It was yet another day the markets were able to mount an
afternoon rally on the back of EU bailout package talks. At this
point it would be an absolute shock if there wasn't some form of
TARP proposal structure in place within the next few weeks. The
surprise is how many rallies the markets have been able to benefit
from as it is pretty much the same issues being talked about over
and over again. Normal markets would have already priced in a good
amount of the upside, but these markets have been tough to gauge
for most traders who have tried to ride the ups and downs. As we
have repeatedly seen during rallies, the volume has failed to
impress and today was no exception. We are still seeing much
stronger volume during down days. Something we are not
ignoring.
In the meantime, earnings continue to move the needle. Looking
at some upside performers, Boeing (
BA
), Ace Ltd. (
ACE
), Tupperware (
TUP
), and Wellpoint Inc. (
WLP
) all notched decent gains during the session. Also moving higher
on takeover speculation were shares of Valero Energy (
VLO
).
On the flipside, weak earnings results pushed some of the names
we were watching to the downside. Heading lower were shares of
DeVry (
DV
), Dr. Pepper Snapple Group (
DPS
), CH Robinson Worldwide (
CHRW
), Automatic Data Processing (
ADP
), Lockheed Martin (
LMT
), and Broadcom (
BRCM
). Speaking of recent recommendation LMT, the defense giant did
come in nicely ahead of analyst expectations and raised guidance a
touch as well. The concern remains centered around future defense
budgets, but we still see the stock as attractive, even after
today's pullback. Gold (
GLD
) prices broke back above the $1700 mark as bailout talks continue
to push investors into believing the ECB will follow the printing
press solution to the current debt crisis.
Focus is Key in Business and Investing
I'm often asked about my feelings on how to build a successful
brand. In my many years of being an entrepreneur, I've come to
realize that focus is the main indicator of success.
Focus on what your product is before you even start a business.
Focus on how you will be better than your competition. Focus on
staying true to yourself and your purpose. Focus on solving the
problems that you face as your company grows. Focus on being
accountable, during both successes and failures. Focus on refining
one product as best as you possibly can before even considering
another product, service, or business.
The "all things to all people" model is nearly impossible to
pull off, especially if you're looking at a short timeline. Only
companies that are well-established can sell a wide variety of
products and services. I tip my cap to Amazon.com (
AMZN
) for staying the course as they refined the parts of their
business that have led to them expanding their model. Realize,
though, that Amazon expanded their offerings only after they proved
their worth as a niche retailer of books.
Remember, you've got to walk before you can run. At
Dividend.com, we've considered other ideas for investing services
(ETF ratings, asset management, Dividend.com ETF, etc.). In the
end, however, our focus remains squarely on dividend investing, and
on building our successes with new offerings in the dividend
space.
Speaking of investing, I always try to keep readers focused on
building wealth. Along the way, we face the lure of quick profits
from trading the "next big thing." Business media is very pervasive
these days, and they're all too eager to sell you on momentum fads
that come and go.
I was a trader once myself. To be successful, I had to sacrifice
an incredible amount of time each day to my research. Twelve hours
a day, seven days a week. That's what it takes to profit
consistently in day trading. I can safely say the odds are stacked
against anyone who thinks they can pop in and pop out whenever they
want and make some "fast money" in the markets.
Avoid trying to keep a daily score with your portfolio. Instead,
focus on the long term and putting compound interest to work for
you.
More on Compound Interest
Warren Buffett had a great snippet in his annual shareholder
letter recently. Get this: within the next 10 years, Berkshire
Hathaway (
BRK-A
) will start collecting more annually in dividend payouts per year
from Coca-Cola (
KO
) than their actual original investment. Granted, Warren Buffett
owns nearly 9% of the outstanding shares of Coca-Cola, but this
anecdote reminds us all how great of an asset compound interest
is.
Dividend Increases Ramping Up
In case you missed it, we saw a plethora of companies raise
their dividend payouts yesterday. Be sure to check out
our post running down all those changes
.
A Dividend Capture Strategy for Active Investors
We now offer complete U.S. dividend data for all
Dividend.com Premium
members, so anyone that focuses on "Dividend Capture" trading
strategies should have plenty of good stuff to research each day.
Just check our enhanced
Ex-Dividend Calendar
, which is the best in the business, to search for upcoming
payouts.
Speaking of dividend capture,
Dividend.com Premium
members can also access a 9 page report we published on the
essential elements to any successful dividend capture strategy. Be
sure to check it out here on the
Premium homepage
.
Thanks for reading everybody. 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
.