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
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 (
), Barrick Gold (
), and Agnico-Eagle Mines (
) all saw profit-taking. Retail stocks were lower as well, with
) and Abercrombie & Fitch (
) finishing in the red. Fast-food restaurant plays were also lower,
with McDonald's (
) and Yum Brands (
) continuing their recent slump. Walt Disney (
) bucked the early downtrend, following a Wall Street analyst
The website for my new book "Be a Dividend Millionaire" due out
in 2011 is up. Please check it out at
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