Updated
Updated · CNBC · Aug 24
ClearBridge's Clarfeld Backs 3 Dividend Stocks as S&P 500 Holds Near 7,799
Updated
Updated · CNBC · Aug 24

ClearBridge's Clarfeld Backs 3 Dividend Stocks as S&P 500 Holds Near 7,799

1 articles · Updated · CNBC · Aug 24

Summary

  • Michael Clarfeld said investors fixated on AI are missing dividend-paying "overlooked gems," highlighting Williams Companies, Unilever and ADP as attractive diversification plays.
  • The call comes as a narrow, mega-cap tech-led market keeps the S&P 500 near records—7,798.99 on Aug. 13—even after a volatile summer driven by AI spending swings and a 30-year Treasury yield that hit a 19-year high last week.
  • Williams, yielding 2.98%, is Clarfeld's favored "pedestrian" pick because rising natural-gas infrastructure demand and data-center power needs support long-term earnings and cash-flow growth; the stock is up about 18% this year.
  • Unilever, with a 3.46% yield, stands out for robust organic volume growth in a tough consumer-staples market, while ADP yields 2.42% and is seen as relatively insulated from AI disruption because payroll processing remains mission-critical.
  • Clarfeld is not calling for an immediate exit from tech, but argues that historically narrow momentum markets often give way to broader participation, a backdrop in which dividend-growth portfolios tend to perform better.

Insights

Are extreme market concentrations in mega-cap tech masking a fragile rally that leaves dividend-growth stocks poised for a massive comeback?
While investors chase flashy AI startups, are traditional payroll and consumer giants quietly using the exact same tech to become untouchable?
Could the massive energy demands of AI data centers make traditional pipeline operators the ultimate hidden winners of the tech boom?