Market Wrap-Up for Aug.26 (GES, FCX, GS, COH, RL, more)

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Yesterday, Morgan Stanley released a report with a bullish slant toward dividend stocks. We all know how Wall Street works: certain investments become the flavor of the day, until something sexier comes along that starts a new investing trend.

That's no problem for us, as we don't mind always keeping our focus squarely on what's worked for more than 100 years: dividends. In contrast, investors that tend to chase the "church of what's working now" usually do well by their brokers when it comes to being active, generating commission dollars in the process. At least commission rates have come down immensely these days, but can you imagine the coin that used to be printed for brokers years back when commissions were $30 and in some cases over $100 per transaction, depending on the size?

Anyway, Morgan Stanley now sees companies returning more money to investors, with the appetite for acquisitions waning amid economic uncertainty. We are always arguing in favor of dividend raises, instead of the dreaded stock buybacks, which serve mainly to pad the pockets of top executives with massive stock options.

Looking at today's action, it was fairly subdued early on, but sellers did make an appearance in the afternoon. Guess ( GES ) got hit hard following the company's weaker-than-expected earnings guidance this morning. Freeport McMoran ( FCX ) and CF Industries ( CF ) were able to get back a sliver of the previous two days' mini-correction. The dividend yields for most of the momentum-style commodity plays are still not attractive for income-producing investors, so leave those names to the active traders who tend to look for volatility. Stocks that did get sold as the afternoon went on, included Goldman Sachs ( GS ) , Coach ( COH ) , and Polo Ralph Lauren ( RL ) .

I hope everyone is enjoying the new personal finance-style articles we're been publishing on the site. The aim is to help educate investors about finding ways to build and create wealth with money-saving ideas, tips, and more. It's time for us to stop worrying about Social Security and other soon-to-be outmoded retirement solutions, and instead create our own long-term income streams.

Be sure to check out our recently-updated Best Dividend Stocks list for our currently recommended dividend plays.

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: CF , COH , FCX , GES , GS , RL

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