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Companies have reduced the payout ratio without growing earnings sufficiently to compensate.
He seeks companies with steadily growing earnings and solid finances, emphasizing two criteria.
"I keep looking to tech stocks that are either producing growing earnings, or ones that are stupid cheap," he said.
Contrary to other generators, International Power seems to have stable profit from operations and growing earnings per share here on.
He added, "This risk is heightened by growing earnings inequality in many countries, which will feed through into greater inequality in retirement".
"They've got a very strong track record of growing earnings in excess of 20percentt," said Edward Atorino, an analyst at Wasserstein Perella Securities.
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"Consequently, we believe CA could face challenges growing earnings-per-share above the mid-teens and expect shares to remain range-bound as a result".
Burger King's owners grew earnings, he said, "by cutting expenses.
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".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com