Tags: Berggruen | dividend | stocks | turmoil

Billionaire Investor Berggruen Bullish on Dividend Stocks

Friday, 21 Oct 2011 08:38 AM

By Dan Weil

Billionaire investor Nicolas Berggruen is worried about global economic turmoil just like the rest of us. But that’s not stopping him from buying undervalued stocks, including those that pay dividends.

Europe’s debt crisis and slowing economic growth worldwide are obviously having an impact on financial markets.

“I’m not optimistic in the short term,” Berggruen tells The New York Times.
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“I just think that if some businesses are going to survive, it’s worth investing now as long as it’s a real business, and as long as you don’t have to sell the stock to make a mortgage payment or eat next week.”

The difficult investing environment hasn’t changed the strategy of Berggruen, who likes retail, media and real estate stocks.

“I continue to do the same thing,” he says. “I buy businesses that deserve to exist but have been mismanaged. I feel there are more opportunities now.”

And Berggruen likes dividend stocks — “something I’d recommend to my mother.” In particular, he cites Nestlé and Anheuser-Busch InBev,

“If I had to put all of my money away and come back in five years, this is what I would do,” Berggruen says.

Ashok Shah, chief investment officer of London & Capital, is bullish on dividend stocks too. He likes the hefty dividends of blue-chip multinational stocks.

"We are in a world of zero interest rates, and anybody who can cross the 2-3 percent threshold starts to look very effective," Shah tells CNBC.

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