Market Wrap-Up for Apr.12 (AA, PG, CSX, ANF, TWC, more)

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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 setbacks.

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 ( AA ) 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 ( ANF ), CSX Corp ( CSX ), and Sony ( SNE ) 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 ( TWC ) saw some red despite an analyst raising estimates. Lastly, Procter & Gamble ( PG ) 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 there.

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 Network.

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. Thanks again!

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AA , ANF , CSX , PG , SNE

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