I used to dread days like today back in my active trading days.
There was absolutely no edge whatsoever for taking positions,
knowing the reaction to the Fed decision could go either way. Most
of the time the moves would be big, so if you were an adrenaline
junkie, this was your moment (to likely lose money). Fortunately
those years are long gone and investing for income has been the
right recipe to build real wealth over time.
Looking at today's early movers, Procter & Gamble (
) saw seeing investor selling following
the company's lowered guidance this morning
. We have liked the name in the past and will take a closer look if
selling gets overdone and the valuation risk/reward measures
Wall Street analyst calls are making some waves as the early
trendless tape looks for leadership. On the upside, positive
analyst chatter had stocks like Applied Materials (
), and Marathon Petroleum (
) rallying. On the downside, cautious notes had names like Rockwell
), Southern Co. (
) and Walgreen Co. (
) ending in the red. Oil (
) prices got hit hard as inventory supply numbers out today were
Savers Still Being Penalized
As market watchers awaited word from Federal Reserve chairman
Ben Bernanke on where interest rates/economic growth were headed, I
went out on a limb (sarcasm) by saying we wouldn't see anything
different from last time, and that was pretty much correct. The Fed
issued some commentary about extending "Operation Twist" and the
script of record low interest rates remained unchangeded, and
likely will not change for the foreseeable future.
Savers certainly have nothing to be grateful for regarding the
Federal Reserve's consistent policy of keeping interest rates at
abysmally low levels. Many individuals, young and old, continue to
choose to either sit in cash or instead to give their money to the
bank. The bank, in turn, "generously" pays them 1.41% on average
for a 5-year CD (according to today's numbers posted on
Bankrate.com). What does the bank do? They take that money and
invest it themselves, earning a much higher rate of return.
For the "safety and security" of earning almost nothing,
individuals continue to forfeit their ability to create better
returns for themselves. High-yield dividend stocks (think in the 3%
to 7% range) are clearly a better option than CDs and savings
accounts in the current environment - and will continue to be for
several years to come.
Thankfully, many of our readers have taken my message of
wresting control over one's nest egg to heart. This process isn't
difficult at all. All you need is an online brokerage account,
money being saved and automatically deposited into the account,
reading great investment research sites like ours at Dividend.com,
and the persistence to do put your money to work weekly, monthly,
The Early Morning Advantage
New research from the University of Toronto came up with an
interesting and not surprising finding regarding adults' sleeping
habits. It appears that morning people, who rise around 7:00 am,
are happier and more energetic than people who prefer to get out of
bed around 10:00 am.
These findings aren't at all surprising to me. I've spent my
life waking up to alarm clocks (usually very early in the morning
for the better part of the last 25 years), without the services of
the snooze button. I know many people like to hit "snooze" to
squeeze in a bit more rest time, but I fear some do so because they
aren't looking forward to the day ahead of them.
From running my own food business to running my own capital as a
trader, I always had a great reason to get up and out of bed. This
trend has certainly continued with running the day-to-day of our
Dividend.com site as well.
I've always been an advocate for waking up early. I find it's
much easier to get things done that way. Not everyone needs to wake
up as early as I do, however. The real key is that when you do wake
up, you should have a firm plan as to what you want to accomplish
that day. Great musicians, for example, don't need to wake up early
to perfect their craft, but they will often stay up into the wee
hours of the morning in order to get things done. So you see,
rising early isn't a must - as long as you're willing to stay up
In conclusion, you have to be willing to put in the time in
order to be successful. Preparation is also key to get you off and
running each day. This process has worked wonders for me in my
life, and I know it'll do the same for you.
An Important Note Regarding the Best Dividend Stocks List
We want to make sure everyone understands that the stocks on our
Best Dividend Stocks List
are the names we currently like for new investor capital,
regardless of what date the stock was first recommended on. If and
when a stock is removed from the list, we will clearly state
whether the stock should be sold (which is rare but occasionally
will happen), or simply held in one's account until we see a better
entry point or catalyst.
And here's one last thing to remember about what we do here at
Dividend.com: it's not just the names that we recommend that can
help you build wealth, but also the things we try to steer you away
from that are just as important. Forget about speculative or penny
stocks, chasing unprofitable IPOs, and listening to the manic
talking heads in the business media!
Beat The Markets with Dividend Stocks
eBook Has Arrived!
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the main factors that could affect dividend investors. A $39.95
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contains a full economic forecast for 2012, including in-depth
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A Dividend Capture Strategy for Active Investors
We now offer complete U.S. dividend data for all
members, so anyone that focuses on "Dividend Capture" trading
strategies should have plenty of good stuff to research each day.
Just check our enhanced
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Speaking of dividend capture, Dividend.com Premium members can
also access a 9-page report we published on the essential elements
to any successful dividend capture strategy. Be sure to check it
out here on the
Dividend.com's Very Own National TV Commercial Has Debuted
Our first-ever television commercial! has started running on
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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