Market Wrap-Up for Jan.12 (ITT, CLF, JPM, ACI, FO, more)

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Companies breaking into separate parts (ITT, FO), IPOs, M&A, and increasing dividends are all part of the foundation that should make for stable markets going forward. Pullbacks will certainly be welcome and I am surely hoping for better entry points as investors continue to trickle back into stocks.

I wanted to touch dividend payouts a bit more today. Depending on your broker, you may be able to reinvest your cash dividends back into shares of your holdings at no cost. Did you know that? We have the portfolio generator tool on the site, along with the stock screener where you can assemble a portfolio that will pay you out monthly dividend checks from January thru December. TD Ameritrade has a $10 minimum dividend check requirement to send one out. If you do not have a TD Ameritrade account, you should inquire with your broker on what their policy is, and ask them about any costs to reinvest those dividends if you so choose. For those that are older and looking for monthly dividend income, you should check those tools out. The list from the portfolio generator is based on stocks that are on our recommended list only. According to an analyst at the American Enterprise Institute, there will be an average of 10,000 baby boomers retiring every day. This trend is set to last for the next 20 years. The strain on social security will be intense. We have not seen social security increases the last couple of years, so there will be a need for sources of new income. I can't stress enough the importance for everyone to be proactive, whether one is approaching retirement now or 30 years from now. Compound interest is your biggest friend and dividend stocks can get you results if you get going and start taking action.

Speaking of action, we put three new names on our recommended list today. Be sure to check out the post if you did not read the e-mail alert we sent out earlier. Looking at the headlines, ITT Corp ( ITT ) rallied more than 16% on news the company will be splitting up into 3 separate companies. If you remember, I mentioned that investment bankers would likely be busy crunching numbers on more break-up deals, following the news about Fortune Brands ( FO ) splitting itself up. Cliffs Natural Resources ( CLF ) was higher after the company announced a $4.9B acquisition last night. Financials traded nicely higher, with JP Morgan ( JPM ) shares getting a decent pop after the CEO made comments about increasing the banking giant's dividend payout later this year. On the flipside, Arch Coal ( ACI ) pulled down some coal-related names after the company lowered its profit guidance.

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 .



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: ACI , CLF , FO , ITT , JPM

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