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Market Wrap-Up for Nov.7 (T, BKE, TWX, AGU, WLP, GOLD, more)

By: Dividend.com
Posted: 11/7/2012 4:38:00 PM
Referenced Stocks: AGU;BDX;BKE;DVN;GOLD

Today's sell-off was probably not the market reaction many were expecting when we entered the trading day with flat futures following President Obama's re-election victory. Market-watchers that had been hoping for a subdued reaction to the likelihood capital gain tax hikes are officially in play certainly were not pleased with the day's action.

Before we take a look at what was down (much of the stocks we follow), let's focus on stocks like The Buckle ( BKE ) which ended higher following the announcement of a generous special dividend payout. Also, Time Warner ( TWX ) closed higher following the media giant's earnings results. As for stocks trading lower on earnings, there were plenty, including Wellpoint Inc. ( WLP ), Molson Coors ( TAP ), Becton Dickinson ( BDX ), Agrium ( AGU ), RandGold Resources ( GOLD ), and Devon Energy ( DVN ). Lastly, we know it's a tough day when shares of AT&T ( T ) closed down over 3%, despite announcing a dividend hike this morning.

Election's Over, Now What?

The Election is now over and regardless of whether you are satisfied with the results (at national or local levels), we must all prepare to take the next steps to ensure we can build momentum going forward. Will the gap between the haves and have-nots narrow much, if at all? That's one of the questions pundits are going to be focused on. To that point, I firmly believe that everyone possesses the ability to improve their financial situation. History is full of rags-to-riches success stories.

The formula is pretty simple, really: target a career in an area of growth going forward or build a great business or service, take the money coming in and methodically buy income-producing assets. Avoid the get-rich quick schemes and the masses who believe opportunity is going to come knocking on their door. You have to go and get it.

Couple this process with living within your means, including keeping a tight lid on your living expenses. Select a place you can afford to live and forgo some of the material possessions you don't yet need. That's called sacrifice, and almost anyone who has built themselves a fortune will point to many sacrifices along the way as key factors in their success. Whether you're forgoing some of the latest fashions or gadgets, or simply working extra long hours, the road to success is paved with sacrifice.

Finding the right strategy for investing is also essential. Of course, we feel that dividend investing remains one of the best possible avenues (albeit being much more selective with the likelihood of higher tax rates on dividends/cap gains) for the vast majority of all people out there. Once you've come up with an investing game plan, putting what you've learned into practice is the second step. We advocate investors develop a monthly system of putting money to work in their brokerage accounts. Automate this process as best you can, so you remove any mental barriers. Embrace investing as a constant learning process. Be willing to keep an eye on what your investments are doing. Staying in the loop is an integral part of growing your money.

Just dabbling in the markets will not get you to where you need to be. Develop a routine and stick with it! If you have a habit of jumping in and out of the markets, dividend investing is the best remedy for that affliction. You'll gain a new perspective on long-term investing and the power of compound interest.

Dividend investing does not require a special talent, education level, years of experience, luck, or much money either. It simply requires a commitment from you as an investor that to keep consistently put money to work in the best ideas available (that would be from our Best Dividend Stocks List). It's that simple!

An Important Note Regarding the Best Dividend Stocks List

We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.

And here's one last thing to remember about what we do here at Dividend.com: it's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!

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 .