When asked about Apple Inc. (AAPL) and Microsoft Corp. (MSFT), which have low dividend yields, Clarfeld said: "We have large positions in both. We think MSFT is better positioned for better fundamental growth. Apple is going to be a solid grower but at a lower rate."
Cuggino also favors dividend stocks in a rising-rate environment. He named three that are in portfolios he manages and are "relatively cheap": Freeport-McMoRan Inc. (FCX), Lockheed Martin Corp. (LMT) and Morgan Stanley (MS).
As a miner of copper, gold and other metals, Freeport "might be a good one" for an inflationary environment, Cuggino said, while he likes Morgan Stanley for the prospects of higher net interest margins when interest rates rise. When discussing Lockheed Martin, he said that "defense is somewhat inflation-neutral, since you need it."
He believes all three have "long-term staying power" and are trading at attractive price-to-earnings multiples.
When asked if the strong performance of technology companies achieving double-digit sales growth might continue in any economic environment, despite high P/E valuations, Cuggino said, "We own Nvidia (NVDA)."
Here are dividend yield and forward P/E ratios for the stocks mentioned by Clarfeld and Cuggino:
-Philip van Doorn; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 01, 2021 10:39 ET (14:39 GMT)
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