The markets traded mixed for the most part today, as we closed
out a very solid first quarter. While some traders booked profits
on some of the higher-beta names, the dividend stocks we like
continue to hold up well. We are carefully monitoring our
Best Dividend Stocks List
to make sure we feel the current price levels remain attractive for
new capital. Additionally, we are looking for new potential
upgrades that could deserve a look.
Checking out today's tape, health care plays Aetna (
AET
) and Wellpoint (
WLP
) continued to move higher on what has been a strong week for the
sector in general. Wall Street analyst upgrades had stocks like
Wyndham Worldwide (
WYN
) and Disney (
DIS
) gaining ground. On the flipside, we had some selling in stocks
like Valero Energy (
VLO
) and Cliffs Natural Resources (
CLF
). Credit card processors Mastercard (
MA
) and Visa (
V
) also fell as news spread of a possible security breach for what
could be up to 10 million card holders.
What Matters the Most
When my kids were little, they'd see me reading many different
financial publications (magazines, newspapers), and ask me "Daddy
why do you read all those?" My usual answer was that each
publication has different writers, and I like to know what more
than one person thinks.
In today's investing world, we have countless resources at our
fingertips. Even if we wanted to read everything we could get our
eyeballs on, we'd only scratch the surface of the huge amount of
information out there. So, what's the solution? How do we stay
well-informed while avoiding "paralysis by analysis"?
Personally, I like to stick with sources that tend to be right a
lot more than they tend to be wrong. Sounds like a simple concept
right? Well, when you factor in how the mainstream
business/investing media treats the markets, being "right" doesn't
matter as much as you'd think.
The business media's strategy is to gather up as many differing
opinions as possible. When the markets are higher, the prime-time
players come on and spout about how much higher we will go, with a
sprinkle of skepticism thrown in just to play devil's advocate.
When the market is struggling, the opinion is then focused on how
much lower can we go. At those points, those analysts who can paint
a bleaker picture are given center stage, with again a sprinkle of
optimism this time, just in case the clouds start to lift.
To find the voices you can truly believe in, I suggest you stick
to analysts who paint the markets how they really are, and not how
the media wants you to see them. It was always my goal from day one
with Dividend.com this kind of trusted voice who can cut through
the difficult layers of data and information overload for
investors. I hope we're doing just that for readers of this
newsletter.
The End, or the Beginning?
I can't believe it's been more than 20 years since sports fans
and the world in general were stunned to hear NBA legend Magic
Johnson reveal he had tested positive for HIV. At the time, given
the lack of education on the subject, most people assumed the
disease was a death sentence for anyone who contracted it.
It's truly amazing to look at all that's transpired since that
fateful day. Magic Johnson is not only still alive, but his health
has remained very strong. Furthermore, he has flourished in the
business world, and is part of the group buying the L.A. Dodgers
baseball franchise for $2 billion.
Magic's road to this point certainly wasn't easy. I remember
hearing several NBA players speak out against Magic Johnson playing
in the NBA All-Star game following his diagnosis. These athletes
were concerned about their own health in playing against Magic,
wrongly believing they could contract HIV from a simple basketball
game. Others were unsure of the extent of the disease and felt it
was better for all involved if Magic just retired. Think about how
hard such a scenario must have been - going from world famous and
supremely successful in a certain arena, to being immediately
shunned by your colleagues.
To Magic Johnson's credit, he did come back and play in the NBA
later on. Although he didn't achieve as much success as he had
previously, he was ultimately able to find the strength to go out
on his terms. Since then, Magic has been an incredible entrepreneur
and has not stopped living his life to the fullest.
Magic Johnson's journey is a great example to consider whenever
we get dealt an unexpected blow in our lives. When you decide to
truly rise to a challenge, there's no telling what's possible.
Our
Beat The Markets with Dividend Stocks
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Dividend.com Premium
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great way to get prepared for your investing next year! So head
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A Look to Next Week and a Weekend Preview
Looking ahead to next week, earnings will be fairly light, with
reports from the likes of Monsanto (
MON
) and Schnitzer Steel (
SCHN
), 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 much more. And as always,
you can view our current recommendations on our industry-leading
Best Dividend Stocks List
.
Thanks for reading, and I'll see you this weekend! P.S. Please
pass this e-mail on to someone you think can use some financial
motivation as well as being kept in the financial news loop that
could affect them.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
.