After gapping down at the open the market found support at its 10 day moving average and rallied back to close higher on the day. Despite some sluggish price action the last few weeks the market continues to slowly move up.
Highlight article of the day today comes from Bespoke commenting on Dividend stock performance thus far in 2012 (emphasis mine):
So far in 2012, high yielding stocks have significantly underperformed. This is in stark contrast to 2011 when the highest yielding stocks beat the market by a wide margin.
...the average stock in the S&P 500 that pays no dividend is up 15.75% year to date. Stocks that pay a dividend are up an average of 9.14%. The 200 highest yielding stocks in the index are up an average of 5.7%, while the 100 highest yielders are up just 2.17%. The 50 highest yielders in the S&P are essentially flat year to date, and the 25 highest yielders are actually down an average of 2.13%.
Dividend stocks have always seemed to peak my interest, however I have never took the time to build a portfolio around them or dedicate a portion of my investment strategy to maximizing their yields. While using such a strategy last year would have proven successful, the results thus far this year are unimpressive.
Updated market analysis below. Stay frosty (sharp) out there.