It appeared investors were buying into a weekend global
coordination event, as the markets are maintained a positive bias
throughout most of today's session.
Financials were finally able to participate in the upside as we
saw gains for the likes of Deutsche Bank (
), Bank of America (
), and Morgan Stanley (
). A positive Wall Street analyst call had shares of Oracle (
) posting gains on the day. Energy stocks also rallied following
news that billionaire Carlos Slim has taken a stake in shares of
oil producer YPF SA (
). Stocks like Chevron (
), EOG Resources (
), and Schlumberger (
) paced the gains for the sector.
The Cost of Raising a Child Surges Higher
In the latest numbers out from the Department of Agriculture,
the average middle-class family who had a child in 2011 will shell
out $234,900 to keep it fed and a roof over its head for the next
17 years. The data included costs totaled from housing, food,
transportation, and of course, education.
For many future families, the onus will be on saving early and
often. Investing in assets that produce income will also be a key
practice for successful families. How can we best achieve the
results needed to not only pay for a child's education, but also
for one's retirement? The answer is fairly straight-forward: invest
in quality dividend-paying stocks that have a history of increased
payouts and solid businesses that can ride out different business
The powerful force of compound interest can help investors reap
big rewards over time. Companies are raising their dividend payouts
more frequently than ever these days, and the size of the hikes are
getting more generous. You can bet company executives are starting
to realize a good dividend payout can do wonders to put a floor
under a stock's price. Many companies are also looking to eliminate
much of the day-to-day volatility that can make investors' heads
The long-term benefits of dividend investing are enormous, even
if you have minimal capital to get started. Let's highlight some
examples below to illustrate the power of dividend stocks.
Investor #1 starts investing $5k a year at age 25 and does so
for 40 years ($200K total invested) in Bank CDs, money markets,
etc. averaging 3% a year. After 40 years, this person's nest egg
becomes worth just over $652K.
Investor #2 starts investing just over $4K a year at age 45 and
does so for 20 years ($81K total invested) in dividend-paying
stocks that historically average an 11% annual return, this
person's nest egg becomes worth over $653K.
Investors #3 starts investing $5K a year at age 55 and does so
for 20 years ($100K total invested) in dividend-paying stocks that
historically average an 11% annual return, this person's nest egg
becomes worth over $806K.
As you can see, compound interest is a very strong force when it
comes to putting money to work over a period of time. Also, you
will notice the danger of being too conservative with your money
(as Investor #1 was). They had the right idea is starting young,
but they chose too conservative an investment road. Lastly, you see
that age is not really a factor when it comes to being invested
properly. This example should inspire many individuals who make the
mistake of thinking it's too late to make a difference for your
As mentors to the next generation, it is our job to get them to
understand investing is a marathon, not a sprint. The sooner you
explain how compound interest works and why dividend stocks can be
a great strategy for decades, the better off our young folks will
be during their financial lives.
Most of the Time, You Can't Press "Rewind"
New York Mets pitcher R.A. Dickey today will hear the decision
on his appeal to Major League Baseball. You see, Mr. Dickey
recently threw a one-hit game because of a controversial first
inning call. The official scorer of the game ruled a first-inning
chopper to third a hit, while some feel it should have been an
error. Had it been scored an error, Dickey would have pitched only
the second no-hitter in Mets history.
For investors, pressing the "rewind" button usually isn't an
option. Every day that goes by without executing a wealth-building
game plan represents time that cannot be retrieved.
Regardless of where we are in an economic cycle, everyone needs
a plan. We still receive emails from Dividend.com readers sitting
in cash who continued to watch the markets from the sidelines.
These folks are confused about when they should start putting money
to work. They want to time the markets perfectly. They're afraid of
the next big crash. They think the markets have run up too much
already, and that they've missed the boat.
Ironically, when the markets the most overbought is when
investors relax the most. Flip the script to when markets are
slumping, and the fear index jumps dramatically - that's when when
investors tend to make bad mistakes. Their biggest mistake is
thinking they can time the markets' ups and downs. Dividend
investing requires a steady focus on income-building stocks that
can sometimes fall to even more attractive levels. However, some
names won't be as attractive with lower prices, simply because the
company's near-term profits may be more in question than the names
that remain on our
Best Dividend Stocks List
Just because you can't hit "rewind" doesn't mean it's too late
to start investing. People often underestimate how long they need
to have money working for them. Invest as early as you can and as
long as you can. Finally, avoid letting your age trap you in
under-performing investments - especially ones where yields (bank
CDs, savings accounts) are detrimental to fighting real-life
Beat The Markets with Dividend Stocks
eBook Has Arrived!
We just debuted our brand new 275-page eBook, exclusively on
Dividend.com! In this digital-only book, we look ahead to 2012 and
the main factors that could affect dividend investors. A $39.95
value, the eBook is a
Beat The Markets with Dividend Stocks
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
Dividend.com Premium homepage
now to download your copy.
A Look to Next Week and a Weekend Preview
Looking ahead to next week, earnings will continue to be light,
but we are expecting results from FedEx (
), Discover Financial Services (
), and Oracle (
), just to name a few. The focus will likely be on the economic
data as well as the latest Wall Street analyst calls.
Be sure to catch up with our latest watchlist updates this
, including reports on earnings/story stocks, analyst
upgrades/downgrades, dividend ETFs, and much more. And as always,
you can view our current recommendations on our industry-leading
Best Dividend Stocks List
Thanks for reading, and I'll see you this weekend! 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
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