Core Viewpoint - There are still attractive investment opportunities in dividend stocks, particularly in international markets, despite the S&P 500 reaching new highs [1][2]. Group 1: Investment Opportunities - The Vanguard International High Dividend Yield ETF (VYMI) is highlighted as a strong option for dividend investors, even though its shares are near all-time highs [2]. - This ETF tracks an index of international stocks that pay above-average dividends, with a low expense ratio of 0.17% [3]. - The fund provides broad exposure to over 1,500 stocks from both emerging and developed markets, with no single stock exceeding 1.8% of the portfolio [4]. Group 2: Performance Metrics - The average stock in the VYMI portfolio trades at a price-to-earnings (P/E) ratio of 13.5, with an average earnings growth rate of 12.8% annually [7]. - In comparison, the U.S.-focused Vanguard High Dividend Yield ETF (VYM) has a P/E ratio of over 20 and a slower earnings growth rate of 11.6% [7]. - The current dividend yield for the Vanguard International High Dividend Yield ETF is approximately 3%, making it a potential addition for diversification and income [7].

Core Viewpoint - General Motors reported strong profitability and provided a better-than-expected outlook, despite missing revenue expectations in the fourth quarter [1][2]. Financial Performance - GM's adjusted EPS of $10.60 exceeded the high end of its own guidance range, and EBIT and automotive free cash flow were better than expected, even after accounting for one-time charges related to its EV strategy [5][6]. - The company announced a 20% increase in the quarterly dividend and a new $6 billion share repurchase authorization, which represents about 8% of its outstanding shares at the current price [6]. Future Outlook - Management's initial guidance for 2026 projects earnings of $11 to $13 per share, indicating a potential 13% growth over 2025 [7]. - CEO Mary Barra highlighted that improvements in battery technology will enable quicker profitability for electric vehicles, with EV sales increasing by 48% year over year [8]. - The company anticipates a 40% rise in deferred revenue from software and services to $7.5 billion by 2026, which are high-margin revenue streams [9]. Competitive Position - GM's stock has risen over 50% in the past year but remains relatively cheap, trading at just 7 times the company's 2026 EPS guidance [11]. - The company is executing its electric vehicle strategy effectively, showing a clear path to profitability, and plans to launch advanced features like eyes-off autonomous driving by 2028 [12]. Investment Potential - GM's strong performance and future growth prospects make it a significant position in investment portfolios, with expectations for continued upside potential [13].

Core Viewpoint - Kimberly-Clark is positioned as a deep value stock for income investors in 2026, especially with its strong dividend yield of 5% and a history of consistent dividend increases [3][9][19] Company Overview - Kimberly-Clark specializes in paper products, including brands like Kleenex, Huggies, and Scott, holding leading market shares in 70 countries [4] - Approximately two-thirds of its sales are generated in North America, with the remainder coming from international markets [4] Financial Performance - In 2025, Kimberly-Clark achieved 1.7% organic sales growth, driven by a 2.5% increase in volume, despite a 0.9% decrease in price [6] - The company reported gross margins of 36%, flat adjusted operating profit, and a 3.2% increase in adjusted earnings per share (EPS) [6] - For 2026, Kimberly-Clark is guiding for 2% organic sales growth and flat adjusted EPS, with a mid-to-high single-digit increase in adjusted operating profit [6] Dividend and Cash Flow - Kimberly-Clark raised its dividend for the 54th consecutive year, indicating a commitment to returning value to shareholders [3][10] - The company's earnings and free cash flow exceed its dividend expense, suggesting that the dividend is sustainable without relying on debt [10] Acquisition Strategy - The acquisition of Kenvue, a consumer health company, is expected to generate $2.1 billion in annual synergies, primarily from cost reductions [12][15] - This acquisition aligns with Kimberly-Clark's strategy to expand its product offerings and cover a broader range of consumer needs [13][15] Market Position and Valuation - Kimberly-Clark's stock is currently trading at 13 times forward earnings, making it an attractive option for value investors [18] - The stock has experienced a sell-off, leading to a higher dividend yield, which is appealing for income-focused investors [9][19]

Core Viewpoint - GPM Growth Investors, Inc. has acquired a significant position in the Invesco BulletShares 2030 Corporate Bond ETF, indicating a strategic move towards investment-grade bonds with a defined maturity and predictable income streams [1][2][6]. Fund Overview - The Invesco BulletShares 2030 Corporate Bond ETF targets investment-grade corporate bonds maturing in 2030, appealing to investors seeking defined maturity and predictable income [6][8]. - The fund has an asset under management (AUM) of $2.27 billion and offers a yield of 4.58% [4]. - As of January 29, the ETF's share price was $16.90, reflecting a 3% increase over the past year [3][4]. Recent Transaction - GPM Growth Investors added 440,939 shares of the ETF, valued at approximately $7.46 million, which represents 2.91% of the fund's 13F reportable assets under management as of December 31 [2][3]. - The transaction reflects a deliberate strategy to lock in income while maintaining flexibility in a fluctuating interest rate environment [7][9]. Investment Strategy - The ETF employs a rules-based index and sampling methodology to balance diversification and tracking efficiency, aiming to hold at least 80% of assets in securities from the target index [8]. - The fund is structured as a non-diversified ETF, providing exposure to a defined-maturity bond portfolio [8]. Market Positioning - Defined-maturity bond ETFs like this one are increasingly viewed as essential components of fixed income allocations, offering higher yields than short-term cash alternatives while limiting duration risk [9][11]. - The fund's approach allows for predictable cash flow over time, converting price volatility into stable income, which is appealing for long-term investors [10][11].

Core Insights - The iShares Silver Trust (SLV) and the Global X - Silver Miners ETF (SIL) provide different investment approaches to the silver market, with SLV tracking physical silver prices and SIL investing in silver mining companies [1][8]. Cost & Size - SLV has a lower expense ratio of 0.50% compared to SIL's 0.65%, making it more cost-effective for investors [3]. - As of January 26, 2026, SLV has a one-year return of 268.4% while SIL has a return of 247.4% [3]. - SLV has assets under management (AUM) of $38 billion, significantly larger than SIL's $5 billion [3]. - SIL offers a dividend yield of 1.18%, while SLV does not pay dividends [4]. Performance & Risk Comparison - Over five years, SLV has a maximum drawdown of -39.33%, while SIL has a higher drawdown of -55.79% [5]. - An investment of $1,000 in SLV would grow to $4,384 over five years, compared to $2,810 for SIL [5]. Portfolio Composition - SIL invests in 39 global silver mining stocks, focusing entirely on the Basic Materials sector, with major holdings in Wheaton Precious Metals, Pan American Silver, and Coeur Mining [6]. - SLV provides pure exposure to silver prices, with all assets linked to Real Estate as a proxy for physical silver holdings [7]. Investment Implications - SIL's focus on mining companies allows for potential higher returns when these companies perform well, but it also introduces greater risk if they underperform [9]. - SLV offers a straightforward investment in silver prices without the complexities associated with mining operations and equity market fluctuations [9]. - The choice between SLV and SIL depends on investor objectives, with SLV suitable for those seeking direct silver price exposure and SIL for those interested in the broader silver market including mining companies [10].

The recent share price drop in Microsoft stock looks like an overreaction.The share price of Microsoft (MSFT 0.74%) sank despite the tech giant reporting strong quarterly results for its fiscal 2026 second quarter. The drop appears to be largely attributed to higher operating expense guidance and its dependence on OpenAI. The stock is now down slightly over the past year, as of this writing.Let's dig into the company's report and prospects to see if this dip is a buying opportunity.NASDAQ : MSFTMicrosoftTod ...

Core Insights - InterContinental Hotels Group (IHG) has successfully rebounded from the COVID-19 pandemic, focusing on expanding its Holiday Inn brand globally [1] - The hotel industry remains competitive, with rivals like Marriott and Hilton also aiming to capture market share in rapidly growing regions [2] Expansion Strategy - China is identified as a crucial market for InterContinental's growth, with over 1,400 existing or planned hotels across more than 200 cities [3][4] - The company plans to broaden its presence beyond tier-1 cities in China, enhancing its footprint in both mainland China and Taipei [4] Technological Advancements - InterContinental has appointed Wei Manfredi to lead its artificial intelligence strategy, aiming to improve IT architecture and form partnerships with tech companies [5] - AI will play a role in maximizing revenue for hotel property managers and enhancing the traveler experience through AI-powered applications [6] Market Position and Growth Potential - InterContinental's midmarket reputation in the Americas presents opportunities for improvement, particularly in luxury and premium segments [7] - Despite a recovery in travel stocks, InterContinental's performance has lagged behind competitors, indicating potential for growth initiatives to enhance shareholder returns [8]

Core Insights - USA Rare Earth is establishing a mine-to-magnet rare-earth supply chain in the U.S., a significant move given the country's limited control over global rare-earth reserves [1][2] - The U.S. government has issued a letter of intent to provide USA Rare Earth with approximately $1.6 billion, which includes a $1.3 billion loan and $277 million in federal funding [3] - The company has seen its stock price increase over 80% this year, but future success will depend on effective execution of its plans [3] Company Overview - USA Rare Earth controls mining rights to the Round Top deposit in West Texas, recognized as one of the most significant rare-earth deposits in the U.S., which also contains lithium and gallium [4] - The company is constructing a manufacturing facility in Stillwater, Oklahoma, aimed at producing sintered neodymium magnets at scale, expected to be operational by the first half of 2026 [5] Market Position - With its mining site in Texas and manufacturing facility in Oklahoma, USA Rare Earth is positioned to be one of the few fully integrated rare-earth companies outside of China, optimizing the entire process from extraction to production [7] - The company has developed extraction and separation practices at its Colorado lab that could save tens of millions in costs, crucial for a capital-intensive industry [8] Financial Outlook - USA Rare Earth is currently pre-revenue, and its timeline for generating meaningful revenue remains uncertain, with inherent execution risks in both mining and manufacturing [10] - If market dynamics for rare-earth materials remain stable over the next decade, investing in USA Rare Earth while it is priced as an early-stage start-up could yield long-term benefits [11]

Core Insights - The Vanguard Total Stock Market ETF (VTI) and the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) serve as foundational investment options for diversified exposure to the U.S. stock market [1][8] Cost and Size Comparison - Both VTI and SPTM have an identical expense ratio of 0.03% and similar dividend yields, making them equally affordable for investors [3] - VTI has a significantly larger asset under management (AUM) of $571 billion compared to SPTM's $12 billion, indicating greater liquidity for VTI [3][10] Performance and Risk Analysis - Over the past year, VTI has returned 13.55% while SPTM has returned 13.45%, showing nearly identical performance [3] - The maximum drawdown over five years for VTI is -25.36%, while SPTM's is -24.15%, indicating comparable risk profiles [4] Holdings and Sector Allocation - SPTM tracks the S&P Composite 1500 Index and includes 1,511 U.S. stocks, with a sector allocation of 34% in technology, 13% in financial services, and 11% in consumer cyclical [5][6] - VTI tracks the CRSP US Total Market Index and holds over 3,500 stocks, with a similar sector allocation of 33% in technology, 13% in financial services, and 11% in consumer cyclical [7] Investment Implications - Both ETFs provide broad, low-cost access to the U.S. stock market, with VTI offering more diversification due to its larger number of holdings [9] - The choice between VTI and SPTM may depend on investor preference for fund size or index coverage, as both are strong options for core U.S. equity holdings [10]

Core Insights - Coronation Fund Managers increased its stake in MercadoLibre by 53,352 shares, valued at approximately $112.06 million, reflecting a significant investment in the company [2][3] - The total value of Coronation's position in MercadoLibre reached $285.59 million, marking an increase of $78.93 million from the previous filing, driven by both new purchases and share price appreciation [2] - MercadoLibre's shares have appreciated by 19.7% over the past year, outperforming the S&P 500 by 4.68 percentage points [3] Company Overview - MercadoLibre operates a leading e-commerce and fintech platform in Latin America, with a market capitalization of $114.02 billion and a revenue of $26.19 billion over the trailing twelve months [4][5] - The company generates revenue through transaction fees on its marketplace, financial services, logistics, and value-added services for merchants and consumers [8] - MercadoLibre's competitive advantage lies in its integrated ecosystem of online marketplaces, digital payments, credit, and logistics, tailored to the Latin American market [5] Financial Performance - The company reported a net income of $2.08 billion over the trailing twelve months [4] - Revenue growth remains robust, with a year-over-year increase of 39% in the third quarter, alongside expanding margins and improved logistics efficiency [10] Investment Implications - The increased stake by Coronation Fund Managers indicates a strong conviction in MercadoLibre's long-term growth potential, as it now represents 12.81% of their $2.23 billion reportable assets under management [3][9] - The fund's strategy includes pairing MercadoLibre with other emerging-market growth companies, suggesting confidence in the company's competitive position despite its size [11]