News of a Moody's debt downgrade for Germany put hopes of a
Tuesday turnaround on hold. Earnings misses and cautious guidance
from several well-recognized names also put a damper on economic
rebound chatter. We did finish off the worst levels following a
late-day rumor of further Federal Reserve stimulus action.
Starting with the positives, earnings results from Ryder (
), Lockheed Martin (
), and Simon Property Group (
) had investors seeing green.
SPG also raised their dividend payout
, but as is the case with many REITs we follow, the overall
dividend yield is under 3% and not as attractive as we would like
for new entry points. As for the tougher earnings news, earnings
misses and cautious guidance hurt shares of United Parcel Service (
), Peabody Energy (
), Illinois Tool Works (
), DeVry (
), and Lexmark International (
). Also, after the bell Apple (
) reported a big miss and not-so-good guidance, so we'll see how
nervous the fundamentals crowd gets on the news.
Being Born on Third Base
I had a little chuckle this morning after seeing a tweet
regarding Donald Trump's recent appearance on CNBC. The tweeter
mentioned Donald Trump was giving advice on how to hit a proverbial
"triple" in the investing world, and the tweeter mentioned how Mr.
Trump was born on third base. Of course, the commentator was
referring to Mr. Trump's rich family legacy in the real estate
world (his father was a wealthy magnate before him). Anyway, even
if Mr. Trump was born on third base and thought he hit a triple,
there's something to be said about being able to maintain and grow
your family's fortunes.
We can't deny Mr. Trump's ability to "go big" in most everything
he does. Sometimes it works and sometimes it doesn't, but the point
is, he's never going to be content to fall to the bottom of the
pack in any industry he gets involved in. He rode the real estate
cycles up and got hurt some when they went down. But bounced back
from the down times and rebuilt his empire, eventually spreading
his brand over other verticals. Like him or not, you can't argue
that he is well-recognized and well-respected when it comes to the
world of business.
Mexican billionaire Carlos Slim is an example of someone who
primarily built his fortune himself, from the ground up. Mr. Slim
was an investor in stocks at an early age, but then diversified
into buying businesses. I often talk about the entrepreneurial
spirit and how it can contribute to an acceleration of one's
success, as long as the approach to business is done with the
proper due diligence. When you look at the generations past
regarding the Slim family, his father was able to build the
foundation, but Slim himself catapulted the family's fortunes to
untold heights. There was really little help from the previous
generation in terms of the amount of wealth Slim was born into.
Point being, every one of us has the ability to build the
foundation for our future family generations, and it doesn't take a
lot of money to get this process under way. Having more money to
start with doesn't hurt of course, but it's not as much of an
obstacle as you'd think.
Almost none of us are born rich. The process of building on
early small successes and turning them into big successes is what's
truly valuable. Many of our readers taken my "take charge of your
own financial destiny" to heart, and it's great to hear your own
success stories. I applaud you for that, and for understanding that
investing does not have to be complicated. Your success stories
make me feel really good about what we do here at Dividend.com.
Everyone has the ability to generate wealth, and following our
strategy will allow you to get the power of compound interest
Dividend Stock Removed from Recommended List
We removed another dividend stock from our
Best Dividend Stocks List
this morning. We still like the name, but would wait to add new
money to the shares for now. Check out the name we downgraded along
with a full explanation
Income, Income, Income
At Dividend.com, we maintain our focus on the best
income-producing investments the markets have to offer during time
of heightened volatility. We want to make sure we have only the
most pullback-resistant names on our
Best Dividend Stocks List
. Also, if we see the market putting in what looks like a decent
bottom, we will be prepared to scale up the list of stocks we like.
Stay tuned and be sure to look for
member alerts along the way. Don't count on the government or your
employer to set you up for a remarkable retirement. Take control,
do your own research, and achieve your goals yourself!
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