Market Wrap-Up for Mar.6 (SPLS, AEO, DELL, HON, AAPL, QCOM, more)

As Dow record high talk permeates the stock universe, investors are feeling added pressure from those in the financial media who continue to pound home further optimism on why the proverbial train is leaving the station. I see this rhetoric as the usual news-driven hype that makes investors become irrational in their portfolio decisions, but there’s no sense in complaining about the market’s performance either. Green tends to be a nicer color for stocks than red ever is. It’s just that red for dividend investors can often bring smarter entry points over the long-term.

Looking at some of the market’s movers, we saw earnings results push shares of American Eagle Outfitters (AEO) and Staples (SPLS) lower, despite both companies announcing a hike in their dividend payouts. In other news, Honeywell (HON) shares edged higher after management reaffirmed this year’s earnings guidance.

Wall Street analyst calls also played a part in today’s session, with stocks like Aetna (AET) and Discover Financial (DFS) gaining, while cautious commentary moved shares of Qualcomm (QCOM) and Apple (AAPL) lower. Dell (DELL) shares were active on news Carl Icahn may be trying to get involved in Dell’s efforts to go private.

Will Investors Have the Fortitude to Get In and Stay In? (My readers should know the answer to this question)

Just about every major and local news outlet is touting headlines today about the Dow closing at all-time highs yesterday. I often pass this sort of coverage off as nothing more than after-the-fact “did you know” blather.

The best question I saw posed was someone asking about whether investors who have been on the sidelines throughout the market’s march higher the last few years will have the fortitude to get in and not get shaken out. The answer to this is fairly simple. No they won’t! Here’s why: because they believe they are going to time the perfect entry point to get in. Yes, some will throw in the towel and jump into the markets with both feet, but counting on them staying in the markets when the inevitable pullback happens is almost laughable.

Investor types that like to do the “in and out” sideline dance will never get the results they want. It’s too hard to be consistently right when it comes to buying, selling, buying again, selling again, and on and on. Human nature makes it hard for most investors to buy when they see red on the screen for fear the indices are signaling bad news is on the horizon. In some cases, selling will last for a longer length of time, but as we have seen in the past, most selling occurs during a several-month stretch, while the rebounds often last much longer than most would have expected.

Those who remain non-committal in their investing ways will almost always remain that way. So to answer the question one more time. No, I don’t expect investors who have missed the gains to get in and remain. Not now and not ever.

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An Important Note Regarding the Best Dividend Stocks List

We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one’s account until we see a better entry point or catalyst.

And here’s one last thing to remember about what we do here at Dividend.com: it’s not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!

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Thanks for reading everybody. I’ll see you tomorrow!

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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