democratic revolution possible. that is for us, the leadership update, follow me on twitter, instagram, i'll be up next week with mark and up-to-date interviews. thank you for joining us. ♪ "barron's roundtable" sponsored, very mellow ways and other companies new health talk and price of prescription drug. billion dollar company sitting on piles of cash how barron's exclusive analysis. edward jones chief with her recession quiz. anbarron's"barron'sroundtable" . >> welcome to "barron's roundtable" with the sharpest minds on wall street get behind the headlines and prepare you for the week ahead. i am jack otter.

we began with the three most reported things investor should think about right now. mcdonald's facing a menu of challenges after the ceo had an out. what's next for the giant. how is transforming into a software company and not focusing on the industrial internet of things. worn buffet workshare hathaway sitting on a record cash word and not the only one, he is an exclusive analysis on the "barron's roundtable", my colleagues. the market capped off another week of gains, that is five straight to a new record high. but investors know the market does not always know it goes straight up and one of the things and bad times is the quarterly payments known as dividends. so one of our writers took an exclusive look at some of the

companies that we think are getting a little stingy. >> correct, there are 78 stocks in the s&p 500 that don't pay a dividend in many of them arguably should. you mentioned berkshire hathaway, that one is large because worn buffet is sitting on $128 billion of cash as of his latest report. and he has often said he has held in cash and looking for an elephant -sized acquisition and the elephants are escaping in the cash word is building. so could he pay a little dividend, kitty paid up big would arguably. >> his ability to put cash to smart use. he could pay investors and still have an awful lot of money left over. i wonder if this is not a postwar and plan where the market will be very worried when he goes on ahead, do you think they're waiting for that moment to start paying investors? >> i don't know that it's certainly possible that

investors could see a dividend in the post era. let's hope that does not happen. >> of course not. what do you think, should these comedies pay dividends? >> a lot is arrogance. stocks go higher, many companies have good returns and unfairness somehow good project that they can spend the money on but if the market stopped rising in the next downturn, investors will start saying hold on, you're sitting on this cash, we should put some of that in my pocket. you'll see more dividends initiated when the next downturn hits the market. >> a few more companies we think might have the capability to pay investors. >> alphabet, amazon, facebook, united airlines does not pay dividend the only major inland that does not. >> not a great business for joining cash but if delta and the others do you think it might want to. >> at some point it might. right now they have a lot of debt and focused on that but alphabet, amazon and facebook has a ton of cash in dividends might be in the picture one day.

>> mcdonald's has a healthy dividend but to extend the metaphor farther has a minor scandal on his plate. >> the chief was ousted for consensual relationship with a subordinate in the issue is, for investors, here's a guy has stock over the past five years you made over 134%, that is almost exactly doubled what you could've done in the s&p 500. so he had to go, why he could not find romance over at wendy's, i don't know. you have a new chief and says i'll stick with what is working. so fine, but at the same time there have been some headwinds starting to fall, some cracks that the same store sales growth has decelerated in the projection have come down just a little bit and it seems a little expensive and about 25 times earnings and a has been underperforming just a touch even before the scandal hit.

so for investors saying is this a buying opportunity, maybe a one-time think it'll pass, all by here, i think you could wait for a better price or wait for better results. >> i need to get to you, you have spent time traveling, you are in charlotte, north carolina, phoenix, arizona and even manhattan. tell us about the story you worked on? >> i become a little bit obsessed with the internet of things and trying to figure out how companies can make money from all the data coming off with connected assets. i think i found one, honeywell is making a big push into the industrial and trying to sell software to existing customers, it has good traction so i think i might have found one that might take a digital strategy that everyone talks about and turns it into money. >> can you explain what the internet of things is and how it relates to company. >> all of these devices that we connect to the internet and computing power and storage and

the ability to consult the data is unconstrained so company takes it in a couple of examples and always made for employees and try to take that to the next level like sports stars where they can do body temperature and exertion levels to try and take safety to the next level. in a more normal or easily understandable example, an airline, there's very complicated route planning and with a.i. and some of the products that honeywell is trying to sell, they can save an airline up to 2%. it does not sound like much but airline spent hundreds of billions of dollars around the world each year on fuel. >> that is interesting because the whole country is doing the same thing, moving from making things to using software, their integrating nicely. >> pennington the largest investment firms in america on the next recession and how to prepare your portfolio.

cvs ceo on how the pharmacy giant is working to lower the cost for prescription medicine. that is next. >> one of the things we been able to do is take your benefit design and put it into the positionphysician's office. the average savings for the consumer is $90 prescription ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ do you recall, not long ago ♪ we would walk on the sidewalk ♪

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>> cvs is not just a place to pick up prescriptions and a pack of gum. it has a hand in a most all aspects of healthcare. it offers an increasing array of medical services and the distribution of drugs to the pharmacy benefits manager. larry joins me now, thank you so much for coming in.

you had earnings that pleased investors early this week, your stock popped because of be on sales and earnings as wall street expected. one of the drivers are your growth? >> great momentum in the business and as you look at our business segments, all of our business performed very well. we see strong revenue growth and not supported by strong bottom-line performance. really pleased with the business and outlook as we go forward. >> in the early days you healt launched health hubs and they offer a lot more than flu shots. can you expand what they are and why you see this the future of healthcare? >> we see the retail health consumer, more consumerism in healthcare than ever before. they need to meet people where they are around their health needs and communities in the home to many in the palm of your hand. it's a community destination

where it's not just about convenient health or beauty or personal care items, it's about health related services, the nurse practitioner, the role of the pharmacist and how much more they can do beyond the expense of your prescription and other health related services that can help people on a better path to the health. >> seeking get test of glucose, yoga and so forth, why will this be better for patients in your view and how will it bring a cost? >> we look at the challenges that we face today goes back to the point about consumerism and healthcare. our belief is engaging people about their health and making health part of the regular routine in meeting people where they are. the right products and services, we can improve health outcomes and that improves over healthcare costs. two thirds of americans have diseases in those chronic diseases that account for 70% to 80% of cost. we know those individuals are not achieving the best health

outcome. we can make a difference. >> amazon bought nonprescription startup, do you worry that the next business jeff bezos disrupts will be your. >> we think a lot about how we make sure we don't leave white space to be disrupted by others. we've done a lot of innovative activities and innovation in our dna and when you think about a consumer who loves to shop the brick-and-mortar drugstore but we can deliver to patient homes, mailbox, those are all the things that we've been working on, we have a simple dose where we can deliver prescriptions for the very high utilizing. were working hard not to allow others to disrupt our business model. >> obviously one of the things you do is contain cost. can you explain why you think that's a better way to do it than the government pays for everything system. >> you look today, a lot of the policy debates we see taken ways

before us are focused on access to coverage. we believe there is an important item that is not getting a nearly enough discussion and that the focus on outcomes. that's what our business model is really driving, back to the notion of getting consumers more engaged in their health and that will help improve health outcomes in doing so reduce overall healthcare costs, the private sector plays an important role in enabling all of that and that is our strategy and are focused in the early returns are it's working. >> one more question, open enrollment and a lot of people think, i paid the insurance company and they come back and say they will not cover this. defend the insurance business in healthcare. >> you are talking about transparency and we been doing a lot of work in terms of how you make transparency actionable.

we talk about prescription drug prices, one thing we done is take your individual benefit design input into the physician office as part of your health record. what were seeing is being able to provide that information to the physician, they are switching the drug they were about to prescribe to a lower cost alternative, about 40% of the time in the average savings for the consumer is $90 prescription. those of the things were working on to make cost transparency actionable. >> putting opposition in the pan is probably pleasing. >> at the point that matters. and that makes drug pricing start with a physician is about to prescribe the prescription. >> thank you very much. coming up, our ideas on what you can do to improve your portfolio. edward jones managing partner in the spotlight, that is next. >> a fundamental part o part of.

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>> the hardest part of investing is not mental, it's emotional. they lead to bad decisions and a good financial visor will help you separate those impulses from money. our next guest overseas an army of 18000 financial visors and head of edward jones. the only woman to run a major brokerage. to join to make sense of the current market. let's start with the big picture, 30000 feet, ten years and, what your view of the market? >> nobody has repealed the business cycle. ten years is a long time, but fundamentals right now say we have a little more room, unemployment is at historic lows, we have low interest rates, probably not going to negatives is our view, companies are reporting good earnings. it's clear that corporate

earnings are curling over a little bit. we think fundamentals are quite strong. >> and employment is good and all that but the earnings you refer to is reflected in global growth, is the trade war playing into that? >> it could be in the trade war certainly plays into investors emotions which has an impact on the markets. >> a recent survey found that more than half of respondents felt there would be a recession in the next year, we did our own survey and a little more optimistic. what does edward jones do? >> first and foremost the business cycle is still with us and were going to expect a recession or a downturn sometime in the future, who knows whether lb tomorrow or two years from now. our investors and clients need to have their portfolios ready for that. and by having a well diversified

portfolio, stocks and bond and less risk assets. >> within that, each one is made specifically for that client, are there any tilt or anything your strategist see as undervalued or overvalued in making adjustments? >> before the show international is disappointed for a number of years. >> we believe there is opportunity there, good valuations, high levels of dividends, were advising a balance towards growth portfolio tab 50% to 35% in international large-cap equity. >> for most that is not the case, his home country biased and especially hard to do when they have not done very well. but that's what an advisor does. a good advisor will force you to

the counterintuitive things to buy what has not done well. >> exactly right. >> a lot of reviewers are skeptical of the value of a financial advisor. can you make the case why one should pay good money. >> sure. there's a number of research outlets in the past several years that have talked about the value of an advisor we know and advise client has a minimum of 25% more assets than uninvited clients. it gets right to what you were discussing earlier, good financial advisor helps you make decisions that remove your emotions from the market and the decisions you are making about your purple you in your financial future. >> a very interesting thing you discussed, that your advisors are doing, because of the way there working with clients and getting to know them over years, they can spot decline before other people can you explain what you're doing.

>> i was with the veteran financial advisor and he reminded me he works with the family he's been working with for five generations. what happens there we get to know our clients and we know how they think, we know how they behave and cognitive decline can start to show up many years before it's actually diagnosed. all held the association tell us that it shows up first in the checkbook. so often a financial advisor will stop that sometimes before a family wants to admit that it's there. we are actively training our financial advisors and the client service professionals to spot that and to have empathy, the emotional closure that it takes to have those very challenging conversations with the family. >> you have 18000 advisors and 68% of counties which gives you a reach the most companies. anything you see or hear on main street that most of us on the coast are missing? >> when i meet with clients

regularly, i'm hearing them say many of the same things that they've said for years. phrases like, is this time different, you know that phrase. there is no time that is different, every time feels urgent and frenetic about what is going on in the market and what going on with everything in the economy right now. >> thank you so much for coming in. up next roundtable members give their investment ideas for the coming week. coming week. stay right there. we work hard to make you happy. with the right combination of people and technology, so you can work with us the way you want. now with zero commissions on online stock, etf and options trades. part of our mission to make investing more accessible for all. and we're the only firm with a satisfaction guarantee. which is why our zero is better. schwab. a modern approach to wealth management.

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♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> investors are always looking for the secret spot that can help them find winning stocks. you write about morgan stanley

finding that could be free cash for. >> given it away, i thought you're going to have a dramatic buildup until people at the end, it's free cash flow. i think people who are frustrated who have been looking around for cheap stocks and is not working in nursing value investing is dead and mathematicians over it morgan stanley did the decades worth of stock found if you do it based on free cashel rather than earnings it's done quite well over the long time not short-term. >> so we should get example of stocks that fit the bill exhibit a will be cvs. you like that stock back in april, you recommended it and it's been a good call. >> it's a 40% since april and 7% for the market. it's been pretty cheap. these stores are just experimenting with expended healthcare services, their showing better results than

regular stores and they're going to rapidly build up. i want to see what that looks like and i want to see what that does for the bottom line. i want to stick with that stock. we've had free cashel and spending on dividends and buybacks and delta airlines, cisco. >> we want you to go to the coming week to make your next move. so give us one actual idea. lauren you like risk and networks. >> i'm a minority there, stock fell 25% in one day after the company gave guidance for the december quarter, inflamed or causing orders from the key customer. it seems for a pause that's a lot of money to lose. >> al, your idea. >> not a tech idea, i love ideas for aggressive traders, ethanol looks like it's ready to bounce. it jumped 11% after earnings, terrible numbers but things look like they're getting better so if you love complexity and government entry and commodities, check out rectum or

can resources. >> these benefit from the tray day. >> great ideas. thank you. to read more check out this addition aberrant stock, and follow us on twitter at barron's online. that is it for us. see you next week on "barron's roundtable". maria: happy weekend. welcome to the program that analyzes the week that was and helps position you for the week ahead. it's a special spotlight this weekend on entrepreneurs and startups. the co-founders of harry's talk about being major disrupters in the shaving business. strong economic data, and stronger trade news led to a breaking week for markets.