Market Wrap-Up for Sept.27 (LUV, AAI, ACV, UL, CF, MOS, more)

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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 day.

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 ( LUV ) saw a bump on news the airliner has offered to acquire AirTran ( AAI ). Alberto-Culver ( ACV ) was up as well on news the company is going to be acquired by Unilever ( UL ) . 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 ( CF ) and Mosaic ( MOS ) 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 .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AAI , ACV , CF , LUV , MOS , UL

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