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Companies face a question of how to grow, and consolidation is a way to grow earnings".
Picking cheap companies with an ability to grow earnings will become all the more important.
This should allow it to grow earnings and enhance its already generous dividend".
"Longer term, their key challenge will be to grow earnings through strong sales and volume growth".
Over the next five years, they are likely to grow earnings an average of 14 to 15percentt.
And there are a handful of companies that are well positioned to grow earnings at a low double-digit rate.
"It's important in this scenario to buy dividend-paying stocks, because the ways that companies can grow earnings are limited," he said.
"It's not an easy environment in which to make money, but companies are finding ways in which to hold costs in line and grow earnings".
On its conference call, the company admitted that 2014 will be the first time in a decade that it will fail to grow earnings.
"Investors are crowding into shares of the companies that they believe will continue to grow earnings, despite the Fed's tightening of interest rates," Mr. Acuff said.
He added, "It is going to be very difficult for Schwab to grow earnings at the same pace it did in the past".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com