The global markets continue the uptrend here today, as the first quarter on 2013 maintains quite the bullish vibe (maybe too bullish?).
As for the specific names moving today, earnings results powered shares of retailers The Buckle (BKE) and Men’s Wearhouse (MW) higher. Commodity names continue to lag, as we heard from steelmaker Nucor (NUE) this morning they will be missing estimates for the next quarter. Wall Street analyst upgrades helped push stocks like Apple (AAPL), Comcast (CMCSA), and Oracle Corp (ORCL) higher.
It’s hard to check out the various media channels and not hear about two big winning streaks going on right now. One is in the sports world with the NBA’s Miami Heat (led by the formerly despised Lebron James — it’s amazing how winning changes everyone’s opinion) winning 20 straight games, and the Dow Jones Industrial Average, up 9 sessions in a row. The last time we saw a streak this long for the Dow was November 1996.
In the long run, the winning streak will be meaningless if the Miami Heat don’t cap off a great season with their second straight NBA title. Same goes for the markets if they should fizzle out and the “Johnny-come-lately” retail investors who just recently jumped in quickly bail out — with nothing but losses to show for their momentum chasing instead of investing.
The media is going to be all over the streaks, but as an investor in the markets, you can not worry about the day-to-day. Instead you should pay close attention to what the tape has been saying for the last few years. Buying on pullback days is actually a great strategy, so before losing your mind that the last train is leaving the station, take a breath and realize normal markets will have pullbacks. In a healthy market, buying pullbacks is how smart investors make money. Smart investors also don’t need the instant gratification of stocks going up immediately after they push the buy button.
So while we cheer for green on the screen, red can be just as good for smart investors (just not too much red of course).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!
We have much more about why Dividends are so awesome if you check out our “What is a Dividend?” page here.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.
We don’t ask for a credit card to use our free trial, and we don’t bill you when your trial ends. No obligation whatsoever! So keep enjoying the newsletter, but please give Dividend.com Premium a shot if you haven’t already subscribed!
Thanks for reading, and I’ll see you tomorrow!
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here