Despite a plethora of earnings already out this morning, lots of momentum traders and money managers are gearing up for results after the market closes today from tech titans Apple (AAPL) and Amazon (AMZN). You can bet the business media will offer every conceivable take on these reports, including how they’ll affect the markets tomorrow — and possibly for the rest of the year. We will be watching as well, but we also realize there are many other companies that investors should be focusing on, especially if the time line is longer than a trading day or a week.
Back to some of this morning’s big movers on earnings, Colgate-Palmolive (CL) finished lower on their weaker-than-expected results. The company may have also surprised some with their job cut announcement. Here is a company trading near all-time highs, yet still plans to cut 6% of their workforce. We certainly understand a company running lean, but cutting jobs while the company shares are doing so well certainly gives us a pause as to what the company may be seeing in the period ahead.
Other names pulling back following earnings results included Mead Johnson Nutrition (MJN), Starwood Hotels (HOT), Sherwin-Williams (SHW), and Cliffs Natural Resources (CLF). Best Buy (BBY) came out with yet another gloomy outlook on profits, and shares ended down as well.
Trying to end on a positive note, Wynn Resorts (WYNN) announced a generous special dividend as well as intentions to raise its regular dividend payout in 2013. The news comes despite the company’s revenue drop from last year. Procter & Gamble (PG) shares were also higher on raised guidance. Similarly, however, the company reported a drop in revenue from last year. Its quite likely P&G will need to consolidate a bit to meet increased earnings projections, since revenue growth may be tougher in the quarters ahead.Working Till 80 (Good Luck with that Strategy)
A Wells Fargo survey just released showed a growing number of middle-class Americans plan to postpone their retirement until they are in their 80′s. 30% of the survey respondents indicated their wish to keep working til at least 80e, compared to 25% last year. The best time to hustle and invest as much capital as possible is while you are in your peak earnings years. This range is generally between 35 and 55 years old. Now if you work for yourself, you have a greater chance of maintaining a higher salary beyond 55 if you so choose to keep running your own business.
There are numerous factors working against those who plan to work until age 80. One such factor is that finding work today is getting harder, as the skill-sets for particular jobs continue to change. You may have the desire to work, but the job you are in could be eliminated down the line due to changing technologies, not to mention the mantra of doing more with less. As companies get more efficient, only the best of the best will have the opportunity to remain a salaried employee. Companies continue to engage in practices to avoid heavy and lasting pension obligations. We haven’t even discussed health concerns many face. When you see stats saying nearly half of the American population will be obese by the year 2030, rising health care costs will only continue — another fixed cost companies are trying to work their way around.
I admire those who want to suit up well into their later years, but to me, it should be by choice and not one of necessity. Do everything you can while you are in your middle years and don’t forget to keep investing in assets that produce income. The equation of salary plus income investments makes for the best possible retirement. Heck, if you need two jobs to do so while you are younger, do whatever it takes to increase the money coming in. And of course, do your best to control the flow of the money going out.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 highlights:
- 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 Dividend.com Premium 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
We know many of you enjoy reading the daily newsletter, but remember that with our Dividend.com Premium service, the newsletter is just one small component of what we offer. Here are the “Big Three” benefits of our Premium service:
- The Best Dividend Stocks List is used by tens of thousands of investors to help build their own portfolios.
- Creating your own Watchlist allows you to track the performance, news, and upcoming dividend payouts of the particular stocks you care about.
- Finally, we offer the most complete and easy-to-use dividend data on the web. Many subscribers use this data as part of a “Dividend Capture” trading strategy, but long-term investors can use it to keep track of impending payouts. Just visit our Ex-Dividend Calendar for a complete outlook on which companies will be paying out soon.
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Thanks for reading, and I’ll see you tomorrow!
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