Market Wrap-Up for Aug.31 (MA, FCX, MON, BRCM, BTU, NEM, more)

We are seeing the standard pause today around the all-important psychological Dow 10K level.

The market is making due with what will be a light volume week, with the Labor Day holiday coming up this weekend. We traded just under 3 billion shares on the NYSE yesterday — that’s 30-40% less than the average volume we’ve been seeing over the past month. Although, we did see a pick up today, with trading getting closer to the recent daily average.

Looking at today’s action, commodity stocks tried once again taking the leadership role, with Peabody Energy (BTU), Freeport McMoran (FCX), and Cliffs Natural Resources (CLF) all closing higher. Gold prices picked up the pace again, approaching new 52-week highs. Mining companies such as Newmont Mining (NEM) and Goldcorp (GG) led the charge. When sellers popped up late, shares of Mastercard (MA), Monsanto (MON), and Broadcom (BRCM) all saw buyers ringing the register.

Interesting data out yesterday from the Commerce Department talked about the savings rate falling in July. Experts are painting the drop as perhaps a build in confidence once again for the consumer. It could be more or less a seasonal factor, with vacation time and back to school shopping causing a dent. Washington likes to interpret the data as a good thing, but everyone knows that the time has come for people to take charge of their own finances. Repeating the care-free spending habits is not a good thing, although the economy needs to get the motor started somehow.

We need to look at other ways to get the economy going that involve innovation and building our own goods in a competitive way. I know it sounds simple, but there are many things that are out of balance when it comes to company profits and how much money they need to make. How hard is it for a company to manufacture a pair of jeans that sell for $150, for around $30, and not manufacture them overseas just to make an extra $15? This is just one example of trying to ideally bring more jobs back home. The problem is trying to balance out a solution without getting Washington any more involved in the corporate side than it is already (banks, auto, mortgage, etc.)

I don’t have any easy answers, but I can tell you that every individual needs to take it upon themselves to plan their own retirement and not leave it up to the hands of others entirely (i.e. Social Security). Getting started by investing in quality dividend-paying stocks is a great way to build supplemental income to whatever other plans you may hopefully have in place. I just know for many today, there are little to no plans in place, so the key is to start right away.

As always, our current dividend picks can be found on our industry-leading Best Dividend Stocks list. 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.

The Enterprising Investor’s Guide for 8-30-2010

The price-to-peak earnings multiple has slipped to just 11.9x as of Friday’s close matching the lowest it has been since October of 2009.

The Enterprising Investor’s Guide for 8-23-2010

The price-to-peak earnings multiple has cooled for the second straight week and now rests at just 12.0x.

Market Wrap-Up for July 29 (AVP, BEN, CLF, CL, K, V, CNX, more)

We have seen some sleepy summer days in the market lately, but this is no excuse for investors to become complacent.

There are lots of economic headwinds that we continue to maneuver through, and we don’t see this situation changing anytime soon. I’ll often get asked about someone wanting to throw a chunk of money in the market in one fell swoop after finding our site and reading a bullish article that I may have written. This is not what you want to be doing with your money, EVER! Scaling into positions is the best approach for someone that has money they would like to put to work. You see, the job of investing is not a one-day hit-and-run event. It is, as I always tend to say, like taking care of a garden. If you begin to neglect the garden, it won’t be long before the weeds sprout up everywhere and the harvest becomes less and less productive. Don’t ever get bored. Stay methodical, look for opportunities, and remain on course by putting funds to work in quality dividend-paying stocks. We always aim to have the “recommended” stocks on our list as names we would either initiate a position in or even add to existing positions. More importantly, begin to use more and more of your savings if you can afford to, and start putting it to work for your retirement or other big event in your life. Investing isn’t a sprint, it’s a marathon. Veer off course, and your road to success will get longer.

Looking at today’s market, the early euphoria that pushed the averages higher has begun to fade. We saw some strong earnings out of the gate from the likes of Avon Products (AVP), Franklin Resources (BEN), and Cliffs Natural Resources (CLF). Offsetting the early pop were disappointing results from companies such as Colgate-Palmolive (CL), Kellogg (K), Visa (V), and Consol Energy (CNX).

We remain focused on the data we are seeing and will continue to keep subscribers alerted as to further changes we make to our recommended list, as well as out dividend watchlists that are published every weekend.

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

FBR Capital Continues to Recommend AT&T as a “Top Pick” (T)

Analysts at FBR Capital Markets continued to back their “Top Pick” status for superpower AT&T Inc. (T) on Thursday.

The firm also backed their $34 price target on the stock, which would represent a 40% upside from T’s Wednesday closing price of $24.19.

An FBR analyst noted, “On July 22, 2010, T is expected to report 2Q10 results. We lower our 2Q10 EPS to $0.59, ahead of consensus’ $0.58. We forecast EBITDA of $10.875B on revenues of $31.1B, ahead of consensus’ EBITDA of $10.852B on revenues of $30.9B. T shares have outperformed the market over the last three months, returning -6%, versus the S&P 500 at -11% and in line with the telecom sector at -6%. Investors discount the outlook for T due to: (1) wireless price war risks as handset market penetration matures; (2) secular wireline margin pressure; (3)increased regulatory oversight; and (4) higher medium-term capex. In contrast, we see less-than-expected regulatory pressure, wireline margin expansion, lower medium-term capex, and a robust wireless revenue outlook as T’s (and VZW’s) extensive RAN, fiber, and data-center upgrades establish a competitive advantage and drive a lower absolute and relative cost structure and higher data-centric market share (and complementary network usage) in the enterprise and consumer segments.”

AT&T shares were mostly flat in premarket trading Thursday.

The Bottom Line
We have been recommending shares of AT&T (T) since Mar.12, 2009, when the stock was trading at $23.35. The company has a 6.25% dividend yield based on last night’s closing stock price of $24.19.

AT&T Inc. (T) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

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

The Enterprising Investor’s Guide 6-21-2010

Last week, the price-to-peak earnings multiple advanced to 12.5x with stocks posting an almost five percent gain–the equity market’s best two week run since November of last year.

* TSX falls 0.22 pct to 11,599.28 on commodity weakness * BMO’s higher profit, Diners Club deal boost bank shares * U.S. Q3 GDP revision slightly lower than expected (Adds details) By Ka Yan Ng TORONTO, Nov 24 (Reuters) – Toronto’s main stock index was lower on Tuesday morning due to weakness in commodity shares and evidence of a slow recovery in the U.S.

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CANADA STOCKS-TSX falls on commodities, but banks rise (at Reuters)

NEW YORK, Nov 24 (Reuters) – The dollar briefly slipped against the euro on Tuesday in choppy trading after a report showed U.S. consumer confidence rose in November

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Dollar dips briefly vs euro after confidence data (at Reuters)

WASHINGTON (AFP) – US economic growth in the third quarter was slower than initially estimated, the Commerce Department said Tuesday, cutting its estimate to a 2.8 percent annual pace of expansion.

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US third quarter growth revised down to 2.8%

WASHINGTON (AFP) – US economic growth in the third quarter was slower than initially estimated, the Commerce Department said Tuesday, cutting its estimate to a 2.8 percent annual pace of expansion. The gross domestic product (GDP) figure was revised down from last month’s estimate of 3.5 percent growth, but was in line with most analyst forecasts, taking into account updated data, notably on consumer spending and trade.

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US third quarter growth revised down to 2.8%