A better-than-expected jobs number had the markets popping once again today. Is the market overbought at this point? Probably. But we aren’t going to fuss about market gains at this point. Remember, we’re in the business of making money. In the meantime, the S&P and Nasdaq have still not had a down week in 2012, while the Dow was barely lower for just one week.
Looking at today’s action, we had earnings results lifting up shares of Clorox (CLX) (report here) and Microchip Technology (MCHP). Bullish Wall Street analyst calls also worked magic for shares of Cummins Inc. (CMI) (read more) and Eastman Chemical (EMN) (more here).
Financials were also strong today. This push is to be expected, with the sector up big thus far in 2012. Leading the move higher today were shares of Citigroup (C), Prudential Financial (PRU), Goldman Sachs (GS), and Morgan Stanley (MS).Making Your Own “Call to Action”
Whether you subscribe to Dividend.com Premium or any other quality investment research service, you are in a sense making a commitment to take action when it comes to building wealth. Commitment is essential in making a positive change in your financial future.
Ask most people about commitment and they’ll probably tell you they need a bit more time. When it comes to investing, I question why anyone would want to delay the process of building wealth. Each day you put off is one less day you have money working for you. Procrastinating is natural, but the perfect time for anything is hard to pinpoint. So avoid over-analyzing if all it ever leads to is inaction.
How do you eliminate the guesswork? Simply by reading and learning about the areas that are working well for investors in general. If the consensus stays consistent, and more importantly, the results do, you know you are on the right track.Will the Facebook Millionaires Stay Hungry? Probably Not.
In the past 24 hours, business media coverage has been dominated by Facebook’s recent IPO filing. The company currently has about 3,200 employees, and a decent number of them are slated to have monster paydays when the company goes public, likely some time in May. Some employees may be locked in from selling their shares at the IPO, but that probably won’t last very long. When the day comes for them to cash in, I’d bet most of them won’t miss filing the paperwork.
The question then becomes: how will the passion continue for those who have achieved their ultimate financial dreams? We’ve seen our share of hyped companies in the past lose key members of their initial teams within a year or two of cashing out of tons of stock. Some leave to start a new company. Others become venture capitalists (VCs). Some even decide their working days are mostly over, and live it up by traveling the world. These factors can all add up to tough times ahead for unlucky shareholders who are sucked in to buying IPO shares.
There is no prestige for investors in owning shares of anything, unless you are able to count on that particular company to pay back some of their profits (dividends) on a consistent basis. The word “prestige” is probably a bit too strong, regardless. We all just want to see consistency from companies, in their earnings and in their payouts.
The media is fixated on Facebook and will be so until the IPO, just as they were with daily deals site Groupon (GRPN). Once the Facebook IPO passes, it will be on to the next (let me guess, Twitter?). The cycle will continue, with plenty of ups and downs. Google (GOOG) has done a formidable job since coming IPO and getting shareholders some great returns, but the company still lost many of its early team members along the way.
It happens. People are people, and a boatload of money can’t help but change one’s priorities. Ask yourself this: if you hit the lottery tomorrow, how hungry would you still be to keep doing what you’re doing? You’d probably have bigger ambitions to go after at that point. But that’s okay, because again, we’re human.
As an investor, you must decide if every potential risk will be rewarded. Is the Facebook moat wide enough to give investors an ample reward for years to come?
I know as a dividend-minded investor, I won’t lose much sleep about it. I’ll focus on great companies with real businesses, and let the momentum players sort things out themselves. All along the way, I’ll be enjoying steady, consistent returns and generating additional income.Two New Dividend Stocks Recommended Today!
Quick note: if the stocks are moving up too quickly following a recommendation, it may be best to wait for a pullback. Investing is a marathon, not a sprint!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 remain a big factor with some of next week’s big names reporting results include Pepsico (PEP), Coca-Cola (KO), Time Warner (TWX), Walt Disney (DIS) and more.
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.