We are getting a rare break in the action today from this
month's momentum stock buying binge. After a back-and-forth
session, we ended up closing back down toward the lows of the
The run-up this month has been narrowly focused on many of the
high-beta trader favorites (Netflix, Priceline, Chipotle, Apple,
Freeport McMoran, etc). I have been cautioning against trying to
jump in and switching your investment perspectives to get in the
high-stakes trader action, as I think the eventual failure odds
(which are super-high) will catch up to many who have not been
experienced in what it takes to be a successful trader.
We hear from many people who like to dabble in more active
trading with the "Dividend Capture" strategy. The focus in
capturing dividends is to buy a stock before the ex-dividend date
and then sell it right on the ex-dividend date, in hopes of
pocketing some extra change. We even hear investors doing this in a
retirement-based IRA account. We do not offer specific investment
advice on the dividend capture strategy, but we do have a terrific
Ex-Dividend Dates Calendar
that can be used to peer ahead at what companies will be paying
dividends in the weeks to come. This feature is available to
Dividend.com Premium members and is a good source to reference if
you do try the "Dividend Capture" method.
My goal is for investors to take the slow and steady route of
buying quality dividend-paying stocks and somewhat limit turnover
in one's portfolio. Patience does reward many investors that take a
slow and steady approach when it comes to high-quality
dividend-paying stocks. Our
Best Dividend Stocks
list is set up for investors to consider which dividend stocks to
put any new capital to work into.
Getting back to today's action, Southwest Airlines (
) saw a bump on news the airliner has offered to acquire AirTran (
). Alberto-Culver (
) was up as well on news the company is going to be acquired by
) . We can expect to see numerous job cuts following this
acquisition as some analysts felt the buyout price was on the high
side, so Unilever's management will certainly look to tighten up
operations and implement some quick cost-saving solutions.
Fertilizer names were one of the few commodity areas we had any
upside action in. CF Industries (
) and Mosaic (
) led the way there.
Hope everyone had a great weekend and thanks for reading!
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here