As last-minute tax filers scrambled to get their paperwork
completed, the markets were racing higher with a decent smattering
of earnings leading today's headlines.
Early earnings winner today included Coca-Cola (
read their full report here
) and Comerica (
). Goldman Sachs (
announced a dividend hike this morning,
traded slightly lower following its earnings release.
Pharmaceutical giant Johnson & Johnson (
), who also
reported earnings, ended with a slight gain
Omnicom Media (
) dipped following
the company's earnings results.
Meanwhile, Wall Street analyst upgrades helped push stocks like EOG
), Citigroup (
), and M&T Bank (
Earnings Season Can Get Tricky (Especially for Traders)
One of our recommended names, Mattel (
) got hit on
their earnings news yesterday
and the stock sold off, prompting several subscribers to reach out
asking whether we have changed our opinion on the share. While the
company's revenue growth was nothing to get excited about, the
stock is still an attractive prospect for income investors as the
yield hovers around the 4% level.
If you are buying dividend stocks to get in and out of quickly
(which we don't recommend), my advice is to avoid doing much
trading around earnings season. This season tends to be the most
volatile time for stock price action - and where traders tend to
see some of their biggest losses. Again, we look at quality
dividend stocks as long-term income-producing assets. We will
change our opinion when warranted, but again, if we do take names
off our recommended list, it means the stock is a "Hold," meaning
we would not put any new capital in the stock.
For Mattel, we still like the shares and are keeping it on the
recommended list at this time. If we do make any changes to our
recommendations, we will certainly alert our premium subscribers
whenever we take such action.
I received a letter the other day from a local realtor who
stated that ALL of the listings in my area are under contract and
that they needed new listings for prospective buyers. My local
realtor contacts assured me this claim the furthest from the truth,
so how about that approach in trying to get listings?
It's too bad that the initial contact made by this realtor is
based on misinformation. Listings are gold in real estate, but so
is integrity. Residential real estate, whether we like it or not,
will continue to be pushed down our throats as a great investment.
I continue to look at it as choosing a place where you want to live
(and hopefully afford) and if the value of the property rises in
any significant way, that's great, but I wouldn't expect much.
Now if I was living in New York City or Silicon Valley, I may
take a different viewpoint when it comes to investing in
condos/apartments/single family homes. We have seen some crazy
price moves in those areas, and if you time things right, there is
a chance to make some money. However, if your timing is off you
need to sell? Look out below.
I am sometimes asked what I would be buying if I wanted to build
some real estate exposure. I personally don't own any
income-producing real estate property, but I certainly believe it
can be a great investment if you do your homework. Growing up, I
was surrounded by relatives that only believed in buying real
estate that produced income. Many of them purchased properties
where the tenants would cover their overhead expenses (2-3 family
homes, and even bigger multi-unit buildings as well). Now you need
to develop a knack for dealing with tenants and that is never easy,
regardless of how easy the "get rich in real estate" courses will
tell you it is.
I always tell people that it pays to be handy or have someone in
the family that can help save you money when things break, and with
tenants, you can always count on some issues popping up in time.
Investors need to look at residential real estate in most areas as
a place to raise their family first and foremost, and then as a
place where their money could be parked with hopes that your
principal investment can be recovered upon a sale when you decide
to move, and again, if prices rise in your area, that's a
Ask anyone who has owned a home for a few years and they will
tell you that carrying costs are usually higher than one budgets
for. There are tax benefits of course to owning real estate, but it
may not matter much if the bottom line expenses still overwhelm the
property owner. Real estate is tricky as an investment, so before
you jump in, do a lot of homework first.
That's Not How We Do Things Around Here
Red Sox fans got their taste of life with Bobby Valentine as
their new manager recently. Being a Met fan, I remember how Bobby
Valentine (former Mets manager) could sometimes get under a
player's skin, but whether they liked him or not, the team raised
their level of play and made it to the World Series in 2000 with
what many Met fans would recall as a pretty pathetic lineup.
Fast forward to 2012 and this past weekend and Bobby Valentine
questioned whether one of the team's most popular players (Kevin
Youkilis) was emotionally and physically into the game as much as
he has been in the past. The Red Sox team, led by captain Dustin
Pedroia, quickly came to Kevin Youkilis's defense and issued a
verbal message that "this is not how things are done up in Boston"
(i.e. a manager calling out a player in the media).
Not to cause too much of a fuss, Bobby Valentine apologized for
the remark he made and felt it may have been taken out of context.
Again, having been a met fan and seeing Bobby Valentine work his
magic with a scrappy Met team, Dustin Pedroia may want to re-think
how things get done in Boston, especially since the team hasn't won
a championship since 2007.
If a leader can not ask for accountability on occasion
(especially if a certain team member is not performing up to task),
then an organization will most likely be doomed to failure over
time. Will the Red Sox as a team respond? That answer remains to be
seen, but some one had to at least point out why the results
haven't been stellar so far.
Whether we look at a business we own or even our own family
household, there is almost never an exact "right" time time to
point out the flaws in the system. An occasional reminder of the
high level of performance to be expected is usually a good idea,
Income, Income, Income
At Dividend.com, we maintain our focus on the best
income-producing investments the markets have to offer during time
of heightened volatility. We want to make sure we have only the
most pullback-resistant names on our
Best Dividend Stocks List
. Also, if we see the market putting in what looks like a decent
bottom, we will be prepared to scale up the list of stocks we like.
Stay tuned and be sure to look for
member alerts along the way. Don't count on the government or your
employer to set you up for a remarkable retirement. Take control,
do your own research, and achieve your goals yourself!
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