Market Wrap-Up for Apr.25 (AAPL, CAT, LO, BA, HOG, TUP, more)

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Earnings news once again dominated the financial headlines today, with negative economic data signaling a potential slowdown taking a back seat.

Today's durable goods order number was the weakest we've seen in the last three years. Any sign of economic contraction tends to get Wall Street buzzing about further Federal Reserve accommodation (printing more money). We did hear the from Federal Reserve chairman Ben Bernanke even mention having negative fed funds rates if possible. This will add to the pressure facing those who are sitting in cash or low-interest rate investments (CDs, savings/money market accounts).

Looking at today's list of earnings winners, we saw share price gains for the likes of Tupperware ( TUP ), Harley-Davidson ( HOG ), Norfolk Southern ( NSC ), Boeing ( BA ), and GNC Holdings ( GNC ). On the flip side, stocks like C.H. Robinson Worldwide ( CHRW ), Hess Corp ( HES ), Lorillard ( LO ), Dr. Pepper Snapple Group ( DPS ), General Dynamics ( GD ), and Caterpillar ( CAT ).

Finally, shares of Apple ( AAPL ) ripped higher after the company easily beat their earnings estimates. The company did guide a bit lower for the next quarter, but that hasn't stopped analysts from outdoing each other with higher and higher price targets for the tech giant. We are still waiting for the company to officially declare its first dividend dates (its initial dividend payout is estimated for July of this year).

Rare "Sell" Call Issued

We removed one of our best dividend stocks from our recommended list today, and told subscribers we recommend trimming the shares from their portfolio. Find out which one of the stocks we removed and why right here .

Busy in the Lab

We continue to focus as deeply as possible for potential new candidates to add to our Best Dividend Stocks List . There are plenty of potential prospects currently on our radar, so be assured we will send out an e-mail alert if and when new names are slated to become recommendations (or current names need be put to the side). We'll keep all our Dividend.com Premium subscribers posted.

Stick to the Plan

Most investors start out on the right foot. They intend only to put their money in quality investments that will throw off positive cash flow and produce income for the long term. Problems inevitably arise, however, when investors seek faster results and look to high risk/high reward options like day trading. As I've said many times, the odds of making money consistently in day trading is worse than those at your average casino, where we all know the odds are stacked firmly against the players.

Thus, many investors take a detour on their path to wealth. They never intend to day trade, but they turn on business television and see a pundit screaming about a stock that can double in the next 12-18 months. As human nature would have it, curiosity starts to build. Maybe the investor takes a small taste of a speculative or volatile stock, and the name actually starts to move just as the pundit said it would. The investor is hooked. Now what's the next hot name to latch onto?

Fast forward a year or two later. Compare the manic trading strategy with the original investment plan. A clear split has occurred. And odds are, the trader has now likely lost money, and more importantly, time. If you can not avoid the temptation of chasing the next hot name, make a pact with yourself to limit the amount of capital you risk. Make sure that small amount will not cause your portfolio to sustain long-term damage. Of course, the best course is to avoid chasing the hot money in the first place.

Being Too Safe Doesn't Make You Much

When I talk to older investors, I often hear that they don't want to risk losing any of their principal investments. Yet these same folks are sometimes willing to risk day trading just a "tiny" portion of their portfolio (as they like to put it).

We'd all love to have a 100% assurance that everything we attempt in life will work out. Sometimes you can find those assurances, but usually with the caveat that your returns will be severely limited. An average 5-year CD (as of today's latest data from Bankrate.com) will pay you a paltry 1.48% guaranteed every year (before taxes/inflation). Thanks, but I'll take my chances researching some of the best companies in the world, seeking much better returns from the magical combination of dividends and capital gains.

An Important Note Regarding the Best Dividend Stocks List

We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.

And here's one last thing to remember about what we do here at Dividend.com: it's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!

Our Beat The Markets with Dividend Stocks eBook Has Arrived!

We just debuted our brand new 275-page eBook, exclusively on Dividend.com! In this digital-only book, we look ahead to 2012 and the main factors that could affect dividend investors. A $39.95 value, the eBook is a free download for paid Dividend.com Premium subscribers.

Beat The Markets with Dividend Stocks contains a full economic forecast for 2012, including in-depth analysis on 65 of the biggest dividend stocks out there. It's a great way to get prepared for your investing next year! So head over to the Dividend.com Premium homepage now to download your copy.

A Dividend Capture Strategy for Active Investors

We now offer complete U.S. dividend data for all Dividend.com Premium members, so anyone that focuses on "Dividend Capture" trading strategies should have plenty of good stuff to research each day. Just check our enhanced Ex-Dividend Calendar , which is the best in the business, to search for upcoming payouts.

Speaking of dividend capture, Dividend.com Premium members can also access a 9-page report we published on the essential elements to any successful dividend capture strategy. Be sure to check it out here on the Premium homepage .

Dividend.com's Very Own National TV Commercial Has Debuted

Our first-ever television commercial! has started running on CNBC and the feedback has been wonderful. If you haven't seen the link yet, you can check out our commercial here .

Thanks for reading everybody. 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 .



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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: AAPL , BA , CAT , CHRW , DPS

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