A weaker-than-expected durable goods number put the markets on
the defensive today.
Weakness in the Asian markets overnight sent a chill to
commodity-related investors, with stocks like Peabody Energy (
BTU
), Caterpillar (
CAT
), and Freeport McMoran (
FCX
) falling throughout the day. We have more on the commodity space
below. Meanwhile, negative Wall Street analyst calls pushed shares
of IAC Interactive (
IACI
) and NYSE Euronext (
NYX
) lower. We did see gains for both Pentair (
PNR
) and Tyco (
TYC
), which announced a merger deal this morning. Read more on the
particulars
here
.
The Dodgers Are Being Sold for $2 Billion - It's Good to be an
Investor
News is out this morning that a group including former NBA great
Magic Johnson will acquire Major League Baseball's Los Angeles
Dodgers for $2 Billion. That total is more than double what the
Chicago Cubs were acquired for ($845 million) in 2009. The McCourt
family, who acquired the Dodgers from News Corp in 2004 for $420
million, stand to make a huge profit - even after all the debt owed
is paid off.
I'm sure many baseball club owners are smiling this morning, as
the perceived values of their own teams have no doubt risen sharply
following today's news. When I see deals like these get done, I
feel more strongly than ever that investors should always put their
money to work for them. I urge you to avoid sitting in cash for any
length of time, because opportunities are all around us. I continue
to hammer home the idea of buying assets that produce income
(dividend stocks, positive cash flow real estate, profitable
businesses). Cash is great to have, but over time, its buying power
will only fall lower and lower.
Commodity Dividend Names Look Attractive, But?
A couple of commodity names have popped up as interesting
dividend plays recently. These stocks include Cliffs Natural
Resources (
CLF
) and Freeport McMoran (
FCX
), with both names now sporting 3%-plus dividend yields. The
companies face a big problem right now however, namely, concerns of
an economic slowdown in China. I have seen companies in the
commodity space quickly cut their dividends when business begins to
wane. They're also known for cutting earnings guidance at a moments
notice, sometimes taking what was supposed to be a profitable
quarter, to expecting a loss. As tempting as these two names (and
other commodity plays) may look, we'll need to see more positive
economic tidbits before considering them as long-term
investments.
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!
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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
.