The markets were hoping to ride on the Japanese markets’ rally today, following the Bank of Japan announcement of its aggressive deflation-fighting plans. Essentially, the Japanese government is borrowing a page from Ben Bernanke’s playbook, hoping for some printing press magic similar to what we’ve seen here in America. However, the weakness over in Europe’s markets are certainly putting a damper on our own averages early on.
Best Buy (BBY) shares had a big day on news the company will be partnering with Samsung in putting Samsung mini-stores in numerous Best Buy locations. Toyota Motor (TM) shares were jumping as the weaker yen will help the auto giant’s bottom line. Wall Street analyst upgrades were boosting names like Monsanto (MON), Vornado Realty (VNO), and Digital Realty Trust (DLR) early on. Despite the ever-growing tensions with North Korea, gold (GLD) prices continue to struggle, unable to make much headway.
Apparently the lessons of the recent financial crisis for officials in Washington have been forgotten. We’ve now gotten news of a broad push to make more home loans available to people with weak credit once again. The idea is to spur home sales for young people looking to buy their first homes, and individuals with credit records weakened by the recession to get their piece of the housing rebound story.
Now as much as we would love to see prosperity spread to everyone, if Washington looked at the data points for the recent real estate rebound, they would find the bulk of the big gains are in higher net-worth areas. Yes, we have seen some of the hardest hit areas rebound some, but this is off of super-low levels (and the bump there has been fueled almost entirely by speculators, not families buying homes to live in). Plus, those weaker areas have continued to struggle with employment opportunities. You can’t have a sustained real estate rebound unless these areas build a strong foundation of job growth.
Unfortunately, Washington tends to put the cart before the horse when trying to come up with solutions. Prosperity built on nothing but air deflates just as quickly as the bubbles that form.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!