Another set of big-name financial sector earnings were released today. We’re getting set here at Dividend.com to dig much deeper into earnings results coming due the next couple of months.
BlackRock (BLK) and BB&T (BBT) saw gains on the heels of their results, with BlackRock also announcing a dividend hike in the process. Investors were not as keen on results from Citigroup (C) and Bank of America (BAC). Boeing (BA) shares reversed from an earlier drop and rallied to close positive, despite news the FAA was grounding the company’s new “787 Dreamliner” airplane.
Wall Street analyst upgrades pushed stocks like CBS Corporation (CBS) and Medtronic (MDT) higher. CBS was gaining on news the company is looking to implement a REIT strategy for its North American outdoor business (billboards), while selling its international outdoor operations. Despite the nice gains for the averages, cautious analyst commentary did have stocks like Williams-Sonoma (WSM), Mead Johnson Nutrition (MJN), and Yum Brands (YUM) lag for much of the day.The Best Way to Deploy Capital into the Markets
We upgraded two new names to our “Recommended” list today, marking our first new recommendations of 2013. As we always say, there’s no reason to go crazy buying these names immediately, however. The game plan should be to regularly scale into positions month after month and avoid the need to time the markets. I can’t tell you how many investors have been sitting out the markets the last 3-4 years following the 2008 financial crisis. Instead of identifying names to add to during pullbacks, they went all in cash and have some unbelievable gains (share price appreciation as well as dividend increases).
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 probably miss as many good days as you will miss bad. Of course we never imply anyone should throw caution to the wind. We will whittle down our favorite names from time to time, but have never taken all of the names off at any one time.
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.Two New Dividend Stocks Recommended Today!
We added two new names to our recommended list this morning, so be sure to check out the first post as well as the second post detailing the upgrades if you missed the alert we sent out to Premium members earlier.Our 2013 Dividend Stock Guide Has Arrived!
Our new members-only eBook has just been released! This 250-page guide to investing in 2013 contains a concise economic forecast for next year, including full previews for 60 big-name stocks! Be sure to head over to Dividend.com Premium and download it and get your game plan in place for all good things dividend-related in 2013!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.
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Thanks for reading, and I’ll see you tomorrow!