As market watchers waited nervously for the open of today's
market action, we stayed busy doing what we normally do. More on
this and other sell-off "anecdotes" below.
Wall Street analyst calls were making the early headlines. On
the positive side, one of our favorite pharma names Bristol-Myers
) is up on positive commentary surrounding recent company drug
data. On the flip side, cautious commentary had stocks like Cummins
), Yum Brands (
), and Charles Schwab (
) down a bit. Oil prices were able to bounce off some early fresh
lows, but investors still need to proceed with caution when it
comes to the sector.
"Markets in Turmoil"?
Over the weekend, the business media did its best to "prepare"
investors for the new trading week. CNBC actually ran a "Markets in
Turmoil" special Sunday night - as if there wasn't already enough
sensationalist headlines breaking every five minutes during the
News viewership continues to decline, and the only way for
networks to counter that trend is by turning up the volume on thing
they think can move the stock tape. All along the way, the quality
of programming continues to suffer. Most investors have probably
seen the usual segments with multiple guests offering sharply
differing opinions, all screaming above one another. This kind of
nonsense is somehow supposed to be helpful to viewers?
Here at Dividend.com, we have no such need for network
shenanigans. Unlike major news outlets, we don't simply bow to
advertisers' demands for higher ratings. We spent our weekend doing
what we've been doing for years: running through our research notes
to adapt to an ever-changing market. Remaining flexible on the
investment landscape is a necessary component of building
Recent "Sell" Calls Causing an Uproar
sell call Friday
on a couple of previously-recommended dividend stocks, several
recent subscribers reached out to us with concerns about our
Best Dividend Stocks List
One thing readers must understand is that our calls
(upgrades/downgrades) are based solely on our industry-leading
market research. When we see danger ahead for a names we previously
recommended, we'll occasionally be compelled to advise a "Sell" -
regardless of how long ago the stock was recommended (or at what
Sell calls are hated, and again, we don't make many of them. 99%
of the time, our downgrades just mean to "Hold" the stock. But
sometimes, our responsibility dictates a "Sell" call. These rare
moves always seem to generate negative feedback from our loyal
subscribers, and we're willing to accept that feedback. Think about
it: we can choose
to issue a "Sell" call (despite strong signals the stock will fall)
and have no negative feedback, or we can bite the bullet, absorb
the backlash, and simply move on. It would certainly be easier to
do the former, but such a decision doesn't jibe with our mission
here at Dividend.com. Unlike most services out there, we put the
best interest of our subscribers first and foremost. We don't
really care if a decision we make is unpopular - we simply make the
best possible calls we can at the best possible times.
we are not a trading service.
In fact, we advise against trading for the vast majority of all
investors. We are a long-term investing service with relatively low
turnover. We do not advocate getting in and out of stocks on a
daily basis, but we do reserve judgment to change our opinion when
we see evidence worthy of doing so.
The Yield Chase Fades (and That's a Good Thing)
As 2011 drew to a close, we saw a lot of hoopla around fund
managers "chasing" yield. We enjoyed the share price pop in many of
the top dividend plays, but as we noted back then, the buying may
have been overdone. Accordingly, we began taking a close look at
our recommendations to make sure their price points still made
sense for new investor money.
Fast forward nearly six months, and some of the stocks we got
cautious on are starting to look better again. We've got plenty of
names on our radar for possible upgrades, and we'll keep
subscribers abreast of any changes. Unlike a lot of market
analysts, we don't like playing the contrarian card (i.e. saying
"buy" when everyone is selling and vice-versa) just for the sake of
playing it. Instead, we let the data we parse through tell us when
to slow down the buying and head to the sidelines in particular
names, or be ready to upgrade names at attractive entry levels for
We know the recent sell-offs can be frightening, but if you are
putting money to work on a regular basis, timing shouldn't be much
of a factor in your process of building a profitable portfolio.
Avoiding a trader's mindset is the best thing you can do -
regardless of whether the markets are volatile or not. Rest
assured, we realize how significant our work is for investors who
are true believers in the message of dividend investing!
Beat The Markets with Dividend Stocks
eBook Has Arrived!
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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
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now to download your copy.
I hope everyone had a chance to check out our
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