The market pushed higher today as investors saw some of the
recent gains re-captured.
We made some adjustments to our recommended list today, so be
sure to check out the links below if you did not read the e-mail
alert we sent out earlier.
It's been a great year for dividend payouts so far. Our data
indicates that a whopping 362 companies have increased their
dividend payouts already in 2011, while just 18 companies have cut
their payouts. This is a great sign for dividend investing, as
companies are clearly re-dedicating themselves to providing value
to long-term shareholders through aggressive dividend
increases.
Brown Forman (
BF-B
) had a nice pop following the company's earnings results,
finishing up nearly 5%. Retailers held up well despite a huge
earnings miss from Urban Outfitters (
URBN
). We still remain underweight the retail sector, which has had a
tough going so far in 2011. Qualcomm (
QCOM
) raised their dividend payout but shares closed lower following a
Wall Street analyst downgrade. Some of today's biggest winners
included Public Storage (
PSA
), Caterpillar (
CAT
), and PNC Financial Services (
PNC
).
Gloomy data posted yesterday from the the Congressional Budget
Office indicated the U.S. had its largest monthly deficit in
history in February at $223 billion. That figure tops last
February's record of $220.9 billion, and marks the 29th straight
month the government has run in the red - a modern record. The
government certainly isn't setting an example of how individuals
should be running their own fiscal households. We have seen
fluctuations in the past, but this data trend of big budget
deficits is going into its third year. You can certainly sense the
media is gearing up for quite a political battle as we head into a
presidential election year in 2012.
The best thing individuals can do is get one's financial house
in order and expect that certain benefits will get cut along the
way. Social Security payouts have been frozen for two years
straight and there isn't much optimism that we will see much of a
change when a decision is due on whether there will be any
increases for next year at this point. More than 53 million people
receive Social Security. Retirement benefits average $1,100 a
month, and disabled workers get an average of $1,065. The average
monthly Social Security benefit for retired workers in December
2010 was $1,175.50. That would produce an income of $14,106 per
year. The maximum possible Social Security benefit a worker who
retires at age 66 in 2011 could get is $28,392 annually.
If you don't protect your portfolio against inflation, you're
going to run out of money much sooner than you would like. This is
a problem for conservative investors who have remained on the
sidelines, deciding to keep their money in low interest rate
savings accounts or CD's. This type of investing will often earn at
a rate lower than inflation (especially over the last 3 years, with
interest rates at historically low levels). The real value of money
kept in these low-interest investment vehicles is actually
decreasing over time.
Increasing one's exposure to quality dividend-paying stocks that
have consistently raised their dividend payouts is one way to
cushion one's investment portfolio to the crushing blow of
inflation over time. Getting back to social security, delaying when
you file to receive social security payments can be a smart thing
for many. A top-earner retiring at 62 would get $1,803 a month. By
waiting until 66, he'd increase that amount to $2,442, and delaying
until 70 would bump the monthly payment to $3,256. Lastly, have as
few financial obligations as possible as retirement approaches.
Examine your financial situation and figure out a plan to pay down
as much of your debt as you can before you retire. This will be a
much needed piece of mind.
I have two scheduled media appearances I wanted to let everyone
know about this week. The first is RADIO AMERICA "HOME AND FAMILY
FINANCE RADIO" (NATIONALLY SYNDICATED) - This is a 7.5 minute taped
interview on 3/9 to air first week in April. Home & Family
Finance, presented by America's credit unions, is a weekly one-hour
show hosted by veteran television anchor and radio host Paul Berry.
The program offers consumer finance information and advice to a
general audience. Radio America programs are broadcast via three
satellites and over 400 affiliates in 60+ U.S. metropolitan markets
carry this program. It also broadcasts Home & Family Finance
weekly to all of our overseas military bases and facilities in 65
countries. The second is KABC MARKET WRAP WITH MOE" (SYNDICATED) -
This is a 5-10 minute taped interview on 3/10. Market Wrap is a
nationally syndicated broadcast carried 6 days a week on 12 radio
stations in the western US. Interviews air during drive time from
6:00 to 6:30 PM PST, on KABC which reaches over 1.2 million
listeners every week and is the nation's third largest radio
station.
As you may know, my
"Be a Dividend Millionaire"
book release has been moved up to April 14th! I hope everyone can
grab a copy (and maybe some extra copies to give to others). 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.
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
.