R E T I R E M E N T I N S I G H T

May 2014

DIVIDENDS, SWEET DIVIDENDS

If you own some dividend stocks, you may be in line for a little extra income in 2014: as S&P Dow Jones Indices recently determined, Q1 dividend payouts are poised to be 22.9% larger than those in Q1 2013.¹

High-dividend stocks may be a boon to retirees seeking additional income, but they are not exempt from the whims of the market. A firm can elect to suspend dividends for a quarter or longer, for example. Some seniors come to view dividend income almost like it was fixed income, assuming it will be steady and reliable quarter to quarter; it may not be. Also, a concentration in dividend stocks may work against efforts to diversify. Dividend payouts tend to come from the blue chips, or at least the manufacturing and utilities sectors; these old-school companies are standbys, yet they aren't the Silicon Valley firms and the small caps that have the potential for rapid and astonishing gains.²

Those cautions aside, retirees love the fact that dividends are taxed at a lower rate than regular income, and their recurrence and potential to grow over time. When the market treads water, dividend stocks have less of a tendency to sink, and when all boats rise, dividends may have the potential to swell - as evidenced by this latest projection of a double-digit raise for certain investors.^2,*

CAN PARKINSON'S & ALZHEIMER'S BE TRACED TO OUR GENES?
Researchers have explored that possibility through the years - and the answer still seems to be no. The two latest significant studies even dismiss the notion of shared genetic characteristics between the two conditions.

One study, which appeared in the August 2013 online edition of JAMA Neurology, was conducted by an international team led by a doctor at the University of Cardiff in Wales. It couldn't find any common genetic variants that increased the risk of Alzheimer's and Parkinson's or of a person with one disease developing the other. It is known that Alzheimer's and Parkinson's are primarily caused by buildup of unique proteins within the brain, and a second study from the University of Pennsylvania (published last July) found proteins common to both diseases, but no particular genetic keys or triggers resulting in them.³

ON THE BRIGHT SIDE
According to Spectrem Group's Retirement Market Insight Report 2014, U.S. household retirement assets stood at $19 trillion, exceeding the total seen before the 2007-09 recession.⁴

"One of the most important ways to manifest integrity is to be loyal to those who are not present. In doing so, we build the trust of those who are present."

- Dr. Stephen Covey

HEALTH TIP
Take two steps that may help you reduce the risk of falls and fractures. One, engage in some kind of weight-bearing exercise - jogging, walking, aerobics. Two, take 800 IU of Vitamin D a day and 1,200-1,500 milligrams of calcium a day, either via food or supplements.

Darryl Lyons may be reached at
210.881.5700 or www.paxfinancialgroup.com

*The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time. Stock investing involves risk including loss of principal. The prices of small cap stocks are generally more volatile that large cap stocks.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

CITATIONS.
1 - americasmarkets.usatoday.com/2014/04/09/do-you-own-stock-youre-getting-a-23-raise/ [4/9/14]

2 - money.usnews.com/money/blogs/on-retirement/2014/04/08/the-pros-and-cons-of-dividend-stocks [4/8/14]

3 - pdf.org/en/science_news/release/pr_1379607636 [10/29/13]

4 - post-gazette.com/business/finance/2014/04/09/Retirement-assets-make-a-comeback/stories/201404090018 [4/9/14]

5 - rollingstoneindia.com/paul-simon%E2%80%99s-restless-journey/ [8/25/11]

Securities offered through LPL Financial, Member FINRA/SIPC.

Investment advice offered through PAX Financial Group, LLC, a registered investment advisor. PAX Financial Group, LLC and LPL Financial are separate entities.