The markets started celebrating the slow move back to normalcy
as the clean-up from Hurricane Sandy takes shape. Economic data out
this morning was also favorable, adding to investor confidence.
Plenty of earnings were out today, with names like Visa (
), Cigna (
), Automatic Data Processing (
), and Kellogg (
) shares jumping up. Visa and Cigna are riding the consumer
spending wave and higher healthcare premiums, respectively. Moving
lower following earnings results included the likes of Barrick Gold
), GNC Holdings (
), Exelon (
), and Allstate (
). Estee Lauder (
) was out with earnings results and the company boosted its
dividend nicely as well, but still with a subpar yield of slightly
over 1%. Shares ticked lower by the close.
As always, you can check out our coverage of all the earnings
reports and other important daily news affecting dividend stocks
The Dividend Daily
We Interrupt Your Life for This Unplanned Event
As we continue the long cleanup here on the east coast from the
Hurricane Sandy destruction, plenty of lives that will feel the
effects of this storm not just short-term, but eventually long-term
in many cases as well. This idea goes beyond the idea of putting
one's home back to its original shape - I'm referring to the
effects a natural disaster can have on one's career.
Take the area where Dividend.com is located, for example. Our
area just outside Atlantic City is big on hospitality and casino
employment. The industries that service the many vacationers who
flock to the Jersey Shore survive partially on tips. With the
casinos here closed for several days, travel bans in effect, etc.,
these folks simply will not be able to make up for those lost tips.
And with the casinos already struggling for the last couple of
years, the storm could not have come at a worse time. For those
individuals reliant on a sustained stream of visitors to supplement
their wages, the timing of this disastrous storm is another hurdle
they'll have to overcome.
As recent data suggests, few people have the financial means to
absorb even a small drop off in their regular income. I know that
assistance programs are out there, but as I said, you can not
change the eventuality that one's career may have a permanent gash.
So while the business media focuses on the money that will have to
be spent in replacing cars and furniture, fixing homes, etc.,
consider the other part of the story as well. The reality is that
many folks' earnings have been severely negatively affected.
Bankrate released a study a few months back regarding savings
habits of individuals, and the findings weren't good. It showed
only 25% of Americans have at least six months of savings built up.
Nearly half (49%) of Americans polled don't even have enough money
saved to cover three months of expenses, while 28% have no cushion
whatsoever. Many of these individual stories will not end well.
It comes down to this: to position yourself for success in
investing (and life in general), it's useful to identify key areas
that may one day become a big obstacle in your path to building
wealth. These factors can range from needing to free up more money
to invest each month, to cutting back on frivolous spending, a lack
of education on how best to manage your investments, and taking a
regular pulse of the industry you work in to make sure you are not
putting your family at risk if events occur (industry
consolidation, layoffs, technology making your job obsolete,
So take a step back and consider what you can do to improve your
finances. Time will quickly become less of your ally and more of
your enemy, especially when life sends you an unexpected twist.
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 ten months of 2012. As always,
you can find these and other members-only articles on
Dividend.com Premium Articles Page
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 DailyReckoning.com 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
- 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
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
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