Market Wrap-Up for Jan.4 (NEM, ABX, AEM, DIS, MCD, YUM, COH, more)

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We have not had much red on the screen to complain about in months and with the financial media parading out bullish prognosticators one after another, we actually could be setting up for a pullback.

The market has certainly been over-bought for a while and I have been clamoring for a bit of a pullback so our subscribers can get in on some high-quality dividend names at even better prices. Our watchlist for new possible additions to our recommended list continues to grow, and that is a good sign for the markets overall.

Investors need to remember to scale into positions so that there is no worry that if a stock drops after one takes a position, unnecessary panic ensues. For many that are subscribers to our service, the goal is to build wealth and a new income source. This will not be a 40-yard dash, but instead it should be a steady jog. The idea is to consistently make money available that can go to work for you.

Here's an example of the beauty of compounding interest that dividend stocks can provide: investing just $3000 into dividend-paying stocks over the course of 5 years and re-investing the dividends over the course of 56 years, will grow to over $1 million (Based on historic 11% annual returns). Now most people may not be thinking that far out, but when you think about only having invested $3K to get to that total, what could you do when you commit to putting more money to work, and doing it year after year? Check out the link below to our Compounding Returns Calculator and have some fun plugging in different numbers and you will certainly see what I am talking about.

Looking at the market a little closer today, we saw significant selling in the gold-mining plays. Stocks like Newmont Mining ( NEM ), Barrick Gold ( ABX ), and Agnico-Eagle Mines ( AEM ) all saw profit-taking. Retail stocks were lower as well, with Coach ( COH ) and Abercrombie & Fitch ( ANF ) finishing in the red. Fast-food restaurant plays were also lower, with McDonald's ( MCD ) and Yum Brands ( YUM ) continuing their recent slump. Walt Disney ( DIS ) bucked the early downtrend, following a Wall Street analyst upgrade.

The website for my new book "Be a Dividend Millionaire" due out in 2011 is up. Please check it out at DividendMillionaire.com for more info. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now.

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: ABX , AEM , ANF , COH , DIS

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