The market got off to a solid start today following a report
from payroll services firm ADP showing private sector employers
added 157,000 workers in June, far exceeding expectations of
60,000. This data comes out one day ahead of tomorrow's monthly
jobs report. The buying sentiment from investors stayed consistent
throughout the day.
Besides a bullish jobs report, various monthly retail sales
reports coming in this morning showed consumer spending remained
strong in June. Department store plays Target (
) and Kohl's (
) both popped on their numbers. Dillard's (
) was a big winner, gaining over 9% by the close. One name that
disappointed and ended trading lower was J.C. Penney (
). Elsewhere, Wall Street upgrades moved stocks like Visa (
), Capital One Financial (
), and Avon Products (
) in the green. On the flipside, Wall Street downgrades pushed
shares of Yum Brands (
) and Northrop Grumman (
) lower in the early going.
Standard & Poor's came out with headlines yesterday saying
dividend raises at companies in the S&P 500 index during the
second quarter rose nearly 33 percent from 335 in the same quarter
last year to 444. This is a great sign for investors looking to
create new income streams.
Speaking of dividends, we're constantly asked by Dividend.com
readers about exactly how to qualify to receive a dividend payout.
Here is the short answer you need to know:
In order to receive a company's dividend payout, you must
own the shares prior to the ex-dividend date. You can then sell
the stock any time on or after the ex-dividend date and still
receive the payout.
I bring this point up because you'd be surprised at how many
brokers give clients the wrong information when it comes dividend
payouts and how you qualify for them. If you are someone who likes
to invest around dividend dates, be sure to get on the same page
with your broker so there are no assumptions to whatever you are
looking to do with capturing dividend payouts. Of course, we prefer
investors to look at the long term and build a quality dividend
portfolio, but many readers are also interested in capturing
is the perfect tool for this type of strategy.
If you're new to dividend investing, or just need a bit of a
primer on the basic points you need to be aware of, I also suggest
you check out our
Dividend Stock Library
, which is chock full of useful dividend info.
Dividend investors that are looking for income should not be
distracted by the headline grabbers and instead be looking for
opportunities in companies that are currently on our
Best Dividend Stocks List
. Our main focus is on quality dividend names with attractive
yields, and this should be the main focus for all those that are
hoping to build income for the long-term. We will continue to parse
through our data to make sure only the names we like best remain on
our recommended list. Remember, if we downgrade stocks from the
list, it is not a sell call! Only in very rare instances will we
advocate liquidating positions in a formerly recommended name. We
just want to have the best names from a risk/reward standpoint on
our recommended list for new money at all times. Investors should
however utilize a sell strategy in the event a company you own
drops 25% from its 52-week high and there are company-specific
problems that could cause additional significant underperformance
for that particular stock.
Thanks for reading, and I'll see you tomorrow! P.S. Please pass
this e-mail on to someone you think can use some financial
motivation as well as being kept in the financial news loop that
could affect them.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here