In this episode of Motley Fool Answers, Alison Southwick is joined by Motley Fool contributor, Dan Kline, and Personal Finance Expert, Robert Brokamp, to talk about privacy and scams. They discuss privacy concerns around apps and social media, a recent hacking, and how it could have been much worse. They also discuss some popular scams going around amid coronavirus and much more.
To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
This video was recorded on July 21, 2020.
Alison Southwick: This is Motley Fool Answers. I’m Alison Southwick, and I’m joined, as always, by Robert Brokamp, Personal Finance Expert here at The Motley Fool. Hey, Bro, how are you doing?
Robert Brokamp: [laughs] I’m so good. How are you, Alison?
Southwick: I’m doing OK. In this week’s episode, we’re going to talk about privacy, recent privacy concerns and stories in the headlines, as well as talk about some of the most popular scams that are flying around the internet amid the coronavirus.
Brokamp: If you’re interested in doing some scams, here are some ideas.
Southwick: [laughs] All that and more on this week’s episode of Motley Fool Answers.
Southwick: So, Bro, what’s up?
Brokamp: Oh, you know, about three things; three that I’ll bring up. So, No. 1, the doggishness of dividends. So, as we all know, the return from the stock market comes from two components: capital gains and dividends. Now, we have no idea what kind of gains, or losses, we’ll see from our investments from one year to the next, but dividends, man, they are remarkably reliable. Since the S&P 500 became an official index in 1958, there have only been eight years in which the dividends paid by the companies declined from one year to the next, in only two of those years were the declines above 3.3%. So, in 1959, they declined 13%; and in 2009, they declined 21%. 2009, by the way, was like the worst year for dividends.
So, how have dividends fared this year, at least so far, and where might they end up at the end of 2020? Well, Standard & Poor’s very conveniently released a recent article on that very topic written by Howard Silverblatt, who’s kind of like one of their head honchos in their indices department, and they do choose indices not indexes.
So, first of all, he included this interesting little bit of history, “If one thinks of dividends as a paycheck, a 25-year wage growth compounded using actual cash payments amounts to 6.4% annualized.” So, to me, that is a remarkable amount of growth in income, especially given that inflation over the same period was only 2.1%. So, you have dividends…
Read more:How to Detect a Scam | The Motley Fool