Money manager Neil Hennessy is predicting a bull market.
Hennessy says that investors should focus on acquiring stocks which pay dividends.
Hennessy, chief investment officer for Hennessy Funds, which manages about $900 million in assets, said companies issuing dividends in turn boost the performance of their stocks.
"One way though that you can get your stock to move on the upside is either initiate a dividend or increase your dividend," Hennessy told Yahoo Tech Ticker.
Dividends are an easy and quick way to boost investor portfolios. With income rising from their portfolios, investors are more likely to spend money, creating a faster economic rebound, he said.
Many companies issue good dividend yields. Hennessy suggests companies across the spectrum such as McDonald’s, IBM, Wal-Mart, Ross Stores, Tupperware Brands and Dollar Tree.
Cisco, the tech company, is also a good investment since Cisco CEO John Chambers has pledged to issue a dividend before he leaves.
"Long-term, we're in a cyclical bull market — one that people don't believe in. The economy is in very good shape,” said Hennessy.
Stocks are a better investment compared to real estate and bonds, he said.
Narayana Kocherlakota, the new head of the Federal Reserve Bank of Minneapolis, predicts low growth, continuing unemployment and low inflation, Dow Jones reported.
"The economy is on the mend and should continue to recover over the next two years — in terms of both GDP and unemployment — but at slower rates than we would like," he said.
He estimates that unemployment will not decline by much in the next 12 months.
“I would be highly surprised if unemployment were below 9 percent by the end of 2010 or below 8 percent by the end of 2011," Kocherlakota said.
© 2017 Newsmax Finance. All rights reserved.