The stock market had been running higher early in the day, but
the reality of a weak existing home sales market eventually spooked
some investors to the sidelines by the close. Corporate earning
once again took center stage.
Looking at the list of stocks running higher on the back of
their earnings results, were names like Peabody Energy (
), Marriott International (
), Travelers (
), UnitedHealth Group (
), PPG Industries (
), and Verizon (
). Of these names, coal producer BTU may be nothing more than a
"dead-cat" bounce, with the stock hovering right around 52-week
On the flip side, investors did some selling in names like
Stanley Black & Decker (
), Nucor (
), Qualcomm (
), Yum Brands (
), Union Pacific (
), and Phillip Morris International (
). Much of the selling in stocks like YUM, UNP, and PM can be
likely related to the recent run the stocks have been on. QCOM and
SWK, to a lesser degree. Nucor is interesting, as its yield is
around 3%, but commodity stocks are not hesitant to cut their
dividend payouts at the first sign of trouble, making us a bit more
careful when considering the sector for recommendations.
If you haven't seen them yet, we published a plethora of
articles this morning covering all the recent big-name earnings
reports. Here are some highlights:
For more breaking news and earnings reports, check out our main
The Dividend Daily.
Where Will Your Retirement Income Come From?
U.S. News and World Report recently penned a piece about the
various sources of retirement income. The article included
interesting and eye-opening data supporting the need for
individuals to get started looking for income-producing assets
sooner, rather than later.
The majority of retirees (65 percent) get half or more of their
income from Social Security. And over a third (36 percent) of
people age 65 and older receive at least 90 percent of their income
as a monthly Social Security payment. We have talked about this
trend in the past, and how the amount received from the social
security program does little to ensure any decent financial comfort
level in one's later years.
Some current retirees still have access to private pensions or
annuities (27 percent) or public pensions (15 percent), like those
provided by the military or federal, state, or local government.
The median pension received by those age 65 and older was worth
$12,700 in 2010. Former government employees' pensions net a higher
annual average of $20,000. With many more companies tightening the
strings on fixed costs, pensions as a retirement option are slowly
disappearing, pushing the focus of retirement income back toward
As far as older people who are continuing to work, the latest
data shows that just over a quarter (26 percent) of Americans age
65 and older held a paid job or were self-employed in 2010.
However, the average annual earnings for those 65 and older who
continued to work was $28,000. This total isn't exactly a large
amount, but when one has little savings/investments to fall back
on, continuing to work becomes a must. Older folks must also bet on
their health holding up in order to continue to work, which
unfortunately isn't possible for a number of people.
Lastly, when it comes to income from assets, just about half of
seniors (49 percent) received interest from assets held in bonds,
treasury notes, IRAs, certificates of deposit, and interest-bearing
savings and checking accounts in 2010, while only 19 percent of
retirees received dividend payments from stock holdings and mutual
fund shares. Real estate property income came in near the 9 percent
level. It may be a bit harder to keep up with tenants' demands as
one gets older, so I'm not surprised that real estate is not a huge
factor for retirement income. Obviously, there is definitely room
to grow in the dividend income area, especially with record-low
interest rates continuing to deplete many savers' holdings.
With inflation always pecking away at your buying power, you
need to go beyond the "safety" of essentially zero returns in the
banking options mentioned above. Quality dividend plays are able to
continue to grow profits in times of higher inflation, and then
pass them on to shareholders, allowing many to keep up with
inflation. Whether you are of retirement age or not, you must
consider this information pertinent to planning your future income
Don't Run out of Money
I often get asked about the best ways people can maintain their
current lifestyle when as they approach retirement. The big thing
to remember later in life is to never put yourself in a position
where you have to roll the dice in order to make ends meet. You
need a fairly conservative investing and spending plan.
Getting into a habit of buying income-producing assets is
critical. Try to generate as many sources of income as possible,
whether through dividend stock investing, real estate with positive
cash flow, and perhaps the idea of "buying a job" if you need even
more. "Buying a job" refers to working for yourself if your health
allows it (and even if you have physical restraints you will have
options). You can consider buying a franchise business, which many
older individuals have shown tremendous interest in. Recent data
from those attending franchise expos show those 50 and older make
up nearly 25% of the audience.
Of course, buying a franchise means financial hoops to jump
through. Generally speaking, the more established the franchise,
the more money in terms of a down payment you'll be expected to
come up with. Just a simple Google search for "franchise
opportunities" will present you with plenty of information to chew
With the employment situation being as tricky as it has ever
been, the idea of "buying a job" isn't as peculiar as it may sound.
You can file this strategy under "investing in yourself." Just make
sure you are prepared to work hard, and do your homework before
jumping into anything. Finally, factor on building your nest egg to
a point where you can either pass the business on to someone in the
family or sell it outright.
So as you get older, the number one rule to remember is not to
run out of money. Plan wisely and bet on living a lot longer than
you think. Stay as active as you can, and don't get too caught up
in the endless media coverage of every little movement in the
New MLP Report Just Released!
The Essentials of Investing in MLPs
, we outline the do's and don'ts of investing in high-yield Master
Limited Partnerships (MLPs). Our exclusive new MLP report outlines
everything you need to know about these popular high-yield
- Understanding their unique company structure
- What you absolutely need to know about their special tax
- Why MLPs may not be suitable for retirement accounts
- How to find the best high-yield partnerships
- …and much more!
Head to the
page to download this brand new report today!
25 Years of Dividend-Increasing Stocks
We recently updated our list of dividend stocks that have been
paying out dividends for 25 years or more. Be sure to check out
the latest list of names here
Dividends Really Matter
Financial blog DailyReckoning.com recently took a look at the
difference dividend payouts made in the overall return investors
saw throughout the prior decades. Here are some of the
- The Nasdaq is down 28% since the end of 1999. Even the "blue
chip" S&P 500 stocks are down 15% during that time frame…until
you add back those "boring" dividends. With dividends included, the
S&P 500′s 15% loss flips to a 6% gain.
- Without dividends, the S&P 500 index would have produced a
loss for the 25 long years from August 1929 to August 1954. Then
again, without dividends, the S&P 500 produced a 5% loss during
the 13 years from September 1961 to September 1974. But with
dividends included, the S&P's loss became a 46% gain.
- Over the course of the last half-century, dividends have
contributed more than half of the stock market's total return -
56%, to be exact.
Of course, you can't discuss the potency of dividend investing
without making mention of how awesome compound returns are. 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. Finding
the right companies at the right price points which not only grow
earnings, but also grow their dividend payouts as well!
New Watchlist Article Out Today
Be sure to check out our weekly Top 50 High-Yield Watchlist
Names post that is out today, exclusively for
members. This list gives readers a good idea of what stocks we're
watching behind the scenes here for potential upgrades.
Go Beyond This Newsletter
We know many of you enjoy reading the daily newsletter, but
remember that with our
service, the newsletter is just one small component of what we
offer. Here are the "Big Three" benefits of our Premium
Best Dividend Stocks List
is used by tens of thousands of investors to help build their own
- Creating your own
allows you to track the performance, news, and upcoming dividend
payouts of the particular stocks you care about.
- Finally, we offer the most complete and easy-to-use dividend
data on the web. Many subscribers use this data as part of a
"Dividend Capture" trading strategy, but long-term investors can
use it to keep track of impending payouts. Just visit our
for a complete outlook on which companies will be paying out
We don't ask for a credit card to use our free trial, and we
don't bill you when your trial ends. No obligation whatsoever! So
keep enjoying the newsletter, but please give
a shot if you haven't already subscribed!
Thanks for reading, and I'll see you tomorrow!
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com