 40%. Recently, it's pulled back a little bit because a lot of companies -- although some of the growth companies have been paying dividends, as we get a lot of these exciting super-growth companies, a lot of these cloud-based, SaaS-based technology companies, they tend not to pay a dividend, and there was a lot of money going into there. So, the percentage of companies paying a dividend has gone down. As the returns of stocks continue to do very well, dividends overall haven't contributed as much to that return picture.
Moser: We talk about those SaaS companies, those growth companies, and we go back to that payout ratio, like we were talking about a minute ago -- if you look at the payout ratio for a lot of those companies, it's going to come up in N/A because they don't make any net income to begin with. If you don't make any net income, you can't have a payout ratio. That's where that works. Ultimately, you like to see it dividend, but you want to make sure it's coming from a company that's making money to begin with.
Hill: I know you guys have a couple of dividend stocks you want to spotlight for folks. I do want to get to a couple of the pitfalls. But real quick, Andy, you talked about companies that pay dividends year after year, increasing. We have to mention dividend aristocrats, a phrase that some viewers might be familiar with. These are companies, you talk about track records, they've increased their dividend every year for 25 straight years or more.
Cross: Yeah. There are just shy of 60 companies currently on the list. Companies like Cintas, Pepsi, J&J, Medtronic, Target, Sherwin-Williams. These are companies that have had the cash and the profit picture and the growth picture to be able to pay a dividend and increase that dividend for the last 25 years. Here's what's really interesting about this. Jason touched on this before. If you look at the performance of the dividend aristocrats, over the last three years, on average, that's actually trailed the market by a percentage point or two. But we look at the last five, 10, 15 years, the return of those dividends, the proven nature of those businesses, the return picture is much better than the S&P 500. And the companies that don't pay a dividend at all are the worst performers, trailing performers. The only ones that are slightly worse than that are the companies that cut their dividend. So, dividend aristocrats, those companies have shown over time they can pay the dividend. That's really been valuable for shareholders over the long term.
Hill: Definitely a red flag anytime you see, not just a dividend cut, but in the case more recently with General Electric, a couple of dividend cuts in a row.
Jason, it's not all sunshine and rainbows. We've been talking about a lot of the positives here but there are some pitfalls when it comes to dividend investing.
Moser: There definitely can be. One of the things that I look back on, and it's tangible for me because I talked with people who were really affected by this, you just go back to the Great Recession. It seemed like everything was going to hell in a handbasket. A lot of the companies that were feeling the brunt of this pain were big banks. And big banks, for a really long time, the investing case in those banks was twofold. It's going to be a nice, long-term holding, they're going to keep on paying a dividend, they're going to keep raising that dividend, and they're going to keep buying back stock. It's going to be a nice way to keep on returning value to shareholders in a market that probably isn't going to go away. And lo and behold, a lot of these banks got caught behind the eight ball. A lot of them had to slash their dividends meaningfully. I talked to a lot of folks who were more in that "protect your wealth" stage of life. A little bit older, focused on protecting their wealth, a little bit less concerned with growing it. They had a lot of exposure to these bank stocks with these big dividends that got killed. They lost a lot of real, tangible money immediately. So, just from the diversification point of view, while we love dividends, you have to make sure that you're not just dividends. Bad things can happen.
Hill: Andy, let's be fair to the companies -- in a lot of cases, when a company is cutting its dividend, while dividend investors may not want to see it, a lot of times for the company, that's the right fiscal move.
Cross: Yeah, they have to. They have to preserve capital. They stop doing a lot of things, not just paying dividends. They often let go of employees. You mentioned GE, and there are certainly others, and Jason's exactly right, during the financial crisis. This is one reason why, when you're looking for these dividend companies, companies that have a proven track record, the business model and the profit picture to be able to sustain that dividend, they're operating in markets that are growing, and they have a management team that's really committed to that. When you think about that, low payout ratio and dividend yield certainly matter as well, too. Those are kind of the companies you want to find. If you find the opposite, those are the ones you want to stay away from.
Moser: You find those businesses where their model is based on a commodity. Oil, I'm looking specifically in your direction. Those oil companies, when oil prices plummet, are they going to be able to sustain those dividend yields that they've been paying out? Chances are, it might be a little bit more difficult. We talked about here over the past week with the Saudi Arabian crisis there, with the drone attacks. And that's not oil's fault. It's just a geopolitical risk that comes about. The fact of the matter is, you have to incorporate that into your decision-making, understanding that there are bigger forces at play that can affect the business model if it's based on some kind of a commodity like oil. That can make sustaining those dividend payments really difficult.
Hill: Keep the questions coming. We're going to be getting to those in just a second. If you liked the video, please give us a thumbs up. It helps other people find the video. We're trying to help more people.
Let's get to the dividend stocks. Jason, you're up first.
Moser: Everybody likes to look at Apple. I think Apple's the darling of the tech world. But man, has Microsoft (NASDAQ:MSFT) really made a resurgence. I have to say, I was a little bit skeptical many years ago, but to watch what's happened since Satya Nadella took over has been nothing short of remarkable. What he's done there, building out the cloud offering, doubling down on what they do really well in enterprise software. This is a company that makes a ton of cash on an annual basis. Like we were saying before, companies that make big amounts of free cash flow, they've got to do something with that cash. Oftentimes, it comes in the form of dividends. Raising dividends, buying back shares. Microsoft is going to be a company, I think, where their software is going to continue to play a big role in our lives for many years to come. They are certainly developing cool new technology on the augmented reality front with HoloLens and all those different types of things. To put some numbers around it, they brought in about $40 billion in free cash flow last year. They're spitting that money back out to shareholders in the form of dividends and share repurchases. I suspect over the coming years we're going to continue to see that. While they're really big, I don't think it's reasonable to expect them to double over the course of the next five or even maybe 10 years. But they're going to keep on bringing it a lot of money, and they're going to have to do something with it. Shareholders are going to benefit from that, I think.
Hill: Timely news -- Microsoft announcing today they're hiking their quarterly dividend by 11%.
Moser: I can neither confirm nor deny that it had anything to do with my selection today. It might have had something to do with my selection today.
Hill: Andy Cross, what about you?
Cross: Jason, Microsoft, such an amazing company. A very large company, more than a trillion dollars market cap. I'm actually going to the other side. I'm going to a company called Houlihan Lokey (NYSE:HLI), which is a $3 billion boutique investment bank. While it's small, its numbers are actually quite large. It's one of the largest investment banks that consults on mergers and acquisitions, bankruptcies and restructuring, and corporate actions, and then advisory services as well. It's a $3 billion company. It's only been public for a few years. They started paying a dividend when they went public in 2015. They've doubled that dividend over time. Now it pays a $0.31 quarterly dividend. The stock's at about $46, so the yield is a little over 2.5%. I like that. When you think about where the 10-year Treasury note is today, it's at 1.8%, maybe. So, you have a nice little difference there.
It's an investment bank. Like I said, from a volume perspective, it's one of the largest. It actually contributes a lot of consulting work to smaller firms in the mid-market space. What I like about it is, it's very profitable. They have returns on equity north of 20%. They have a very nice balance sheet. They have a profit picture of somewhere between 10% and 20%, even during the financial crisis. Jason, you mentioned the big banks. Houlihan Lokey actually maintained their profitability and kept their operating margins above 10%. When I think about the growth picture, they've been able to grow revenues 13% per year for the last five years; profits more than 20%. The payout ratio is below 50%. When I add that all up, I see a smaller company being able to grow their dividend over time. The stock's not that expensive at 17X earnings. It's a much different picture. More volatile. Microsoft has a volatility beta of less than 1. Houlihan Lokey's is 30% higher than that, so it's a little bit more volatile. But I like the growth picture and the ability for the stock to grow because of the dividend.
Moser: It's like peanut butter and chocolate. Put those two together, I think you have a pretty wicked combination right there.
Cross: I like that.
Hill: Alright, let's go to questions from the audience. First up is Dan, who asks, "Is it better to have dividend stocks in a Roth IRA, a traditional IRA, or a regular investment account?" Any preference there, guys?
Moser: The traditional wisdom says that if you keep your dividend paying stocks in tax advantaged accounts, whether that's a Roth or a traditional, that typically makes more sense, as those dividends are not going to be taxed necessarily like they might be in a regular account. With that said, when it comes to tax situations, everybody's situation is unique. I encourage you to take a look at the bigger picture. But the conventional wisdom is keeping most of those dividend payers in your tax advantaged accounts makes a little bit more sense.
Cross: I will say, for partnerships like master limited partnerships, you do not want those in tax advantaged accounts because those are partnerships and the taxes are much different. You don't get the tax benefit from the MLPs, master limited partnerships, in a tax advantaged account like you would in a non-tax advantaged account. That's one thing. But, I agree with Jason. I own a lot of dividend stocks, and not in a tax advantaged account, and I see every year those dividends get taxed, so I pay the tax man for those.
Hill: Robert asks, "Is it better to reinvest your dividend via a DRIP or take the cash?" A DRIP, for those unfamiliar, dividend reinvestment plan. Seems like a personal preference kind of thing. Certainly, if you're a big fan of the company and you think it has good growth prospects, getting more shares might be the way to go.
Moser: I do tend to like reinvesting from the perspective that it protects you from yourself. It takes some of that impulsive decision-making off of the table. By the same token, I will say that typically, I take my dividends in the form of cash because I like building that cash balance up and redeploying it to new great ideas. Again, it depends on if you're in that "grow your wealth" phase of life or the "protect your wealth" phase of life. You're right, it is a personal decision; one that you have to consider.
Cross: You do like that "money in your pocket" thing. Yeah, it's a personal thing. For example, my Home Depot, my Pepsi, my Comcast, I reinvest those shares. I've held Home Depot for decades, and I just love to see that stock compound like that and get more and more shares. My parents, for example, are in a much different stage than I am, they depend on their dividends for income. They need that cash and they don't reinvest the dividends. It really depends on where you are and what you want your portfolio to do. It's a little bit of, what'd you say earlier, Jason? Chocolate and vanilla? Peanut butter and jelly?
Moser: Maybe a little Reese's Peanut Butter Cup.
Cross: You have to understand what those dividends are going to do for your personal finance situation, and make your selection accordingly.
Hill: A few people asking, "Should all companies aspire to pay dividends? Is there a time when a company should not pay a dividend?" Interesting question. We talk all the time about, one of the major things that company management has to do is allocate capital. Paying a dividend -- you touched on this earlier, Andy -- it seems like one of those things, if you're going to start paying a dividend, you'd better start thinking long-term about how committed you are to it, because once you start paying it, very quickly people get used to it. And it's not just people. Institutions on Wall Street may be thinking about adding you to dividend funds and ETFs.
Moser: You're getting married.
Cross: It does add discipline. A lot of people will say, and I think it's true, especially when you look at the dividend aristocrats, it does add discipline. A company like Sherwin Williams, it's done so well. The stock has done phenomenally well. They consistently add to the dividend. It doesn't yield very much, but they have the consistency of growing that. Berkshire Hathaway is a very large company run by a very smart person. I own it personally. It's has committed to not paying a dividend. Warren Buffett does not want to because he sees his job as allocating capital. He thinks he can do better than paying a dividend -- which, by the way, it's taxed at the corporate level, and then you're taxed when you get the dividend to the income level as well, too.
I don't think companies should necessarily aspire to it. It depends on how you want to think about your capital allocation strategy at the board level.
Moser: It does feel like, in some cases, it's almost like this sense of capitulation. "Alright, I guess we're going to pay a dividend." You feel like, if Berkshire ever pays a dividend, it's going to be like that. They're going to be like, "I guess we'll pay a dividend but we really don't want to because we feel like we can do so much more with that money." And that is what it boils down to. Management thinks they can allocate that capital better. Let them try. But the track record is going to speak for itself.
Cross: I think that's what happened with Apple. Chris talked about it earlier. So many people were saying, "You generate billions and billions every quarter. You have billions on your balance sheet. You have outstanding returns on capital, but you cannot invest that money fast enough, so you need to return it back to shareholders." They have, and it's been a very nice catalyst for Apple shareholders over the last couple of years.
Hill: To go back to the dividend aristocrats for a second, it does seem like one of the benefits of older companies and more mature management teams is, the longer they have a track record, the better we as investors are able to evaluate how they are at capital allocation. Dividend aristocrats, they've got a really good track record of increasing that dividend. There are other companies out there, Jason, that are not paying a dividend, but they've demonstrated a good ability to deploy the cash either in investments or even in acquisitions.
Moser: I'll go to what we talk about all the time as our baby Berkshire Hathaway, Markel Insurance. That's a company that a lot of us own here. A very similar model to Berkshire Hathaway in that it's an insurance business. That insurance business helps it do so many other things, one of which is this Markel Venture side of the business now where they are investing in and wholly owning smaller businesses to build out this nice, diversified cross-section of the American economy. They're not paying a dividend right now. But you know what? I don't want them to because I believe in Tom Gayner and what they're doing there at the company. The track record tells us that they've gotten this far based on all these awesome investments that they've made. I'm really excited to hold those shares over the next hopefully 10 to 20 years, even longer, to see what they are able to do with that money beyond having to worry about paying a dividend. I do feel like a company at that stage of its existence, there's no reason to pay a dividend because they have so many opportunities ahead of them.
Hill: Great question from Warren, who asks, "The Motley Fool loves subscription businesses. What is your take on utilities? Aren't utilities the ultimate subscription business?"
Cross: [laughs] They are. They're also ultimately regulated very toughly. Their rates are set. They're known as dividend payers. Over the years, lots of investors have gone into utilities. From our perspective, the growth picture and the regulated nature of those, they've not always made the greatest investments. Exceptional use of capital. Of course, Warren Buffett -- like I said, I own Berkshire Hathaway, so I have a lot of exposure to utilities through the MidAmerican business that Berkshire runs. The investment nature of utilities doesn't necessarily warrant the capital appreciation, even though the dividends may be attractive.
Moser: They tend to ratchet up the debt levels. They can, they can afford to, essentially, because they have to. They're utilities, they can't disappear. But that can certainly add some uncertainty to the picture there. A company with really high debt levels, utility or not, you have to keep that in mind.
Cross: From a yield perspective, when you look at the S&P 500, the utilities in the S&P 500 average are yielding 3.2%. That's much different than the tech companies in the S&P 500 that are only yielding 1.3%. A lot of people say, "Wow, utilities have that higher yielding picture. I can get that yield." That is true. But as Jason mentioned, the business, the regulated nature puts a little bit of risk and uncertainty. Not the most attractive investment opportunity. It ultimately is a lot about total return.
Hill: Tim asks, "What is your take on Altria? This is a company facing a lot of backlash and long-term headwinds, but it also seems like a pretty compelling dividend stock." Altria, formerly known as Philip Morris. A lot of people avoid this stock because they're not interested in investing in tobacco. But from a dividend perspective, this stock has been a monster.
Cross: It's been one of the best performing stocks. I actually own a little bit of it personally. I'm not really excited, haven't added to it for years. Like I said, it's a small part of my portfolio. I get a little bit of the dividend. Historically, it has been one of the best performing companies. Lots of challenges with its business and with the consumer nature of its core product that I think a lot of people shy away from. Ultimately, that's your decision, if you want to invest in a company like Altria. You have to make sure the business is stable enough to be able to sustain that dividend and make sure they can grow that dividend. Some people may say the long-term nature of Altria as a business is just not what they want to invest in.
Hill: Jonathan asks, "How are you feeling about AT&T or the other telecoms as dividend plays? Their dividend yields look pretty good."
Moser: I have to say, personally, having looked into AT&T and Verizon recently for Augmented Reality, the reason why I'm looking at them for that purpose is, they're the ones building out that 5G infrastructure, which is going to be a requirement for technology, to make that next leap for things like artificial intelligence and augmented and virtual reality to start playing bigger roles in our lives -- these are ultimately utility stocks. They have these huge networks, and they can't go anywhere. They can't shut them down. They're going to be around for the time being. Probably not the best growth story in the world, but they traditionally yield these really attractive dividends. Frankly, I don't see that going away anytime soon. I do think they could certainly serve a role in anyone's portfolio as a lower-risk way to get some utility exposure. Maybe they're playing a little bit more into the technology wave as opposed to something like a water company or a gas company.
Cross: Yeah, that's what I was going to say. A lot of moving parts. AT&T and its subsidiaries and Verizon making a lot of acquisitions into its space, then getting rid of them and changing them. At the corporate level, a lot of changes. The yields are very attractive. Historically has been a pretty good, stable business to invest into.
Hill: Manini asks, "What happens to the dividend when a stock splits?" I don't even remember the last time a stock in my portfolio split. It seems like, as dividends are getting more popular, stock splits are getting less popular.
Moser: I guess that's true. It does feel like probably a lot of folks out there taking pride in that bigger share price. I know from an absolute dollar perspective, it scares a lot of investors because they think the stock is too expensive. But let's not confuse price with value. We can probably do a whole 'nother live stream on that alone. Ultimately, though, the dividend adjusts with the stock split. It's not like you're going to double your dividend.
Hill: James asks, "Can you go over how to start DRIP-ing your dividends in your brokerage account?" Again, dividend reinvestment plans. Such a great way to get started investing.
Moser: Yeah. One, make sure that your brokerage has the capability. I don't know that all of them do. But that's the first step. Check with your broker, see what the capability is there in regard to a dividend reinvestment program. Sometimes you have to go directly through the company itself. The company will work with you brokerage. But, start with your brokerage. They'll be able to guide you in the right direction.
Hill: Before we wrap up, what is something about dividend stocks that you think maybe gets overlooked? For a lot of investors out there, dividend investing has a reputation -- I would argue a good one. We've talked a little bit about how it can be an income play. Typically, as people get older, they tend to think more and more about dividend investing, as opposed to when they're younger, and maybe they're more into growth stocks.
Moser: Dividend investing to me all goes back to, the longer you're going to be able to hold the stock, the more sense it makes. You'll see in the financial media headlines every quarter, the company's payout date, they make the dividend payment, and then the stock price adjusts a little bit the next day based on paying that out. You have short-term traders trying to play a little a dividend arbitrage. That does completely miss the point. For me, dividend investing is one of the most sensible ways to invest. I'm not saying it's the only way, but I think every investor should have exposure to dividends. It takes a lot of the thinking out of it. Like I said, these are good businesses that are paying these dividends. They're happy to be able to do it, given that stage, given the success of the business. It's a source of pride for many of them. Like I said, it's like a little thank-you from the company to the investor, saying, "Listen, we appreciate you. Keep on owning our stock. We want to keep showing you that we should be in your portfolio."
Cross: From a volatility perspective, this is why I like dividends. If you look at the data in the S&P 500, the companies that have initiated and grown their dividend have not just outperformed the market by more than 200 basis points or 2% each year, but they've done it with lower volatility than the market by almost 20%. The companies that have no change, or those, even worse, that cut the dividend, tend to be much more volatile than the market. From a volatility perspective, dividend payers give that sense of security that a lot of investors get behind. The stocks tend not to trade as volatile as the market. Last point. It's no guarantee, but when you look at the dividend aristocrats during the years of 2000, 2001, 2002, 2008, times when the stock market was really volatile and down, dividend aristocrats outperformed the market. In 2008, they did lose money. They did lose. But they lost less than the market. In those early years, in the 2000s, after the tech bubble burst, they actually finished those years in positive.
Moser: A lot of people probably don't think about this. We've talked a lot about inflation recently and obviously it's been fairly tame, but dividend investing usually provides you a nice inflation-beating revenue stream there quarter in and quarter out. That can be really meaningful, particularly as you get into that "protect your wealth" stage of life where you depend more on that cash coming in.
Hill: We talked some about Microsoft. Microsoft is one of five stocks that is in our investing starter kit, which you can get by going to fool.com/start. Again, we talked about Microsoft. There are four others in the kit. Check it out at fool.com/start.
Thanks again for giving us a thumbs up! Don't forget to subscribe so you can catch all of our live YouTube videos. Andy Cross, Jason Moser, guys, thanks for being here! Thanks so much for watching. Fool on!