Market Wrap-Up for Apr.27 (JNJ, CTL, MCO, DPS, BRCM, SWK, more)

By
A A A
Share |

Anyone still insisting on fighting the Fed will be out of capital (i.e. shorting equities or commodities) in no time. Ben Bernanke's comments following the non-rate move all but laid out the current environment of a weak dollar will continue. Stocks and metal prices spiked following the comments.

Two big M&A deals were announced this morning with both Johnson & Johnson ( JNJ ) and CenturyLink ( CTL ) initially pulling back, but rebounding toward the end of the day. These are two of our former recommendations that we are still watching closely. CTL has a 7% dividend yield, and we are concerned the current dividend payout could be at risk following news of this morning's acquisition. The company reports next week, so we'll be seeing if there are any updates from managements.

Elsewhere, earnings were front and center. Winners included Moody's ( MCO ), Wellpoint ( WLP ), Tupperware ( TUP ) and Dr. Pepper Snapple ( DPS ). On the flip side, sellers hit shares of Broadcom ( BRCM ), Rockwell Automation ( ROK ), National Oilwell Varco ( NOV ), Parker-Hannifin ( PH ), and Stanley Black & Decker ( SWK ).

We added a new name to our recommended list, so be sure to check out the post if you did not read the e-mail alert we sent out today. Also, check out the big number of dividend hikes reported yesterday in this post .

The common theory you hear all the time with money is that it takes money to make money. While essentially true, many make the mistake of assuming the people that have money all started with a big sum. That's not the case. The majority of us will build our fortunes from a small starting amount.

I have seen through the years the amount of pride individuals who have built their own riches display. There is no hoopla, but just real advice to be gleaned from years of experience. From a satisfaction standpoint, it means a lot to anyone who builds something from the ground up. One of my older Italian uncles would often show us buildings he helped build whenever we were in the car driving. The pride he would have in his face was unforgettable. The language barrier didn't stop him from becoming successful with the skill-set he possessed. You can apply this same concept to investing, knowing that every one of us possess the skills needed to build dividend wealth - as long as we stay consistent with our efforts.

One area I see investors roll the dice in too often is their IRA account. Too often we see investors experiment with the capital they first put in ($5K a year is the normal contribution limit unless you are over 50 years of age, which you can then fund an IRA with $6K a year). Money you lose in an IRA is a total loss, as you can not write off tax losses in an IRA account.

You will often hear me mention compound interest as the biggest weapon we dividend investors have at our disposal. Just look at the example of some one who has not invested a dime yet and just turned 55 years of age: if they follow the dividend investing discipline we talk about on Dividend.com, they can start investing $5K a year at age 55, and by the time they reach 75 years of age, their $100K invested over 20 years will be worth over $800K (based on historic dividend annual returns of 11% a year (stock price appreciation + dividends reinvested)). The market has been acting very well the last couple of years, and the returns we have been seeing for our Best Dividend Stocks List continue to justify the efforts we make at Dividend.com on a daily basis.

Many of our readers truly have put into practice my message of taking charge of your own nest egg. All you need is an online brokerage account, the discipline to save money and deposit it into the account (automating this process works best), and the right research to help guide you when it's time to put that money to work. I will continue to repeat myself because it is so true: no one will ever care more about your money and financial well-being than YOU!

As I sat around with my relatives this past Easter, I told them the same thing I say in this daily newsletter. The key to being wealthy is buying assets that produce income (dividend-paying stocks, multi-family real estate, owning businesses, and investing in the skills (education) you need to move up the corporate ladder). On the note of investing in yourself, even if you are out of college, you need to keep your skills as sharp and up-to-date as ever. Don't stop learning, ever!

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 as well as being kept in the financial news loop that could affect them. 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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: BRCM , DPS , MCO , NOV , PH

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

Most Active by Volume

112,007,213
  • $14.79 ▼ 2.12%
79,492,830
  • $17.05 ▲ 0.24%
63,236,947
  • $56.63 ▲ 7.54%
55,553,482
  • $3.41 ▼ 3.94%
53,662,885
  • $14.19 ▼ 3.47%
52,606,858
  • $100.75 ▲ 0.64%
39,074,810
  • $4.84 ▼ 2.22%
38,681,912
  • $25.62 ▲ 0.79%
As of 9/30/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com