Market Wrap-Up for Mar.29 (BBY, MOS, AXP, WFM, CAT, CLF, more)

Share |

Economic concerns in Europe and uncertainty as to whether the U.S. economy has turned a corner had the markets seeing red for much of the day until some late-day buying, led by several commodity plays kicked in.

Best Buy ( BBY ) came out with bad news about guidance as well as an announcement they will be shuttering 50 stores. BBY is a stock we continue to steer clear of, even as the company is portrayed as a value gem among some of Wall Street's bargain shoppers. Fertilizer play Mosaic ( MOS ) was also lower following the company's earnings report. Elsewhere, negative Wall Street analyst calls hurt shares of Whole Foods ( WFM ), PNC Financial ( PNC ), and American Express ( AXP ). Again, it's been a strong quarter for many names, so a bit of profit taking is certainly expected from traders. Back to the rebound names, Peabody Energy ( BTU ), Cliffs Natural Resources ( CLF ), and Caterpillar ( CAT ) all saw buyers take a taste following the recent selling.

America's Love Affair With Cars

I was just reading an interesting nugget out of credit information company TransUnion, which studied the payment patterns of 4 million Americans with at least one car loan, one credit card, and a home mortgage.

Among individuals who were late on any of those payments last year, 39 percent were delinquent on the mortgage while current on the car loan and credit cards, and 17 percent were late on credit cards while current on the other two.

In Thomas J. Stanley and William D. Danko's book The Millionaire Next Door , the authors wrote about how little emphasis "under the radar" millionaires placed on driving new cars. I have the same mindset and my preference is to put my money to work while enjoying other goodies. It's a personal choice of course, but pricey monthly car payments should be toward the bottom of anyone's list, if the goal is to build wealth. If you have already reached a level of success where money is not as big a concern, then by all means indulge. Hoarding money forever doesn't make much sense either!

Sharing a Vision

Legendary Microsoft founder Bill Gates has always believed that smart people broken up into small teams can solve big issues. He has been quoted as saying, "It is important to have someone you fully trust, who is totally committed, shares your vision, yet who has a little bit different set of skills that can also act as a check on you and will make sure you have thought things through."

I can think of two situations where this quote directly describes my life as it is now. With, we have a small team that coordinates all decisions and visions before we take the necessary steps to move forward. It is a formula that has worked wonders for myself and our organization so far.

Additionally, no one is closer to me on a personal level than my spouse. Without my wife believing and supporting everything I have wanted to do for our family over the past two decades, I couldn't have achieved everything I have. So if you have a core support at home and in your career, you can indeed conquer a lot of your goals. For everyone out there who has seen success, my guess is Mr. Gates' thoughts probably jibe with what you've seen in our own life. For those who are still on their way to big successes in life, keep these thoughts in your back pocket and see if you can indeed use this roadmap to get where you want to be both personally and professionally.

New MLP Report Just Released!

In The Essentials of Investing in MLPs , we outline the do's and don'ts of investing in high-yield Master Limited Partnerships (MLPs). Our exclusive new MLP report outlines everything you need to know about these popular high-yield investments, including:

- Understanding their unique company structure
- What you absolutely need to know about their special tax treatment
- Why MLPs may not be suitable for retirement accounts
- How to find the best high-yield partnerships
- …and much more!

Head to the Premium page to download this brand new report today!

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 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 highlights:

- 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 Premium members. This list gives readers a good idea of what stocks we're watching behind the scenes here for potential upgrades.

Go Beyond This Newsletter

We know many of you enjoy reading the daily newsletter, but remember that with our Premium service, the newsletter is just one small component of what we offer. Here are the "Big Three" benefits of our Premium service:

- The Best Dividend Stocks List is used by tens of thousands of investors to help build their own portfolios.

- Creating your own Watchlist allows you to track the performance, news, and upcoming dividend payouts of the particular stocks you care about.

- Finally, we offer the most complete and easy-to-use dividend data on the web. Many subscribers use this data as part of a "Dividend Capture" trading strategy, but long-term investors can use it to keep track of impending payouts. Just visit our Ex-Dividend Calendar for a complete outlook on which companies will be paying out soon.

We don't ask for a credit card to use our free trial, and we don't bill you when your trial ends. No obligation whatsoever! So keep enjoying the newsletter, but please give Premium a shot if you haven't already subscribed!

Thanks for reading, and 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: AXP , BBY , BTU , CAT , CLF

More from

Related Videos



Most Active by Volume

    $15.75 unch
  • $27.18 ▲ 4.70%
  • $109.50 ▼ 1.16%
  • $13.46 ▲ 3.46%
  • $28.03 ▲ 0.94%
  • $106.05 ▲ 0.40%
  • $24.15 ▼ 5.96%
  • $114.93 ▲ 6.32%
As of 10/8/2015, 04:04 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by