This morning’s monthly jobs number disappointed the markets, as company hiring shows little signs of real improvement. It didn’t take long for market watchers to take one look at today’s market reaction to that report and wonder out loud what Federal Reserve chairman Ben Bernanke has up his sleeve next to keep the economy from retracting again.
We had quite a diversion in the tape today. First, on the earnings side, we saw shares of CEC Entertainment (CEC), CF Industries (CF), and Estee Lauder (EL) sliding following their earnings reports. On the flipside, income-seeking investors were checking out shares of Consolidated Edison (ED) and Duke Energy (DUK) following their results, as well as their above-average dividend yields. The higher-beta side of the market (volatile stocks that tend to move up or down more than most other stocks), typically dominated by day/active traders, acted rather bleak with many sellers trying to push out the exit doors at once.
Most individuals who try their hand at trading tend to feel lots of portfolio pain on days like today. For dividend investors, it’s just another day to consider attractive high-yield names who may be “on sale” temporarily. Long-term investors’ stress levels are much lower than day traders. It’s nice to be able to see pullbacks as opportunities instead of times to panic.New Dividend Stock Recommended Today!New Data on Dividend Stock Outperformance
A study by research firm Corporate Executive Board once again showed why dividend stocks continue to be the best place for your long-term money. The study found companies in the S&P 500 that pay dividends produced an 8% higher stock price return than non-dividend-paying stocks in 2011.
At the end of 2011, 394, or about 80%, of the companies in the S&P 500 paid dividends, up from 374 in 2010. Also, dividend increase announcements moved up to a seven-year high in 2011.
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!Latest Social Security Data Advocates Waiting to Collect Benefits
The latest study from the Financial Security Project at Boston College finds a dramatic difference in social security check payment totals for those who collect at 62 years of age and those who wait till 66 or 70. Someone eligible to receive $1,000 a month at the popular retirement age of 62 can get $1,336 by waiting until 66 and $1,760 by waiting until 70. Other findings surrounding social security were quite startling:
- Social Security is the most important source of retirement funds for about two-thirds of U.S. workers.
- One out of every four Americans over-estimates his or her benefits; another one in four under-estimates them.
- These misconceptions can play a major role in retirement decisions – to the detriment of retirees who had overestimated their benefit checks.
- Working a few more years – or leaving the workforce but delaying claiming your benefit (if that’s financially possible) – also may be enough time to help repair a tattered savings account.Spending vs. Earning
We all have a period in our lives known as our “best earning years.” The length of this period varies for everyone, but no one can be sure how long their best earning years will last.
In fact, many people’s earnings view has become pretty cloudy. The idea of being a “lifer” in the corporate world has long passed. Companies are making it their business to do more with less, especially as they look to maintain certain profit margins and earnings expectations.
Because of these factors, keeping a tight lid on spending habits is more important than ever. Free up as much money as you can each month to put to work in income-producing assets. That way, you’ll be well-positioned when your best earning years run out.
Solid discipline and an easy-to-follow process of consistent investing will help keep the financial success wheel in motion. Make money in your career, get money automatically deposited into your brokerage account with each check, and control your living expenses. Just remember to give yourself an occasional treat (vacation, material needs/wants) to keep a healthy balance of living.Our Beat The Markets with Dividend Stocks eBook Has Arrived!
We just debuted our brand new 275-page eBook, exclusively on Dividend.com! In this digital-only book, we look ahead to 2012 and the main factors that could affect dividend investors. A $39.95 value, the eBook is a free download for paid Dividend.com Premium subscribers.
Beat The Markets with Dividend Stocks contains a full economic forecast for 2012, including in-depth analysis on 65 of the biggest dividend stocks out there. It’s a great way to get prepared for your investing next year! So head over to the Dividend.com Premium homepage now to download your copy.A Look to Next Week and a Weekend Preview
Looking ahead to next week, earnings will continue to pile in, with reports from the likes of Macy’s (M), Kohl’s (KSS), and Nordstrom Inc. (JWN), just to name a few.
Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium, including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and much more. And as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List.
Thanks for reading, and I’ll see you this weekend! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in the financial news loop that could affect them.
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