More bad news out of Japan this morning on the country's
escalating nuclear crisis certainly put a damper on the markets
early on, with buyers deciding to stay away for pretty much the
duration of the day. Again, we urge investors to use extreme
caution if one is considering any Japan-based investments. The Wall
Street pundits were too quick to call for a "buying opportunity" in
the region in our opinion. This is a country whose economic
situation was not good before the earthquake/tsunami struck, so a
recovery will likely take a long time and include several
Looking at our markets here, we recognize the potential for
selling and have made some adjustments to our
"Best Dividend Stocks" List
. Please check out the link below if you did not read the e-mail
alert we sent out earlier, showing which four names were removed
from our recommended list.
Getting into some of today's winners and losers, Alcoa (
) didn't exactly kick off earnings season in style last night, and
the stock sold off on the results (down 6% by the close).
Elsewhere, Wall Street downgrades were felt a bit harder in today's
action. Specifically, shares of Abercrombie & Fitch (
), CSX Corp (
), and Sony (
) all traded down. You know the tape is soft when upgrades were
buckling as well. One of the names we have liked Time Warner Cable
) saw some red despite an analyst raising estimates. Lastly,
Procter & Gamble (
) bucked the selling on news the company has raised its dividend
payout by 9%. This latest increase marks the 55th consecutive year
the company has raised its dividend payout.
It's amazing how often I run into someone that is caught in some
kind of rut. It's not usually one thing, but it seems almost
everything in their life is all tangled up. What people fail to
realize is that the mindset can change how you see your present
situation. If a person doesn't discover what makes them want to
become more successful, they will likely struggle in various
aspects of their lives. Having goals and dreams is the motivating
factor that should start the push out of one's rut. Every person
has the ability to become a special talent in their own way. Most
people aren't born with rare talents, but instead hone their skills
throughout one's lifetime. For some people it takes time to find
what they are talented at, while some accept the judgment of others
they are not ever going to amount to much in life.
I look at my life and my experiences and can recall many times I
could have just stayed in what I was doing and accepted my role in
the working world, but I challenged myself to make things happen.
When it came to learning everything I know about the markets, I
taught myself. Every evening I read and followed the markets. I
developed different strategies and figured out different formulas
on how the markets would react to different events. I studied the
history of many individual stocks, read almost every book I could
find on the markets. Every financial magazine I would subscribe to.
I threw myself into the world of the markets entirely, knowing the
returns of my studying could be immense and alter the course of my
life. Here I was already doing well as an entrepreneur (owning a
family food business at age 23), but I was not satisfied with just
accomplishing that. I knew I had to learn the one key thing that
many wealthy people would often talk about in books. That was to
make your money work for you. You need to own assets that produce
income. Owning your own home is technically not an asset when you
think of it in that sense, but it is for many the source of their
entire nest egg. Instead, you need to develop income streams to
begin to see your net worth increase substantially.
The best ways to start that today in my opinion and based on the
data we have seen results from the last 80 plus years is in quality
dividend-paying stocks. I can't stress enough the power of compound
interest. You take a small amount of money and turn it into a large
amount over time. Patience and consistency is required, but we all
need to begin practicing some discipline if we are going to get the
financial ship headed in the right direction.
Think about buying up assets as the rich & wealthy do. My
favorite assets are dividend-paying stocks and if you can find a
good deal, real estate that throws off positive cash flow
(multi-family buildings - especially if you can buy your first ever
property and you live in one of the units, with tenants covering
your expenses). I mention real estate because it is an area that we
all deal with in our lives. But like we do with our dividend stock
ratings system, you need to make sure any real estate you buy is
indeed an asset and can truly throw off positive cash flow. Don't
ever force a purchase based on potential. Numbers are the clear
facts and if you don't see them now, why pay up for potential. If
you decide to never buy real estate (as some people have sworn off
they will never do - after the real estate bubble popped), I want
you to consider saving 2-3 times what you normally would and get
that money into quality dividend-paying stocks so you at least get
the asset income stream maximized as much as possible.
This is how the wealthy build their nest egg. There's no reason
that we all can't follow this simple to understand strategy. We do
all the homework for you when it comes to finding the best dividend
stocks for your money now. It's up to you to take it from
I had a great time on Mark Cope's show last night in Dallas.
Tomorrow morning, I will be on "DayBreak USA" with Scott West live
from 8:35 am - 8:45 am Est. The show is part of the USA Radio
Thanks for reading, and I'll see you tomorrow! P.S. Please pass
this e-mail on to someone you think can use some financial
motivation. Thanks again!
P.S. Please keep the Amazon.com book reviews coming for my
"Be a Dividend Millionaire"
. If you haven't gotten a chance to check out the book yet, please
do so. Whether you're a new investor or a seasoned veteran, there's
tons of easy-to-understand investing wisdom to draw from in there.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
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