The latest batch of real estate-related data released this
morning showed the sale of new homes fell 8.4% in June, which
contradicts data from the month earlier. The May data showed sales
hitting a 2-year high. As we keep saying, economic data remains
consistently inconsistent, adding to investor frustrations.
The big focus today for the markets was on earnings, as we are
in the heart of earnings season. Today's standouts on the upside
included semiconductor plays Altera Corp (
ALTR
) and Broadcom (
BRCM
), with both stocks bouncing off recent 52-week lows. Also seeing
green were shares of Eli Lilly (
LLY
), Boeing (
BA
), and Ace Ltd. (
ACE
). On the flipside, selling was the main theme for the following
earnings names, including Wellpoint Inc. (
WLP
), T.Rowe Price (
TROW
), Apple (
AAPL
), Lorillard (
LO
), International Game Technology (
IGT
) and Corning (
GLW
).
On Second Thought…
Lots of hoopla this morning following former Citigroup CEO Sandy
Weill's appearance on CNBC. Mr. Weill commented that the big banks
need to broken up, separating their investment banking and trading
activities from traditional savings & loan operations. The
irony is that Mr. Weill was one of the biggest proponents in the
late 90′s of making "Super-banks or supermarkets for financial
services." He lobbied for and succeeded in getting legislation
altered so that major U.S. banks could do just that - and we all
know how that story turned out.
Now Mr. Weill is back on the scene with a retraction of the very
same model he so feverishly pushed for and likely profited
handsomely from. It's amazing how things work on Wall Street, isn't
it? These folks simply move whatever way the wind is blowing.
Too Many "Transition Boomers" are Unprepared for
Retirement
Allianz Life Insurance Company of North America recently
completed a survey where one-third of so-called "Transition
Boomers" (age 55 to 65) indicated uncertainty about their
retirement income needs. More than half (64%) were ages 55 to 60
and about one-third (36%) were between 61 and 65. The study also
found one-quarter of the group uninformed about the effects of
inflation, while more than 40% lacked a realistic idea of when
retirement planning should begin.
Now here's an even bigger shocker from the report: forty-three
percent of respondents said they will not focus on retirement
income strategies until they are less than five years from the
start of retirement, with 16% waiting until six months to one year
prior.
We all know rising food and energy costs, along with bigger
ticket expenses (college, mortgages, etc.) have limited the
retirement savings for many people. Thankfully, there are solutions
available for those unprepared for retirement.
Taxpayers age 50 and over are eligible to make a Roth IRA
catch-up contribution of an additional $1K/year, bringing the total
of their contribution to $6K annually. And here's the thing: if you
were to invest $5K per year for every year in your 50s, each $5K
you invest could turn into more than $40K after 20 years! To be
able to achieve returns like that, quality dividend-paying stocks
are a must. Historically, dividend-payers have averaged 10-12%
returns annually. The bottom line is to invest in assets that
produce income, even if you find real estate-related deals that can
produce positive cash flow. We love dividend stocks first and
foremost, but if a great deal comes along and you can derive some
great income from a real estate property, why not diversify if the
numbers work.
Remember, it's never too late to get the ball rolling. Even if
you have to keep working for longer than you originally planned, at
least you know you have a chance to recover financially in your
golden years.
The bottom line is for individuals to start investing as soon as
possible, and consistently stick with the process of building a
huge nest egg. Whether you're starting from scratch and opening
your first online brokerage account, educating yourself as to what
dividend stocks can work best to generate returns, automating the
process of getting money to be put to work to work, or just keeping
a watchful eye over your portfolio each month,
no one will care more about your finances than
YOU!
Each and every day here at Dividend.com, we try not only to find
the best dividend stocks for one's portfolio, but also to keep our
recommendations as current as possible for those looking to put new
capital to work.
Our
Beat The Markets with Dividend Stocks
eBook Has Arrived!
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Dividend.com! In this digital-only book, we look ahead to 2012 and
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for paid
Dividend.com Premium
subscribers.
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contains a full economic forecast for 2012, including in-depth
analysis on 65 of the biggest dividend stocks out there. It's a
great way to get prepared for your investing next year! So head
over to the
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now to download your copy.
I hope everyone had a chance to check out our
Dividend.com Premium
members-only weekend articles , including new features that
highlight some of the biggest winners and losers from the week that
was, such as analyst upgrades/downgrades and earnings/story stocks.
These articles are a great way to catch up on the week that was in
the markets. We also have a rundown of how various Dividend ETFs
performed on the week.
Thanks for reading everybody. 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
.