It was a somewhat quiet but productive tape as far as the
averages go today. The Asian markets were strong overnight and
Europe held on to most of its gains as well.
Earnings were out in force and there are some winners we took
note of, including MasterCard (
), CME Group (
), Cummins Inc. (
), Qualcomm (
), and Kellogg (
Moving lower on earnings results were shares of Starwood Hotels
), Ameriprise (
), and Cigna (
). Monthly retail sales figures were out, but there are not too
many headline fireworks besides Abercrombie & Fitch (
) seeing shares getting hit hard following their update. Moving the
other way, The Gap Inc. (
) did post strong percentage gains following the company's
Pension Pressures Continue to Weigh on States
Recent data highlighted on Bloomberg showed the New Jersey state
pension fund, which holds $67.2 billion of assets, returned just
1.7% in 2011. According to treasury reports, New Jersey's pensions,
which cover government workers and teachers, had only 67.5 percent
of the assets needed to pay future benefits as of July 1, down from
70.5 percent a year earlier. With expected returns over 8 percent,
New Jersey governor Chris Christie took measures to close the gap,
including raising pension and healthcare expenses, increasing the
minimum retirement age for new employees to 65 from 62, and
freezing cost-of-living increases.
Personally, my fear is that states will assume higher risks in
order to achieve better returns. These risks could include
investing in hedge funds that deploy aggressive and leveraged
investment strategies that when mistimed, could result in even
bigger shortfalls for these pension funds.
In some cases, we've even seen municipalities offering lower
benefits to retired and near-retired due to poor fiscal
planning/investment returns. For these reasons (among many others),
it's vitally important that people take charge of their own
retirement in as many ways as possible. If you haven't already, I
highly suggest setting up and funding an IRA account with a major
online broker. This tax-advantaged account is one great way to help
ease the burden of retirement by diversifying your future income
Only After Tough Lessons are Learned…
It's amazing how often we'll hear from
subscribers that say they wish they'd found us years earlier. The
good thing is that they eventually did find us, but dividend
investing is a bit like learning how to eat better. It tends to
attract people after they have had some tougher times
investing/trading in the stock market. So whether someone is in
their middle-age years or looking to monitor their holdings
properly as they head into their retirement years, our service
tends to resonate to what you could describe as "mature"
As we continue to grow as a company, we are attracting some
younger investors as well. Thanks to the word spreading from our
current subscribers to their kin, the younger generation is
beginning to realize that saving and investing work very well
At the end of the day, it's never too late and certainly never
too early to get started with dividend investing!
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
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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
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data on the web. Many subscribers use this data as part of a
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use it to keep track of impending payouts. Just visit our
for a complete outlook on which companies will be paying out
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Thanks for reading, and I'll see you tomorrow!
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Best Dividend Stocks
, as well as a detailed explanation of
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