With Facebook’s (FB) IPO debut overshadowing much of the global economic concerns today, traders were piling back into some of the fast market movers here in the U.S., but by the end of the day many of the high-beta stocks gave back their gains. Facebook barely held their syndicate price levels of $38 a share.
We are using the recent pullback to examine many of the brands we currently like and others that are becoming increasingly attractive. That said, we added two new names to our industry-leading “Best Dividend Stocks” List this morning. More on these upgrades below.
Looking at today’s big movers, earnings results helped lift shares of Foot Locker (FL). On the flipside, investors headed for the exits on news from Schnitzer Steel (SCHN) and The Gap (GPS). Wall Street analyst downgrades added pressure to names like Best Buy (BBY), Tupperware (TUP), Goldman Sachs (GS), and Sysco Corporation (SYY).Two New Dividend Stocks Recommended Today!
Since the markets have been getting hit hard in recent weeks, investors may want to scale slowly into positions. No reason to make huge lump-sum purchases trying to catch an exact bottom.There is No Perfect Time
We often get e-mails from readers sitting on large cash reserves, asking whether it makes sense in the current market to deploy the money all at once. Unfortunately, we can’t provide readers with individual investment advice, but here’s the bottom line: never jump all-in or all-out at one time. Trying be precise with big amounts of money is not worth the risk or worry.
As I’m sure everyone has noticed, the markets have pulled back over the past month or so. If you’d timed a large lump-sum purchase in mid-April, you probably wouldn’t feel very good right now.
In my opinion, the best way to deploy capital is over an extended period of time by scaling into positions — whether we have good months or bad months in the markets. Sure, you might be able to side-step a sell-off from time-to-time, but over the course of years, you’ll likely miss as many good days as you will bad ones.
Will we get even better entry points for the stocks we like? It’s possible, but as long as you are not trading the markets, pullbacks should be welcome. I’m certainly not turning bearish. We simply look at the risk/reward for the names we currently like and the names we are watching. If we like the risk/reward, those names will be on our industry-leading Best Dividend Stocks List. If the risk/reward isn’t as attractive, then the stock won’t appear on that list, and we wouldn’t put any new capital into those names.
Dividend investing is about putting as much money as you can to work consistently over a period of years. Your patience will be rewarded, as it has for decades for those who focus on building wealth by acquiring income-producing assets like dividend stocks.Don’t Spread Yourself too Thin
We all want to accomplish a great deal in our everyday lives. In order to not spread yourself too thin, I suggest prioritizing the few things you care about the most first. For more people, these priority should be career/business, investing, and family.
Only after these key components are taken care of should we spend time on hobbies, friends, etc. If you neglect money and family issues for too long, you run the risk of a system breakdown. Take care of your true priorities first, then worry about everything else.
Each day, I come up with a production list (a carryover from my days in the food business) to make sure I accomplish everything I need to. I also encourage my children to do the same, and it’s interesting to see their priorities — and how those priorities change over time.
As we get older, some of us tend to lose track of our real priorities. Setbacks are inevitable in these situations, so staying as focused and organized as possible will help keep you ahead of the game and simplify your life. On the road to wealth, you’ll need to stick to keep your priorities straight in order to grow your money over your investing lifetime.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 Lowes (LOW), Hewlett-Packard (HPQ), HJ Heinz Co. (HNZ), and Costco (COST), 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.