It's a new month for the markets and with that change, new money
started moving in and looking for a place to grow.
Peeking at today's main headline names, M&A continues to
move shares higher, with news of restaurant play P.F. Chang's
getting an offer to be taken private.
Shares were up nearly 30% on the news. Elsewhere, Wall Street
upgrades helped lift stocks like Abercrombie & Fitch (
) and Home Depot (
) higher. On the earnings front, Anadarko Petroleum (
) saw gains following their results, while stocks like Avon
), Emerson Electric (
), and Cummins Inc. (
) sank on their earnings numbers.
Lastly, shares of Arch Coal (
) closed 5% lower on their
latest earnings results and also news it will slash its
quarterly dividend payout by 73%.
This development is a great example of the dangers surrounding
commodity stocks and their supposedly attractive dividend yields.
We are monitoring numerous commodity names that sport above-average
dividend yields, but as in the case of Arch Coal, these companies
may not be shy about cutting payouts in a heartbeat. Our
service isn't just about identifying the best dividend stocks to
buy, but also many you should avoid.
Journeymen Players Tend to Perform Like Most Traders Over
It's funny how every so often we see a "journeyman" or "utility"
player in a certain sport get his moment in the sun. These players
mostly sit the bench, but sometimes get a chance to start due to
another player's injury or other factors. Sometimes these
replacement players wind up doing very well in their limited roles,
leaving fans to ask why they don't get a shot to play every day.
Then almost like clockwork, as you see the journeyman play each
day, his flaws become obvious, and it's clear why he isn't an
Would-be day traders tend to have a similar experience in the
markets. Every so often they nail a trade, netting some great
profits. As a result, friends and relatives may ask them why they
don't trade for a living (since they're obviously so good at
The longer people keep trading, however, the less success they
tend to have. Unfortunately, these lessons are very costly, leading
many to give up investing altogether. Trading successfully is not
an impossible feat, but as I've said many times, day trading
requires an incredible dedication and a very strong
mindset/discipline. Any single moment of weakness can wreak havoc
on a trader's brokerage account.
Throughout my nearly two decades in the markets, I've known many
people who tried day trading for a living. Most of them were
ultimately unsuccessful, and almost none of them still trade. Just
as gamblers at a casino, these folks were always willing to share
their profitable trades with me, but never seemed to mention the
numerous losses that eventually caused them to exit the
Dividend stocks may seem boring, and have certainly been
portrayed as such by the business media. But "slow and steady" has
been the winning mantra for decades. The historical data continues
to back what we advocate is the best way to outperform the markets:
owning high-quality dividend stocks.
Update for ConocoPhillips (
If you noticed a drop in ConocoPhillips' (
) share price this morning, there's no reason to be alarmed. The
announced spinoff of COP's downstream business, now called Phillips
), took place today.
In pursuant to the the spinoff, ConocoPhillips stockholders
received one share of Phillips 66 common stock for every two shares
of ConocoPhillips common stock held on the record date of April 16,
2012. Phillips 66 is now an independent publicly-traded company in
which ConocoPhillips retains no ownership interest. We adjusted the
dividend ratio manually on our site, but we will look for further
guidance from the company regarding future dividend payouts. As of
now, all signs point to COP continuing to pay a similar yield as
they did prior to the spinoff.
Year-to-Date Results Just Posted
Be sure to check out the year-to-date watchlist posts up on the
site today. You can see how well many of the dividend stocks we are
tracking have done through the first four months of 2012. As
always, you can find these and other members-only articles on
Dividend.com Premium Articles Page
Income, Income, Income
At Dividend.com, we maintain our focus on the best
income-producing investments the markets have to offer during time
of heightened volatility. We want to make sure we have only the
most pullback-resistant names on our
Best Dividend Stocks List
. Also, if we see the market putting in what looks like a decent
bottom, we will be prepared to scale up the list of stocks we like.
Stay tuned and be sure to look for
member alerts along the way. Don't count on the government or your
employer to set you up for a remarkable retirement. Take control,
do your own research, and achieve your goals yourself!
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