Breaking year for payouts, the best dividend stocks to own in this market. The Investment Committee is ready to go, Halftime Report starts now its great to have you with us on this friday, our Investment Committee, jim, josh brown, and portfolio manager, we begin with stocks, the dow hitting 29,000 for the First Time Ever, the question now, how far this market can really go, and whether its all happening a bit too quickly. Josh i come to you with that notion 37 days its taken to go from 28 k to, six stocks accounting for 950 of those points. I think its accelerated a little bit too quickly, and please take that in the context, i have been on this network for nine years telling you to buy, pretty much unequivocally telling you to invest. I do think were reaching the point where the chase is just almost visceral. Everyone you talked to, and then you look at the big leaders, and i own some of these, so again, take this with a grain of salt google, facebook, apple and nvidia gained 4 this week, like since monday, and thats not after being down for a long time fresh all time highs for facebook today, after falling 40 in 2019, so thats the only outlier where the stocks made a huge comeback. The rest of these have been grinding up for a long time. This is the fourth straight day of all time highs for google the Third Straight day for all time highs in both apple and the qs, second straight day of record highs for microsoft these stocks are now going vertical and i never love to see that the other thing i want to throw out here, more than 80 of the s p 500 is now above its 200 day. If you look back over the last four years when weve had a pause in the market, its always been accompanied by those types of record numbers for stocks an up trends and we quantify that by looking at names. If ever you were to take a moment, catch your breath, look at everything you own, how much stock exposure you have, relative to other sectors or investments, maybe this would be a good time. To your point, and im glad you mentioned nvidia, to me its one of the sign posts of whats happeninghere. Stock thats run up a lot, stock that continues to just get chased. High multiple, a lot of excitement, high beta. What happens when the stock continues to rise, wall street raises their price target again and again and again. You have today its being called a top semipick at bank of america. Lamb research, another example of this, stock thats had a huge gain, upgraded to buy bank of america. Some of these quote are getting embarrassing its not early to start upgrading or raising these price targets and the question of momentum and whether theres too much of it or whether you need to be concerned is one that we posed to professor Jeremy Siegel a day ago in the midst of this when we were on the doorstep of 29 k, heres what he said. Im just a little bit worried that this is becoming a momentum driven market at this point. You dont know how far it will go certainly no sign of a break right now. Aaron, i come to you, you know, the professor, said, i dont know that this is going to continue that long it may not last the quarter. What do you think about this question of too far too fast, too much momentum and not much else. I think its right that it is a momentum driven rally, and even if you look at the sectors leading this rally, theyre more of the momentum sectors, the breath was narrow, centered on the tech sector and the health care sector. What i think is also important to keep in mind is that we dont know how much further this is going to go. Its foolish to think that were not going to have a pull back. But i do think that if you look a year from now, so fast forward to year end, we will be at higher highs, and so i think that you can take some profit and cut some of the winners that you have had and take a little bit of cash on the sidelines, but i wouldnt take too much cash on the sidelines, i think the underlying dynamics in the market are positive right now. Were starting to see an inflection in earnings remember, 2019, earnings for the s p 500 were flat pretty much year over year, the outlook for 2020 is substantially better were looking for almost double digit Earnings Growth. Whether or not we get that or something a little bit shy of that, were still seeing a positive earnings trajectory, so i actually think thats whats going to be underpinning, a positive year for equities and what im looking for is a little bit of the breadth widening across the sector leadership in the s p 500 so starting to see more of the value, more of the industrial names, the bank stocks, take a little bit more leadership position or at least participating to the same extent. Its been anything but, right and you know, frankly, is there any reason to think its going to change anytime soon you have, you know, the faang stocks, the Communication Service stocks, fresh all time high today, another one yesterday. This is where the action is. This is where the action seems like its going to be. Why is it going to change anytime soon i cant answer your question, and in any defense, no one can answer your question it changes when it changes and a catalyst may be the Catalyst Next week that causes it to change the point being you cant try to predict it what you can do when the momentum runs out, trim your win ke ers. Theres no reason to expect a recession or bear market, when you see them roll over a little bit, rebalance whether its team your asset classes, trim your winners and buy your losers. Does it concern you as i said at the top, six stocks have accounted for 950 of the dows points between 28 and 29 right, so those six, you have them in front of you apple, google, 325 of those points alone goldman 180, visa 101, microsoft, 99. Its not going to trouble me, unless all of us ride it nvidia in a month up 15 whether you look at a stock like that or the market overall, i will tell you definitively, nothing fundamentally has changed in the last 30 days, actually at all because the trade deal was priced in at that point in time. Nothing has changed to cause the markets to go up like this this is not about fundamentals, its about momentum. You ride it until it pulls over and falls back. To your point, though, if you look back through the great bull markets of history, they have all had concentrated winners at the top. They have all had giant stocks that have pulled the rest of the market with them, and we can go back through any era, and i can tell you, four or five of the biggest stocks in the country and i can tell you that the dow was largely driven because of how well those stocks have done. We didnt have trillion Dollar Companies back then. We also didnt have the same degree of globalization. So a company like apple or microsoft is now not only dominating u. S. Business but is doing business all over the world. There are mitigating factors for both arguments 82 of the s p is above 200 today. This is not about five stocks doing all the work, and Everything Else looking terrible and the market being hollowed out. Its actually the opposite european stocks are rallying apologi japanese stocks are rallying, chinese stocks are rallying, they are echoing whats happening here, and even look at like some of the worst stocks from around the world. Deutsche bank and credit suisse, cs and db for those playing at home have had incredible runs. Thats not happening as a result of u. S. Tax policy theres something bigger going on right now, and i do think that the trade war and the ongoing commitment from Central Banks to keep rates low are the big factors to watch, and thats whats happening. Sure. And the question as pisani raised today, near term top, the professor yesterday by the way went on to say im worried that something is going to puncture it, meaning the rally, and when the market falls, it will fall a lot, and he used january of 2018 as an example of a huge run up and then something causes it to pop, and then the downside is we only fell 13 . It wasnt catastrophic. And the three of us were there at the super bowl, josh, you and i and pete, we were there at the super bowl. So fun. Right when that 600 point selloff began, scott, and then it continues into february, and accelerated. Correlation perhaps thats why theyre not sending us this year but scott, one of the many stocks you didnt name when scott was talking about the stocks that have been contributed to the big rise so quickly, boeing of course flat over that exact same month that youre talking about flat as a board. I think an awful lot of us. Boeing specific story obviously. Biggest holding of the dow, we would be at 30,000 if that stock was doing half of what apple has done. Fair. Exactly and i think a lot of the folks that, i mean, i wrote this up, scott, in the second week of december, anticipate that people will prolong the sale of stocks until early january. The reason youre not seeing those faang stocks in particular, scott, selling off right now, is the ces show we have talked about because of 5g, and Health Care Stocks, is because of whats going on in San Francisco with the Jp Morgan Health care. If i said beyond meat is up almost 30 on the week. So what, its a 5 billion stock. Im just saying. It also had gotten cut fairly substantially. It was 230. So it from 230 to 75. Its up 30 is that a barometer for anyone is that a barometer for anyone. No. But if you package it dont you think, scott. If you package it with other names, does it cause you to step back and say. Dont you think i could find a version of that. Thats the ultimate momentum stock on the up side as well as the downside, is it a barometer for momentum, yes, maybe i dont think you can extrapolate that to any thing in the market. Youve got beyond meat, not impossible, doing the impossible, up in canada they are having mcdonalds running test kitchens and distributing. Thats not enough news for a stock to go up. Its emblematic, is it not, about where we are. Scott, i think youre pulling your punch here, and its probably because youre tired of talking about apple because we talk about it every show thats emblematic, its up, what, 12, 14 in a month john, you have been saying ces and 5g for a month im telling you, its priced in in the last 10 to 12. Now it is, i agree john. When it goes up today, a point and a half, you know, that is not 5g, that is momentum. Is it dangerous, yeah, of course its dangerous, but heres the thing, two weeks ago it was 293 a share, so right now at 310 if it all of a sudden goes down 2 , if anybody is ringing their hands and saying should have got out at 312 forget it, get out at 306, 305. Or dont get out at all. Where we were yesterday, i read off to all of you, i dont know, 30 stocks, 25 stocks that were either upgraded or had their price targets raised yesterday. Dare i say all of them i can assure you most of them had already appreciated a lot in terms of stock prices. My point is they continue to go up and we continue to raise the price target. Thats how analysts do. Thats what they do and they raise the target just so that when the stock falls, they can cut it. I get it. All thats true, but in some cases, it causes the stocks to continue to go up. I think there used to be. I dont think stocks are moved the way they were ten years ago. I think the analysts mostly are trying to catch up the stock Prices Higher or lower, more so than they were affecting their price beyond one day or the first hour of trading. In order for them to hold those stocks, scott, if youre the analyst for apple, for instance, and you have not increased your price target, increased earnings or some other metric, youre kind of foolish, looking to the rest of the people that your information is disseminated to, because theyre like, well, why are we Still Holding it here unless you have further growth out there into the future, and how far out there into the future, and is it 350. Is it 375 or whatever. Thats why i think youve got a lot of those upgrades. More on the valuation from barclays, today, while our model indicates that valuations are high given the mack ma crow environment, we believe a combination of the fed put as well as an easy soft environment, to that point this isnt stopping anytime soon. You dont usually see significant multiple compression. You will not see expansion either, so it means that the growth that youre getting in the stock market prices is primarily going to be driven by earnings and by the trajectory of earnings Going Forward. You sure better hope that earnings are good. You have to have earnings deliver but i think what was pointed out early which was an important point which is that you are seeing the breadth in terms of International Expansion starting to participate in this rally. You see now euro stocks, emerging markets having a little bit of life to it, and starting to also, you know, climb to the upside, and i think thats important because thats really being driven by the fundamental changes that were seeing in global pmis, global leading indicators which are starting to inflect more positively, and starting to foreshadow a better outlook. Last time that i think we saw you, by the way, happy new year. Thank you. I thought you were under weight u. S. , relative to the rest of the world. Right, and that worked in part of the depending on where you placed your bets, i think Going Forward were going to see, lining were taking a little bit of a barbell where we think the tech is going to outperform in the u. S. , but we also like emerging markets here, and start to like euro stocks as well. Are you now overweight u. S. Relative or holding your position of under weight u. S. Stocks relative. Were overweight u. S. But its very centered on particular sectors within the u. S. , and then we also are overweight emerging markets as well all right well, our next guest is not so worried about valuations getting out of hand, tom lee joins us now on the phone tom, welcome hey, thank you. Happy friday. You as well your reaction to dow 29 k first and foremost you know, its an important milestone. Dow is a funky price weighted index. Markets up five of the last six trading days and i think it bodes well for 2020. Is it justified, i said 37 days from dow 28 k to 29 k, professor seigle seems to be growing a little more worried. Hes been described as a permable when the permable is now getting worried, shouldnt we all . You know, i mean, a thousand points now is 3 , right, so its not the same as 10 to 11,000, we have obviously had a big move. I think people think part of this is fomo, but because its coming at the end of last year, and the start of this year, i think its people repricing risk i think it got elevated after december 2018. I think people thought there was a Recession Risk that was elevated throughout all of last year, and now that were entering a more stable environment with the pmi recovering, i think risk premium, multiples could expand this year, on top of Earnings Growth there could be a pull back i know you were all talking about that, but i still think you want to buy that, because i think we could end 2020 with more than double digit gains. You look like you want to get in on this. Im just curious, tom, im just curious, why would valuations, expand not that there has to be a catalyst, but what are you thinking would cause people to say, not only will i pay 19 times earnings for a large cap growth stock thats grown revenue 7 or 8 , ill actually pay 22 times what would have to be going on in the environment to make that likely sure. Theres two factors at play. One is, lets say that we are in this sort of fed is easy, so Interest Rates dont make big moves. Thats one im pred the katiicating that o view today stocks are cheap earnings yield against a companys own borrowing cost or earnings yield against the tenyear, which is a proxy of risk premium today thats over 3 1 2 Percentage Points. Thats pretty elevated, especially in a stable growth low inflation environment and if that risk premium falls a hundred basis points, were talking about 7 1 2 Percentage Points rise due to just valuation expansion. So i think pe could go up just because if the tenyear doesnt blow out and if credit spreads are stable, stocks relative to those are actually cheap, so that is not necessarily a catalyst but i would say in a better earnings environment we might want to pay more for earnings visibility. Im going to tell you, im going to advise you to stay off twitter today, tom, because on a day when the dow hits 29, and tom lee says quote stocks are cheap, there are those who are going to say youre a blinded bull willing to ride this market up and up and up. Well, you know, im kind of so i have to look at it with one eye closed anyways, but for many people who think that, oh, 2019 marks market top, surely after survey shows throughout last year, the institutional universe went from a big underweight on equities to maybe neutral. The active management universe isnt that bullish on stocks and its because part of them had lingering concerns about a recession. Part of them think stocks are expensive. When consensus is strongly anchored that way, now, it could play out that way, but to me, as long as the fed is accommodative, and we have this global recovery, and geopolitical tensions dont go crazy, i could see how Risk Appetite could grow this year. How good do earnings have to be to allow your thesis to play out . Thats right. So we wrote about in our piece today showing that top line growth didnt contract even though we had an earnings recession, so thats different than 2016. Twif 2015, 2016, where top line fell first, and weve had, you know, over six months of pmis being weak, so i think 2020 is the recovery from that shallow earnings recession, a lot like 03, and 05, and in those case, the groups that had the biggest earnings drags like tech, industrial, energy materials, and theyre pmi sensitive, and that gets investors willing to bile them. Theres earnings revision, and pe expansion i think theres reasons stocks could go up this year. Im looking at your target, which is 3450, right yes so that implies, what, a 5 or so up side. Thats not like a tremendous hyperbolic move from here. Are you looking for volatility at some point during the year which brings you back down to 3450 at some point or help me through that yeah, sure. Its two parts one is, 3450 is purely no pe and just e rising, so, you know, i think if you get one turn of pe then thats 150 points, so we could be 3,600 by one multiple turn of pe plus earnings in terms of the year, i would say, you know, its difficult for us to have a sort of sixmonth visibility on looking at stocks in that short of time frame, but if this maps out to 2010, you know, we would be peaking in february, sloppy into june, and then the second half is stronger because, you know, you have the primaries behind us, and a much deeper into that pmi recovery, so i would say a lot of the gains come in the second half. Well see tom lee, appreciate it, as always tom lee joining us there. Thanks, have a great weekend. You do as well. Im sorry, if the first, like, leg of that stool is that the fed stays easy, i mean, 2. 9 wage growth is not hot, but it aint falling asleep either, and i dont know that its a guarantee that the fed just stays easy forever no matter what happens youve had rosengren veto every cut last year, and hes going to keep doing that. You have this guy kaplan whos a Voting Member talking about excesses and imbalances, thats code for bubble. Hes looking at the stock market too. These people have bloomberg terminals now. This is not 1989 where they focus on the economy they look at the stock market, they know the stock market drives the economy anyway. Its not a guarantee well keep hitting milestones, dow, 28,000, dow 29, dow 30, and the fed sits there, like wage growth is sub 3 i think if thats the major thing thats going right for us, and were just going to count on na being the case forever, that would probably be a mistake in my eyes. The bias of the fed now just given where inflation is, you hear people talk about the ability to cut, they should cut. I think that the bias of the fed is still to remain easy and theres 19 basis points priced in to the forward curve right now with respect to 2020. With all due rmespect, the bias of the fed, a year ago, maybe 14 months ago was to keep hiking there has been a fundamental shift in the way that the fed is thinking about the symmetry with respect to inflation whereas before inflation 2 was in some ways a cap with respect to where they would allow inflation to go now i think that over the last year, over the last 12 months or so, theres been a fundamental shift in the way they think about wanting to balance their economy and balance rate cuts with having some room to overshoot on the up side to allow for, you know, an undershoot during times of stress in the economy, so i do think that the fed is going to remain on hold i think theres some likelihood that they could do one more cut, but whether its one more cut or they remain on hold this ear, the point is the same, but i dont think that theyre going to be hiking ratings in 2020. I just want to say the 2. 9 wage growth from december actually is misleading because beneath the surface, people in lower paying jobs are seeing wages rides the fastest, which is great, i dont think its a negative the fed seems to be more tolerant theyre willing to let things run hot. We havent seen things run hot yet. I dont think its forever. No, its not forever. Theres also been a number of fed papers and research thats been done that shows theres a break between Wage Inflation and core cpi, which is ultimately what the fed is reacting to. Theyre not reacting to Wage Inflation care pce. Jim wanted to make a point, i want to get that in before i take a break. Im listening to all of this, and i believe the fed is going to stay accommodative, and tina applies, theres no alternative. In a 1 1 2 , 1 cash market, looking out there, and i dont mean to tease what were going to talk about in a little bit, dividend yields in 3, 3 1 2, 4 become awful attractive, low Interest Rates by the fed are creating tina. There is an alternative if you say well i think the u. S. Market is fully baked and go where i think there is more opportunity outside the u. S. People thought outside the u. S. Was too risky. Its a good point i dont think it takes away from what im saying, if i simply say that tina supports global stocks, then you and i are in sync but the point i really want to make, tina, there is no alternative regarding two stocks is a major force right now but last year, everything went up, including bonds, this that, and the other, heres what else is coming up on the half. A bullish bet on one chip maker already up over 80 in a year, ready to debate it in our call of the day, and dont miss jon najarians latest, the Halftime Report with scott wapner and the traders is back in two minutes stay restless with the icon that does the same. The new rx, crafted by lexus. Lease the 2020 rx 350 for 419 a month for 36 months. Experience amazing at your lexus dealer. Welcome back, everyone, im sue herera, heres your cnbc news update at this hour the Trump Administration announcing a new wave of sanctions on iran following this weeks missile strike on u. S. Bases in iraq. They will target eight Senior Iranian officials. Today, sanctions are part of our commitment to stop the iranian regimes global terrorist activities the president has been very clear, we will continue to apply economic sanctions until iran stops its terrorist activities and commit that it will never have nuclear weapons. In new york, Harvey Weinstein arriving in court for day four of his Sexual Assault trial. This as jury selection continues. It is expected to last two weeks. Judge james burke has declined a defense request that he step aside. The defense questioned whether he could be impartial. And several more lots of heartburn medication have been reca recalled due to the possible presence of a substance linked to cancer. Recalling batches of the popular heartburn drug zantac. That is your news update back to you. A bullish chip call in the chip space corvo upgraded to boy, they see the stock position for the upcoming 5g ramp that stock was up 85 in one year could have put this in the earlier conversation its all about 5g. Its all about handsets, apple and samsung, what do we think about this i feel like i already stole my thunder in the a block. Im going to say it again. First off, 5g, im coming at you. Pounding the table on 5g for apple and others to get this research note, this is going to cover everything we talked about in the a block, analysts just piling on because the stock was going up. Prior target was 80 i better get with the train before the train leaves me at the station. Listen, im trimming. Im trimming im not selling out right. Why am i trimming, number one, its up 40 in two months, you got to show some Risk Management also, by the way, up 40 in two months, im not selling the whole thing. I can say its attractively priced its ahead of itself, and 5g is in it, and in this momentum market, you got to trim your n winners and find cheap places to put the money. We have the wide shot so i can see all of you at one time is the bias on the desk now, has it shifted to what jim just said, looking through your entire book and saying i need a if im going to find opportunities, i need to trim some of my winners. I said it last friday, and ill say it again now, i think you do have to do that you do have to rebalance i mean, i was way too heavy in tech last friday and thursday and friday, i was an aggressive seller and i thought it was a gift that we were getting a rising market into that because i anticipated that a lot of people did what i did, held over the new year to see that calendar flip so they could push taxes out, i think jim is exactly right to take some profits here, and my core is that im really just holding on hard to apple and to microsoft but ive taken off all the calls in those two, except for calls that i have written against stock that i own and thats how im playing it here in other words, im taking some of those chips off the table and waiting for some sort of a pull back because we knew this one was there. It was on the calendar, just like we know Jp Morgan Health care next week at the westin st. Francis in San Francisco takes off, and ill be taking the Health Care Stocks in my portfolio off as they present at that conference. Erin. Semiconductors were up, what, 65 last year, and you have seen some of that rally continue throughout the beginning of this year i think that it is right to take some chips off the table, take a little bit of profits but im not rotating out of the tech sector, im rotating within the tech sector, looking at the software sector, up 30 . It was up a lot but it was up about half as much as the semis looking for things that i think have less, you know, sort of robust earnings, expectations built in but sticking with tech because i think that sector is going to continue to be a winner this year. I think this is the question that any investor is going to be not only thinking to themselves but asking their, you know, Financial Adviser that very question is it time to look through the book, and say i feel a little uneasy about some of these gains and maybe i need to do what jim did or dock did. Whats tough about that is theres always a reason to feel uneasy right now, we have a certain set of factors that would nak you say okay, this has gone up this much this is a risk or, you know, i have x dollars in gain in this one security i really dont think on an ongoing basis that investors are served by making those types of qualitative decisions because it goes from december to january or the dow goes up 15 in a given short period of time, so what we do with our Wealth Management climates is a systematically balanced twice a year, and neither of those instances take place in january or december theyre not related to the calendar thats number one. In terms of individual stocks, you will almost never find a successful investor whos a longterm investor in companies, in businesses, make moves just because its a particular time of year or the returns for the overall market looking at how the market is done, and then saying because the market is done so well, im going to have 10 less of this company i believe in longterm, i dont think that works either, so i would hesitate to say that there is catch all advice for everyone this is what you should do because the market went up its very very hard to do that. I have to run after this point, the other side of the coin is maybe some of the unease that were expressing is misguided, maybe you sit back, you know what, this isnt going to end anytime soon. Other targets, 3,500 beyond on the s p, rates are low, economy is good, earnings are going to improve. Why would i need to get all worried now . Maybe worried is too strong a word maybe saying that theres opportunities ahead, i mean, i personally believe that volatility is going to pick up weve got geopolitical tension rising, weve got elections coming up. I dont think were going to have some bare market. Raising a little bit of dry powder, trimming things that have gotten imbalanced and having dry powders for a day when things go down and you get everything on sale, im okay with that. Coming up, bullish options, happening today in one tech stock thats already up 20 in the last month johns got the unusual activity trade for us coming up next, and a reminder, watch us live on the go on the cnbc app, halftime is back right after this imagine traveling hasslefree with your golf clubs. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Cool. hey there im lonnie from lonnies lumber. If you need lumber wood, lonnies is better than good. We got oak, cherry, walnut, and more. And we also have the best selection of plywood clattering in the state. Hey highpitched laughter man dang woodchucks wood clattering stop chuckin that wood with geico, the savings keep on going. Just like this sequel. 15 minutes could save you 15 or more on car insurance. Welcome back, as of january 31st, uber will no longer operate in columbia. It follows the legal decision that said uber was anticompetitive with taxis, which uber has since appealed. Guys, this is another regulatory setback as uber faces issues in california, as well as london, and potentially other states in the u. S. Uber has a relatively small presence in columbia remember, it is battling the chinese Ride Sharing Company there. Uber shares a off session highs but still higher by about 1 unusual activity because uber is your number one today. Exactly, scott, and in fact i was in columbia a month ago, used uber and i will tell you that the lo of those taxi drivers were pretty aggressive against the uber drivers, so there was a severe push back, and deidra nailed it on that report as far as the option activity here, take a look at uber. Its up about 0. 40 right now, they were buying all morning long options that expire today, scott, too short for us, so instead, i really like the february 7th expiration calls. They were buying those thats the february 33s. They expire the 7th of february, and they bought them in pretty big numbers as you can see here. I bought those, probably be in the next two weeks second trade, take a look at met life, met the symbol, you know what they do they have the big building in the middle of manhattan. Only up 0. 13 right now, 52. 50. They are buying aggressively, and march, double nickel, 55 calls, they bought these for about 0. 60 so thats a cheap way to control an otherwise very more expensive stock, 0. 60 versus 55, love that. Be ill be in these calls probably two months. Quick update, just recently i did Virgin Galactic and we said maybe theres good stuff about to happen. Stock was 10. 77, take a look at the stock now, through 12. 65, scott, and the calls we talked about that were 0. 60 and 0. 70 are a 150 profit, and certainly out pace the stock. Good stuff, come on back over thank you, scott. Viewers are sending in questions on mastercard, gm, home depot and more. 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Were back, lets answer your questions, jim, from round lake beach, in illinois. What is point for gm. I like talking to a fellow gm i like gm, but its on a short leash because it hasnt done anything in a while. Youre going to get half of that in the dividend yield from gm but we need so see the Autonomous Vehicle unit start to perform the next quarter or two, i need to see positive updates from the company, im not going to hold this forever, im not married to. Josh brown from las vegas, do you expect to hold mastercard for the medium to longterm. Yes, i have been in it for the longterm already, one of the biggest winners i have had in my year, no intention of getting out of it. The stock looks like its embarking on a new run after a little bit of consolidation, so its me and warren buffet for the longterm, and ill be here. Good company. Right . Mastercard. Yeah, i mean. You and buffet. Good company. The thing is, everyone agrees with me. I should have been more specific i thought it was obvious, apparently it wasnt everything i said is very well appreciated by the market 320 billion enterprise value, its a consensus, im not breaking, you know, going outside the box with this. Understood. Erin from mark in oregon, reeds had a reits had a good run in 2019, will that trend continue this year. Were in a low inflation environment, which should beget low yields and Interest Rates, the tenyear yielding about 1. 8 and 200 basis points over what youre getting for a tenyear, Dividend Growth plus growth. What i would be focused on within the reits sector is look for the sectors underlying it, the data centers, industrial, maybe the health care components of reits, and staying away from the retailers which continue to consolidate and close stores. From jeff in modesto, california, home depot, what do you think about the depot. Made it about halfway back from the big selloff, back in the mid to high 220s, i believe, here, i like it theyre going to do some financing out to 2049, i like that too. He says im carrying a 10 position, and hes down over 6 1 2 on what is a 10 portfolio position, so its big, right, his question is to hold now or to sell it and move on to Something Else i would hold. I have seen a lot of up side call buying over the past several weeks, and i think because its a fallen angel of sorts, even though its a small fall for it, i like it. Good stuff. 2020 may be a record breaking year for dividend payouts, were going to go around the desk for the Investment Committees top dividend picks, first Brian Sullivan has a look at whats coming up on the exchange in just about ten minutes. Thank you very much, heres your random but interesting fact of the day, top five stocks in the s p 500 pick up nearly a fifth of the entire index. Could this top heavy market topple the rally plus, designed by clowns and supervised by monkey, those are direct words from one boeing employee describing the 737 max in damming internal emails, more on that incredible story ahead. And while Michael Bloomberg could become the most important person in the election, even if he does not win the nomination, all that and more on the exchange and scott and Halftime Report back right after this everything your trip needs for everyone you love. Expedia. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk welcome back. It is setting up to be a record year for dividend payouts. Dit payments are set to top 500 bhld f billion for the First Time Ever. Lets get some of your best dividend plays and ill give you citigroup, Marathon Petroleum and Cleveland Cliffs citigroup the pick of the decade yeah, it keeps coming up. But that has not shot up like the other ones these are all three in sectors that have barhave been basicall undervalued. They each have individual stories that are worth talking about. They have dividend yields i incrementally that are higher than at s p 500 and they are all growing. And josh. Im in jpmorgan, im in schlumberg schlumberger, verizon. But nobody should buy something just because of its yield. Stocks are total return vehicles you can have a stock yielding 4 that drops 30 congratulations, the yield is now 7 and you have lost a ton of money. So that should never be the primary consideration. Also, from the standpoint of taxes, dividends are hugely tax inefficient. So if you dont own these types of securities in an ira and you own them in a brokerage account, you should be rooting for shareholder yield which is some combination of dividends and buybacks on buybacks, you are not getting taxed twice. So im not a huge fan of things like aristocrats and first strategies you need to think when what the total return will be and what the tax consequences will be so at my firm, we do not recommend dividend strategies and we never will. Okay. Thank you for that somebody has to say this stuff. People have no clue. Which might as well be you youre kind of a downer people have no clue they say this is great, i get a check every three months yeah, and then you get to pay taxes on those earnings. Doesnt sound so great and im going to oak company the sentiment a little bit i dont like dividend payors outright i wouldnt be looking for the high dividend yielding stocks. Instead id be looking for dividend growers, companies that can return and grow their dividends and that is indicative of good earning, good Free Cash Flow generation, there is an etf that you can play it id be buying that not just looking totally agree with you on that and the more interesting thing is what companies arent paying dividends that should. Alphabet there are a number of names that might join the dividend payors list for the First Time Ever this coming year that will be interesting to see. Okay. Well come back and do final trades we see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. Wean air force veteran made of doing whats right,. Not whats easy. So when a hailstorm hit, usaa reached out before he could even inspect the damage. Thats how you do it right. Usaa insurance is made just the way martins family needs it with hasslefree claims, he got paid before his neighbor even got started. Because doing right by our members, thats whats right. Usaa. What youre made of, were made for. Usaa apple shares soaring 15 to a new alltime high in the past month. According to our data partners, after similar move, the trend tends to continue with the tech giant outperforming a month later. For know, go to cnbc. Com kensho. Welcome back well do final trades in a second you mentioned the Jpmorgan Health care conference and well be paying close attention to that. We have are. Egenero kceo on monday. Bristolmyers, eli lilly, allerg allergen yeah, hit 105 today on th this is what you would anticipate into a big conference like this is many of the stocks that will be presenting and or deals that could be talked about, now saying that they will be completed, but all that could be going on there. And i want to clarify, not a new high for regeneron and bristol, lilly, Medtronic Merck making a big move as well really phoning it in the end of the show here too many things on my paper and i cant read any of it oh, well lets did fino final trades the Bank Earnings kick off next week and i think that the banks have underperformed. If you look at positioning and you look at sentiment, positioning right now is the most negative it has been in eight years and when you look at the discount relative to the s p 500, it is trading at the most discounted level relative to the s p 500 in about the same time frame. I like the banks because although i do think that this quarter is likely to be choppy, you still have a lot of restructuring, a lot of writeoffs that you may see which will impact fundamental earnings when you look forward into 2020, i do think particularly in the second half of the year that the outlook likes a little bit better names will continue to be compressed and margins will continue to be underpressure given the outlook for rates. That said we could start to see some Earnings Growth come through on the loan side and i do expect to see loans picking up as we move throughout the year cramer talking about the setup going into earnings being tough for the banks. What have you got . Google alphabet momentum trade is alive and well and im playing it until it stops. All right dance until the music stops could stop on monday. Uber, i bought it in the middle of december it is up about 15 aboutme. 5 ye date and i start to think about maybe turning it into an investment. And i trade that hd that oney and the exchange starts now. Thank you, scott. Welcome to the exchange dow 29,000 was here but that may not be the number that you want to Pay Attention to in this market well tell you what that number is and why it matters so much to your money plus clowns and monkeys. Not words that you want to hear to describe airplane engineers, but that is exactly what boeing employees said