The markets saw a continuation of yesterday's rally after the G7
group of countries intervened in the foreign exchange market for
the first time in more than ten years in an attempt to halt the
rapid appreciation in the Japanese yen versus the dollar. There is
also talk of a Libya ceasefire that is giving market-watchers hope
oil prices can settle down a bit. We'll have to wait and see how
this plays out, but my guess is the currency development is
something investors will want to keep on their radar.
Shares of tobacco play Lorillard (
LO
) spiked on news an FDA ban of menthol cigarettes appears unlikely.
This is a name we have liked in the past, but we will closely
monitor the newsflow before reconsidering the stock for our
"Best Dividend Stocks" List
. The official FDA ruling is set for next week, and LO has been
extremely volatile as a result.
Nike (
NKE
) shares were hammered following the company's earnings release. I
am certainly glad we removed the name from our
"Best Dividend Stocks" List
back on March 7, advising subscribers to ring the register on that
name. That said, Nike is certainly a great brand that we will be
looking for a future opportunity in. Elsewhere, a name we like -
General Mills (
GIS
) was up on news the company could be close to acquiring a
controlling stake in the Yoplait yogurt brand. Analyst upgrades
helped push up shares of Accenture (
ACN
) and Unilever (
UN
) this morning. Construction equipment maker Caterpillar (
CAT
) gained as more talk of rebuilding efforts in Japan could become a
catalyst for the shares. Finally, tech giant Cisco Systems (
CSCO
) announced its first ever dividend payout this morning. The yield
will be around 1.4% - not great, but it's a start. The shares
gained slightly. We had a slew of dividend increases from several
financials, including J.P. Morgan (
JPM
), State Street (
STT
), U.S. Bancorp (
USB
), Wells Fargo (
WFC
), and BB&T (
BBT
).
Whenever I get asked about financial success, I can't help but
start with non-investing topics first. There are things everyone
needs to be aware of before they can set the table for building
wealth. Discipline in how one spends money is critical to getting
you financially fit. Buying "things" may feel good short-term, but
the more money that is siphoned away from investment vehicles early
on can really hurt your long-term outlook. "Keeping up with the
Joneses" is a lousy game to try and play and will only make you
more miserable as time goes on. Stick to buying some of the cheaper
wants (lattes, handbags, clothes, electronics) instead of the
big-ticket items (cars, boats, etc.) if you can not avoid the
shopping experience. Debt is part of most of our lives. Defining
good debt from bad often incurs quite an argument, but it's safe to
say that racking up any sort of high credit card balances will set
you back. Home loans and student loans can be dangerous as well,
depending on the situation. Not paying attention to inflation will
also cost you dearly if you are not paying attention to where your
money may be presently sitting. Savings account and CD bank
customers are missing a huge chance to buy quality dividend-paying
companies that should be able to consistently raise profits through
any inflation period. Too many people are also ill-prepared for any
unforeseen emergencies that can pop up (job loss, injuries that
force one out of work, etc.). You see, there needs to be a good
foundation when it comes to the goal of building wealth and having
financial security.
Plenty of people dream about getting rich, but when given the
opportunity to work hard to get there, some choose to take the easy
road. Unfortunately the easy road is often full of other
individuals that echo the missed opportunities they wish they had
pursued. I am a huge fan of the entrepreneur's road to getting
wealthy, as I am living that passion today. I have been an
entrepreneur for the last 20 years or so, and I would recommend it
to anyone who is ready to make the sacrifices needed to
succeed.
Every business opportunity becomes a stepping stone to something
even bigger. You just have to make sure your current lifestyle can
absorb some potential early lean years. I remember selling my home
to get extra capital for when I embarked on my stock trading
career. It wasn't the easiest decision to make, but the family was
small enough at the time to be able to deal with what many
considered being a step backwards. It was something I knew I needed
to do to give me enough of a cushion to pursue what was my dream at
the time. Fast forward to a few years back and I utilized a home
equity loan to help me put together enough capital to purchase the
Dividend.com domain name we use for our business today. It was yet
another sacrifice that many questioned at the time, but I knew that
I had something special I was going to do, but money was necessary
to make it happen. The challenge to become better with each
experience is what drives me today and what I hope can inspire many
that read my posts to go for their dreams. Whether you choose to be
an entrepreneur or work your way up the company ladder, just keep
pushing until you get there. You don't ever want to look back at
your life and see it was full of missed opportunities. Age should
never be a hindrance to reaching your goals. Ray Kroc was 59 years
old when he began turning McDonald's (
MCD
) into a global brand. At the time, he was suffering from diabetes
and arthritis. His gall bladder and thyroid gland had already been
surgically removed. Don't let anything stand in your way!
As we look ahead to next week, some big name earnings will be on
tap, including Best Buy (
BBY
), Oracle (
ORCL
), and Walgreen Co. (
WAG
), just to name a few. Be sure to catch up with our latest
watchlist updates this weekend on
Dividend.com Premium
, including reports on earnings/story stocks, analyst
upgrades/downgrades, dividend ETFs, and more. And as always, you
can view our current recommendations on our industry-leading
"Best Dividend Stocks" List
.
One last thing, please pass this newsletter on to any family,
friends, or colleagues that you think could benefit from it. Word
of mouth about Dividend.com is one of the best gifts you can give
us.
Another final thought, what information you are absorbing in
your lives can impact how you see your life? Focus on things that
will continue to inspire you and maybe a bit less of things that
can give you a negative slant of life. Building positive momentum
will lead to many successes in life. It's a simple
self-perpetuating loop that anyone can do.
Thanks for reading!
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
.