Stock Talk - Jeff Reeves, InvestorPlace.com

-- -- All right we're back this is the financial exchange June -- very Armstrong -- some texts and hear my Prius -- back. -- 50 wait he's the one. Hey Barry if you're so Smart and rich. Why do you own a Prius you'd be taken much more seriously if you owned a defense nobody -- you -- you -- -- to BMW I did well I I like German vehicles you know BMW stands for. Can't -- my window. -- get the good the New York for ten years. Where you come up with the thing we are joined by Jeffries from investor place dot com good morning Jeff -- how how you -- I'm ordered they were to talk about a couple stock picks that you have force today first one is General Electric symbol GE. With the dividend -- the three and a half percent why do you like. Well one of the -- -- is -- dividend not as many investors should now especially that problem not for a long time that key event has been -- -- -- where once was put financial crisis. He was kind of got it because it's GE capital division title at all and I. Arctic app that's the hurt that much about. -- stock swap forty laid down the at least ten dollars in 2009 kind of look at that it's funny but. You get a good news from dividend is that he just announced last week that GE capital's Mexican and we didn't. Optic Internet back to the parent until for people who are committed an election. General topic it's kind of big conglomerate got much deeper divisions you know and it. Turbines are you know nuclear power plants and other capital division and that has been one of the big extract -- the company -- that the capital arm but now. It's it's functioning well and that actually. Include that -- paid special dividend in the regular dividends back to the parent so while some of the industrial operation arc within war on GE -- pretty much back to square ticket you're pretty well now. Gonna start taking more dividends that shareholders yeah about three or after the start. So what do you expect to Jeff what do you expect the dividend dungy even go to at 68 cents a share now. Well you know I think it's realistic to think that they're at a couple more parents. I mean per quarter according to data -- -- the -- is inaccurate at seventy pence a quarter. On the but yeah I think it's real and it might be able to get in nineteen or twenty of the big trouble with the court to decide outward sign off on that -- You know pretty much heat as Bank of America you according to the rules without it was their parents are not funny dividend increase -- but it's very -- -- they've been allowed to kind of -- state. Political reinstate from the division back in the parent. I think it could very well get back got up to twenty. You may be higher in the next year or subsequent to quarter which could be eighty cents a year -- again. It would active stock price -- -- this stocks at nineteen dollars and seventeen cents now if they raise their dividends from 68 cents to eighty cents as you're suggesting. What does that what does that interpretive in terms of stock price gains. What are you and that's bigger that what we're talking about right now technically are being more about -- you to Wall Street cliche aren't you need to let. Our trade again the first quarter of the year I think people really into. But he brought in announcement in you know kind of the core financial stocks intact. I think people are kind of looking on defense configured especially walnut European aircraft now about the debt ceiling debate apparently going to be another problem in America the markets might. You know -- Iraqi I think investors are once again on the defensive I think that that's gonna help. GE you know these kind of you know quote unquote it -- stocks -- right here oxygen and stick around you're I think there's going to be an architecture behind act and he got into it but let me count at about its speed back in the next you know two years -- years General Electric with all the figures in the policy. Had that's -- -- and it starts the earnings growth deputy short term upside because investors -- happens like the safety but -- about the economy will turn around and use that wouldn't be excellent stuff. Okay now and the other thing that makes me optimistic about the economy GE capital is making money that means they're making loans -- That that they -- are going to hate it is that's how they make money GE capital is a commercial lender. So if there ain't so it just or listeners understand this is it not only is it and it indication for GE stock. It's an indication for really the worldwide economy because they they do things like financing -- jet fleets. Nuclear power plants as you mentioned major industrial projects are financed by GE so -- loaning money that means that the economy should be getting healthier as well. Yes cook that's completely right in part of the problem once again the financial -- the company like GM -- which would just integrated actually into the auto loans. Product -- crazy and started in the under the topic out that they can or should have been -- AIG paid way. Insurance and and got into you know all the credit default swaps so GE capital kind of -- the covered in the finance crisis now that's back in court what he talked about. Actual capital lending to businesses need the money to expand to grow it's a really good organic growth story you know the president touted as a turn around and -- think any of us that he hoped it. You know despite -- sluggish situation that we're now. Dragged on for a three or four years to believe that it actually we're gonna get out of this deep it was the. Right now you also like the Hershey company it has a dividend it's a modest dividend 2.2 percent trading at about 67 dollars a share I like Hershey products chocolate. But I don't know about the stock question I like the stock. Well you know it. The first he would a pretty good start I think it in the right place right time right now it's it's a little bit on the smallest -- market -- is about -- -- about fifty billion so it's not like a -- passed it's one of these would be much larger consumer staples dot political gets smaller and it does not significant upside in emerging markets failed you you I think it in straight quarters. A year over year revenue growth that into the company's current fairly quickly because it's not. All over the world -- -- black folk are tucked its right now but about because I like you couldn't -- either of them burned out outlined in the quarter percent. But again treasury yields that the tenured -- is one point seven right now so yeah it in the now unlike a lot but during the alternatives you know two point seem to occupied it and that's pretty good right now. I'm so I mean like attracted virtually. You know it's great it's on twelve guys -- -- big into working markets. This stack market worldwide distraught like yank options -- the reasons the crap that. Times when at its operations to capitalize on the growth so perky is. I believe it's active gold potential got yeah kinda stable dividend attracting investors right now in the short term and longer term I kind of believe that the emerging markets aren't -- -- just pick up and are pushing -- I don't have a little bit RE right now I think it's about eighteen it's kind of went up dramatically. -- it out at some of -- and its rivals. -- on a little bit of the popular wanna you know kind of wait a little political pull back. In Hershey but up your long term buying gold master again -- 2.2 percent it and compete more than treasury good portion going to be very popular vote -- Very good to a Jeff thanks for your time sure appreciate it. That's Jeffries from investor place dot com joining us today on the financial exchange with his stock picks if you missed them. GE -- one and he likes that because he thinks there's a likelihood that they'll increase in dividend dividends already pretty robust. And 3.5 percent GE shares are selling at about nineteen dollars a share today. And then the second pick was -- HSY. Perky -- sales are Hershey stock is selling 67 dollars. And 54 cents a share with the 2.2 percent dividend.