The markets put together another winning day, partly on
better-than-expected jobless claims data as well as rumors the U.S.
is considering tapping oil reserves to help bring down high energy
Weak earnings numbers from retailer Guess (
read the full report here
) and somewhat weak numbers from Ross Stores (
) had those two names lower. On the flipside, despite
a weak forecast
from tech play ADTRAN (
), the stock ended the day higher. We have seen this trend lately
from tech and the semiconductor space in particular (Altera (
), Texas Instruments (
)), where despite weak guidance, the shares have run higher.
In other news, Wall Street upgrades helped shares, including
rail play Union Pacific (
) and J.M. Smucker Co. (
). Overall is was a strong day for the recently weak transports
sector. Dow theory watchers like to see the transports acting well
as it tends to be an overall strong gauge for the economy and the
rest of the market in general.
Dividend Stock Removed from Recommended List Today
Be sure to
check out today's downgrade
highlighting a name we removed from our industry-leading "Best
Dividend Stocks" list.
Every Announcement is Moving the Stock Price
We are now at the stage with Apple (
) shares where each and every announcement is spiking the stock
higher. This is where the term "parabolic" comes into play. Last
summer we saw something similar with Netflix (
) before those shares imploded over the next several months that
followed. Remember, any stock that goes parabolic gets pretty
dangerous for investors thinking about taking a long-term
Try this latest nugget on for size concerning Apple. Yesterday,
the stock's daily dollar volume (number of shares traded multiplied
by price of stock) was nearly $30 billion. In the month of
February, the average daily dollar volume of the entire NYSE was
around $36 billion. How crazy is that! Maybe that one analyst I
mentioned last week was right - this market is NBA right now
(Nothing But Apple).
Part-Time or Nothing
More and more I am hearing about companies looking to expand
their workforces, but with higher reliance on the part-time front.
As job-seekers look to get one leg in the door, there will be some
tough decisions on how one should proceed when evaluating
employment offers. There is no set "right" answer to this question.
If you are younger and have less expenses, you likely have the
flexibility to take a shot at getting into a field you really
desire. The key is to make sure the field is actually one that can
prove to be lucrative in the long term.
I was reading a recent interview with mega-successful
entrepreneur Mark Cuban who also owns the NBA Dallas Mavericks
franchise (and who also won the NBA championship last season). He
was advising many of his young readers to avoid the sports industry
when it comes to a career. He says the area is ultra-competitive
and when you consider the fact that many people will offer to work
for little or no compensation, the potential to make a lucrative
career in sports isn't good.
Some people will say that money isn't everything, but you can't
discount it entirely. The trade-off in getting a gig that may not
be on the top of your list is that you can get to your financial
(investing) agenda sooner than later. Whether it's ourselves, our
kids, or our grandkids, we need to put the time in to evaluate the
present cards that are on the table and make the best decision we
can possibly make at the time. Not working and sitting around
waiting for the perfect gig isn't advisable right now. You may be
waiting a long, long time.
The upside to part-time work is that you may find an area or
industry that begins to grow on you. This job can turn into a
career down that line that you may not have imagined early on. As
always, I urge parents and grandparents out there to help your
younger ones fully consider their career options as we move ahead
in a very difficult job market.
My Cell Phone Does It Automatically
This past weekend we had to adjust our clocks ahead by one your
in our annual spring daylight savings time ritual. I asked my
daughters if they had adjusted their clocks, and they simple told
me their cell phones do it for them automatically.
It got me to thinking that as investors we all need to make sure
we ourselves operate like cell phones when it comes to updating key
issues automatically. The main issue I'm referring to is putting
money to work each and every month, regardless of where the markets
are. Now there are many of our readers who are religious when it
comes to following this practice, but there are plenty of newbies
who can use a bit more pushing to avoid the complacency that tends
to happen over time. I have heard some investors treat their
investments as "monthly expenses" that they factor into their
budget. Why not? It makes sense and if this neat little idea holds
you accountable to setting money aside to invest, by all means,
At the end of the day, only you can put in place the proper
procedures to carry out the ambitious task of building wealth and
having financial freedom. What do I always say? No one cares more
about your money than YOU!
New MLP Report Just Released!
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Head to the
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25 Years of Dividend-Increasing Stocks
We recently updated our list of dividend stocks that have been
paying out dividends for 25 years or more. Be sure to check out
the latest list of names here
Dividends Really Matter
Financial blog DailyReckoning.com recently took a look at the
difference dividend payouts made in the overall return investors
saw throughout the prior decades. Here are some of the
- The Nasdaq is down 28% since the end of 1999. Even the "blue
chip" S&P 500 stocks are down 15% during that time frame…until
you add back those "boring" dividends. With dividends included, the
S&P 500′s 15% loss flips to a 6% gain.
- Without dividends, the S&P 500 index would have produced a
loss for the 25 long years from August 1929 to August 1954. Then
again, without dividends, the S&P 500 produced a 5% loss during
the 13 years from September 1961 to September 1974. But with
dividends included, the S&P's loss became a 46% gain.
- Over the course of the last half-century, dividends have
contributed more than half of the stock market's total return -
56%, to be exact.
Of course, you can't discuss the potency of dividend investing
without making mention of how awesome compound returns are. I can't
stress enough the power of compound interest: you take a small
amount of money and turn it into a large amount over time. Finding
the right companies at the right price points which not only grow
earnings, but also grow their dividend payouts as well!
New Watchlist Article Out Today
Be sure to check out our weekly Top 50 High-Yield Watchlist
Names post that is out today, exclusively for
members. This list gives readers a good idea of what stocks we're
watching behind the scenes here for potential upgrades.
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Best Dividend Stocks
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