The early money flow didn’t go into any of the earnings plays today, with stocks like Abercrombie & Fitch (ANF), Staples (SPLS), and Deere & Co. (DE), all lower following their disappointing results. Meanwhile, General Electric (GE) is higher on news GE Capital will resume paying the parent company a dividend. Wall Street analyst upgrades helped push stocks like Pepsico (PEP) higher, while semiconductor equipment play KLA-Tencor (KLAC) closed down on cautious analyst comments. Finally, shares of J.C. Penney (JCP) got walloped (down 20% or $6.57) on yesterday’s late-day news the company was suspending its dividend.

New Dividend Stock Recommended Today!

We just upgraded a new dividend stock this morning onto our industry-leading Best Dividend Stocks List. Be sure to check out our post detailing the upgrade if you haven’t already.

Seniors Love Facebook, but Will the IPO Shares Love Them Back?

I was reading a CNN Money article recently titled “Seniors Clamoring to Get into Facebook IPO.” With a headline like that, I simply had to read it.

Well, the article went exactly as I expected it to go. Retired individuals are looking to roll the dice on the biggest new tech IPO in several years. People interviewed in the piece were retired doctors, engineers, etc., and all seemed to be in good shape financially. Is it wrong to take a shot at buying Facebook shares on the IPO debut? It’s difficult to say.

On one hand, Facebook could eventually go the way of MySpace and die a slow painful death. Or, the company could emulate Google, aggressively buying new technologies and innovating in its core businesses to solidify its spot atop the social media landscape. Being the dividend lovers we are, we aren’t paying much attention to Facebook since it won’t pay a dividend. However, we realize the new IPO is a “big deal” for a lot of investors.

Just yesterday, General Motors (GM) announced it would stop its marketing initiatives on Facebook, failing to see results to justify the ad spend. Relying simply on advertising (as Facebook does) is a dangerous spot to be in any economic environment. My gut tells me Facebook will attack several revenue opportunities that its large audience provides, but until they do so successfully, the only monetization strategy is indeed in-page advertising for now.

If you have aspirations to buy Facebook shares on Friday, we wish you luck and hope it works out for you. Like I said, it may work for a bit, but then again, it may not. As a trader in my earlier life, when the edge wasn’t there, I’d tend to look elsewhere. Fast forward to less stressful days of long-term dividend investing, and we’ll stick to looking at consistent and dependable dividend-paying businesses that will support our more reliable wealth-building strategy.

Staying In Your Lane

How many times have we seen a baseball player who’s traditionally a singles and doubles hitter try and change his approach to hit more homers? These players often suffer both statistically (lower batting average) and financially (when it comes time to sign a new contract, the underperformance weighs down teams’ offers).

Investors encounter similar dangers when changing their time-tested strategies. Whether it’s trading more frequently or struggling to manage larger share amounts, when people don’t stay in their lanes, underperformance usually ensues.

Just look at the last real estate bubble, when free-flowing capital allowed many investors to get in way over their heads. Even some of the most disciplined and responsible home builders got caught up in the euphoria of runaway home prices. Eventually, so many homes were built that a glut of inventory formed, pulling down the market further and putting plenty of builders out of business.

Today’s investors have much more data at their fingertips, so you’d think they’d make less mistakes. With more knowledge comes more success, right? Well, not necessarily. Now we have more distractions than ever, and human nature often dictates that people simply bite off more than they can chew.

So when the next next euphoric bubble forms, and the lure of quick, easy money becomes too great to ignore, just remember: stay in your lane.

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!

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 Dividend Capture Strategy for Active Investors

We now offer complete U.S. dividend data for all Dividend.com Premium members, so anyone that focuses on “Dividend Capture” trading strategies should have plenty of good stuff to research each day. Just check our enhanced Ex-Dividend Calendar, which is the best in the business, to search for upcoming payouts.

Speaking of dividend capture, Dividend.com Premium members can also access a 9-page report we published on the essential elements to any successful dividend capture strategy. Be sure to check it out here on the Premium homepage.

Dividend.com’s Very Own National TV Commercial Has Debuted

Our first-ever television commercial! has started running on CNBC and the feedback has been wonderful. If you haven’t seen the link yet, you can check out our commercial here.

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.

(PETM)

The firm said maintained its “Equalweight” rating on PETM as well as its $60 price target, which suggests only a small upside to the stock’s Tuesday closing price of $57.63.

A Barclays analyst commented, “We estimate 1Q EPS of $0.75, vs. $0.61 Last Year, above the high end of management’s $0.72-$0.74 guidance and compared to the Street estimate of $0.73. Recall, we raised our 1Q and full year EPS estimates last month following our upbeat meetings with management…We estimate comps of +4.5%, on top of a strong +5.0% LY, which is at the high end of guidance for low to mid single-digit comps.”

The analyst cited several positive factors for the company, including warm weather than has boosted certain product sales, limited competition online, and better operating efficiencies.

PetSmart shares posted modest gains in afternoon trading Wednesday.

The Bottom Line
Shares of PetSmart (PETM) have a .99% dividend yield, based on last night’s closing stock price of $57.63. The stock has technical support in the $53-$55 price area. The shares are trading near all-time highs.

PetSmart, Inc. (PETM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(HD)

The firm maintained its “Overweight” rating on HD as well as its $57 price target, which suggests a 17% upside to the stock’s Tuesday closing price of $48.67.

A Barclays analyst commented, “The Home Depot reported continuing 1Q EPS of $0.65, above our estimate of $0.64 and compared to $0.50 last year. 1Q same-store sales of 5.8%, though slightly below our 6.0% expectation, represented the company’s strongest compare since 1Q04. In the U.S., comps increased an impressive 6.1%.”

Accordingly, the firm lifted its earnings estimates for HD through 2014. Home Depot shares posted modest gains in afternoon trading Wednesday.

The Bottom Line
Shares of Home Depot (HD) have a 2.38% dividend yield, based on last night’s closing stock price of $48.67. The stock has technical support in the $44-$45 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels.

The Home Depot, Inc. (HD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(COH)

The firm maintained its “Overweight” rating on COH and actually raised its price target from $82 to $90. That new rating suggests a massive 35% upside to the stock’s Tuesday closing price of $66.74.

A Barclays analyst commented, “With Coach trading nearly 15% off its recent March highs of $79 (vs. a 5% decline in the S&P), we believe the recent pullback provides a buying opportunity given our confidence in the business as well as the stock’s attractive valuation.”

Coach shares posted modest gains in afternoon trading Wednesday.

The Bottom Line
Shares of Coach (COH) have a 1.80% dividend yield, based on last night’s closing stock price of $66.74. The stock has technical support in the $60-$65 price area. If the shares can firm up, we see overhead resistance around the $72-$75 price levels.

Coach, Inc. (COH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(BA)

The firm also backed its $86-90 price range for BA, suggesting up to a 24% upside to the stock’s Tuesday closing price of $72.58.

A Wells Fargo analyst commented, “On May 14-15, we attended Boeing’s annual investor meeting. Overall, while there was no change to any guidance, the meeting did provide some additional details on a number of key issues. We think Boeing makes a convincing case that most of the work needed to generate strong revenue, earnings and cash flow growth during this cyclical aerospace upturn is within Boeing’s own execution. As investors focus on 2013 and beyond, the primary focus should be on the large free cash flow generation as production rates increase, R&D expenditures moderate, and inventory of completed 787/747s ease. We expect the strength of Boeing’s free cash generation to lead to significant share repurchases and dividends that will be more important for the stock than the declining backlog beyond 2013. However, the return of cash to shareholders is a 2013 event and not a 2012 event.”

Boeing shares rose around 1% in morning trading Wednesday.

The Bottom Line
Shares of Boeing (BA) have a 2.42% dividend yield, based on last night’s closing stock price of $72.58. The stock has technical support in the $68-$70 price area. If the shares can firm up, we see overhead resistance around the $75-$77 price levels.

The Boeing Company (BA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 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.

(PEP)

The firm said it boosted its rating on PEP two notches from “Underperform” to “Outperform” and lifted its price target from $66 to $75. That new target suggests a nearly 11% upside to the stock’s Tuesday closing price of $67.85.

Credit Agricole said it made the move following news on Tuesday that activist investment fund Relational Investors has taken a $600 million position in the company.

PepsiCo shares posted modest gains in premarket trading Wednesday.

The Bottom Line
Shares of Pepsico (PEP) have a 3.17% dividend yield, based on last night’s closing stock price of $67.85. The stock has technical support in the $62-$64 price area. If the shares can firm up, we see overhead resistance around the $68-$70 price levels.

PepsiCo, Inc. (PEP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(DNKN)

The firm said it boosted its rating on DNKN from “Hold” to “Buy,” citing the company’s strong domestic and international growth prospects. Argus also lauded the company’s franchised business model, which brings certain benefits its peers may not have.

Dunkin’ Brands shares rose 46 cents, or +1.4%, in premarket trading Wednesday.

The Bottom Line
Shares of Dunkin’ Brands (DNKN) have a 1.86% dividend yield, based on last night’s closing stock price of $32.30. The stock has technical support in the $28-$30 price area. The stock is trading near all-time highs of $34 a share.

Dunkin’ Brands Group Inc (DNKN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(TJX)

The firm maintained its “Buy” rating on TJX and lifted its price target from $44 to $47. That new target suggests a nearly 11% upside to the stock’s Tuesday closing price of $42.45.

A Deutsche Bank analyst commented, “With 1Q EPS of $0.55 and revised FY plan of $2.27-$2.37 basically in-line with expectations, and given that first-time 2Q plan of $0.47-$0.50 is rightly seen as conservative (planned on 2%-4% comp, but current trends already running at 5%+), investor focus today was on company positioning in to 2H12, 2013, and beyond. On this, mgmt. delivered, with comments and themes that should satisfy short-, medium-, and long-term investors alike.”

The TJX Companies shares posted modest gains in premarket trading Wednesday.

The Bottom Line
Shares of TJX Companies (TJX) have a 1.08% dividend yield, based on last night’s closing stock price of $42.45. The stock has technical support in the $38 price area. The stock is trading near all-time highs.

The TJX Companies, Inc. (TJX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(KLAC)

The firm said it cut its rating on KLAC from “Neutral” to “Underweight” with a $42 price target, suggesting a 15% downside to the stock’s Tuesday closing price of $49.64. JP Morgan noted it expects KLAC’s business to slow during the second half of 2012.

KLA-Tencor shares, which have risen almost 3% year-to-date, were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of KLA-Tencor (KLAC) have a 2.82% dividend yield, based on last night’s closing stock price of $49.64. The stock has technical support in the $44-$45 price area. If the shares can firm up, we see overhead resistance around the $52-$55 price levels.

KLA-Tencor Corporation (KLAC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

(CSCO)

The firm said it boosted its rating on CSCO from “Equalweight” to “Overweight” with a $21.00 price target, suggesting a 27% upside to the stock’s Tuesday closing price of $16.54.

Barclays noted the stock offers “material appreciation if the economic picture is steady, downside protection should it not, and good cash returns either way.”

Cisco shares rose 27 cents, or +1.8%, in premarket trading Wednesday.

The Bottom Line
Shares of Cisco Systems (CSCO) have a 1.93% dividend yield, based on last night’s closing stock price of $16.54. The stock has technical support in the $15 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.

Cisco Systems, Inc. (CSCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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.