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3 Top Dow Jones Dividend Stocks to Buy for Passive Income in 2026
The Motley Fool· 2026-01-06 09:37
These high-quality, high-yielding dividend stocks are ideal for those seeking sustainable dividend income.The Dow Jones Industrial Average features 30 of the country's most prominent companies. Many of these blue chip stocks pay dividends. Their high quality makes them ideal options for investors seeking to generate sustainable passive income. Three of the Dow Jones' top dividend stocks are Chevron (CVX +5.10%), Coca-Cola (KO 1.71%), and Verizon (VZ 0.72%). They pay higher-yielding and steadily rising divid ...
Could Buying the Vanguard Total Stock Market ETF in 2026 Make You a Millionaire?
The Motley Fool· 2026-01-06 09:11
The magic of compounding can turn steady annual returns of 10% or less into life-changing wealth over the long term.Investors who are looking for a highly diversified exchange-traded fund (ETF) in 2026 might want to consider the Vanguard Total Stock Market ETF (VTI +0.75%). It tracks the performance of the CRSP U.S. Total Market Index, which invests in all 3,498 companies listed on American stock exchanges, so it's basically an entire portfolio all on its own. That means it offers exposure to powerhouse art ...
Artificial Intelligence (AI) Stocks Nvidia and Palantir Have Issued a $3.3 Billion Warning for Wall Street in 2026
The Motley Fool· 2026-01-06 09:06
The people who know Nvidia and Palantir best are speaking volumes with their actions.For only the third time in the S&P 500's existence, Wall Street's benchmark index has rallied at least 15% for three consecutive years. These outsize returns for Wall Street from 2023 through 2025 come courtesy of the artificial intelligence (AI) revolution.Empowering software and systems with the ability to make split-second decisions without the need for human oversight is a technological leap forward that can eventually ...
5 of the Safest Ultra-High-Yield Dividend Stocks You Can Confidently Buy for 2026
The Motley Fool· 2026-01-06 08:51
Core Viewpoint - The article highlights five high-yield dividend stocks with yields ranging from 5.3% to 13.1%, which are positioned to provide significant income for investors in the upcoming year [1]. Group 1: Dividend Stocks Performance - Companies that consistently pay dividends tend to be profitable and provide a transparent long-term growth outlook, historically outperforming non-dividend stocks [2]. - A study by Hartford Funds and Ned Davis Research shows that dividend stocks have more than doubled the average annual return of non-payers (9.2% vs. 4.31%) over a 51-year period while being less volatile [3]. Group 2: Individual Stock Analysis - **Sirius XM Holdings**: Offers a yield of 5.27%, operates as a legal monopoly in satellite radio, and has a strong subscription-based revenue model [6][7][8]. The stock is valued at less than 7 times forward-year earnings, indicating a favorable investment opportunity [9]. - **Enterprise Products Partners**: Provides a yield of 6.78%, has increased its payout for 27 consecutive years, and operates a predictable cash flow model due to long-term fixed-fee contracts [10][11]. The stock is trading at less than 8 times forecast cash flow for 2026, presenting a value opportunity [13]. - **Realty Income**: Delivers a yield of 5.62%, pays dividends monthly, and has a strong track record of increasing payouts [15]. The company focuses on leasing to resilient businesses, and shares are valued at less than 13 times projected cash flow for 2026, offering a 19% discount to its historical average [16][18]. - **PennantPark Floating Rate Capital**: Features a yield of 13.09%, primarily invests in debt with a high weighted-average yield of 10.2% [20][21]. The company is trading at a 13% discount to its book value, indicating a potential value investment [23]. - **Pfizer**: Offers a yield of 6.83%, has seen a decline in share price, which has increased its dividend yield [25]. The company is expected to generate $62 billion in sales by 2025, with a strong oncology pipeline following its acquisition of Seagen [26][27]. Pfizer is valued at 8.4 times forward-year earnings, representing a 14% discount to its historical average [28].
Want More Social Security? 3 Moves to Make in 2026.
The Motley Fool· 2026-01-06 08:48
Core Insights - The article emphasizes the importance of taking specific actions in 2026 to maximize Social Security benefits in retirement Group 1: Boosting Income - Increasing wages can significantly impact Social Security benefits, as the calculation is based on the top 35 years of earnings [3] - Higher wages can also facilitate contributions to retirement accounts like IRAs or 401(k)s, enhancing overall retirement savings [4] - Any taxable income, including gig or freelance work, contributes to future Social Security benefits [5] Group 2: Reviewing Earnings - Regularly reviewing the Social Security earnings statement is crucial to ensure accuracy, as underreported income can lead to reduced benefits [6] - Creating an account on the Social Security Administration's website allows individuals to check their earnings and estimated benefits [5] Group 3: Delaying Claims - Individuals aged 62 or older in 2026 can start receiving benefits, but delaying the claim can increase monthly benefits significantly [8] - Full retirement age is 67 for those born in 1960 or later, and delaying benefits past this age can yield an 8% increase per year until age 70 [8] - For example, delaying from age 67 to 70 could increase the average monthly benefit from approximately $2,000 to nearly $2,500 [9]
The S&P 500 Just Did Something for the 5th Time in 97 Years. Here's What History Says May Happen in 2026.
The Motley Fool· 2026-01-06 08:45
Core Viewpoint - The S&P 500 has achieved significant gains over the past three years, raising questions about its future performance in 2026, with historical patterns showing mixed outcomes following similar streaks [3][10]. Historical Performance - The S&P 500 ended 2025 with a gain of 16.4%, following increases of 23.3% in 2024 and 24.2% in 2023, marking the fifth instance in 97 years where the index has delivered over 16% returns for three consecutive years [3]. - The first occurrence of the index rising by 16% or more for three consecutive years was from 1995 to 1997 during the dot-com boom, with subsequent notable streaks from 1996 to 1998 and 1997 to 1999 [4]. - The next streak of three consecutive years of 16% or more gains occurred two decades later, with returns of 28.9% in 2019, 16.3% in 2020, and 26.9% in 2021 [5]. Future Projections - Historical data shows a mixed record for the S&P 500 following three consecutive years of 16% or more gains, with notable increases in some instances, such as a 26.7% rise in 1998 and a 19.5% rise in 1999 [6]. - However, there have also been declines, such as a 10.1% drop in 2000 following the 1997-1999 streak, and a 19.4% decline in 2022 after the 2019-2021 gains due to rising interest rates [7][9]. - The outlook for 2026 remains uncertain, with potential for continued momentum driven by trends like artificial intelligence, but also risks associated with high valuations, as indicated by the S&P 500 Shiller CAPE ratio being at its highest level since 2000 [10][12]. Long-term Investment Strategy - A more reliable strategy for investors may be to focus on the S&P 500's historical performance over rolling 20-year periods, which has delivered positive total returns 100% of the time, suggesting a favorable outlook for long-term investors [14][15].
Should You Buy Nvidia Stock to Kick Off 2026?
The Motley Fool· 2026-01-06 08:02
Core Viewpoint - Nvidia has experienced significant growth in recent years, particularly in the AI sector, and continues to show strong potential for future performance as it heads into 2026 [1][2]. Group 1: Market Position and Competitive Advantage - Nvidia holds a dominant position in the data center GPU market with a 92% market share, making it difficult for competitors to catch up [5]. - The company has established a competitive moat through its Compute Unified Device Architecture (CUDA), which is widely recognized as the gold standard for GPU programming and is utilized by over 4.5 million developers [10][11]. - CEO Jensen Huang has strategically positioned Nvidia to capitalize on the AI adoption wave since 2013, contributing to its current strength [4]. Group 2: Competition Landscape - Competitors such as Amazon, Alphabet's Google, and Advanced Micro Devices (AMD) are developing their own AI processors, with notable advancements in performance and efficiency [7][8][9]. - Amazon's Trainium 3 chip claims to be four times faster and 40% more energy-efficient than its predecessor, while Google's latest TPU offers peak performance improvements [7][8]. - AMD's MI350 processors provide four times better performance than previous versions, with upcoming MI400 series expected to be highly competitive [9]. Group 3: Valuation and Growth Prospects - Nvidia's stock is currently trading at 46 times earnings, which some investors consider high, but the company's growth trajectory justifies this premium [12][13]. - Over the past three years, Nvidia's stock has risen 1,200%, indicating strong growth that supports a higher valuation [13]. - For fiscal 2026, Nvidia is projected to increase revenue by 63% and earnings per share (EPS) by 59%, with expectations of 50% revenue growth in fiscal 2027 [14].
Prediction: Here Are 3 Stocks Warren Buffett's Successor Greg Abel Is Likely to Buy in 2026
The Motley Fool· 2026-01-06 07:50
Core Viewpoint - Warren Buffett has stepped down from making final investment decisions for Berkshire Hathaway, with Greg Abel now in charge, although Abel is expected to maintain a similar investment strategy to Buffett's [1][2]. Group 1: Potential Investments - Greg Abel is predicted to increase Berkshire Hathaway's stake in Alphabet, as Buffett had previously regretted not investing sooner, and Abel may appreciate the company's strong cash flow and business moats [4][5][6]. - Dominion Energy is seen as a strong candidate for investment due to its regulated monopoly status and attractive dividend yield of over 4.5%, aligning with Buffett's preference for dividend-paying companies [8][11][12]. - Mitsui is likely to see an increase in Berkshire's ownership, as it currently holds a smaller stake compared to other Japanese companies, and both Buffett and Abel have expressed positive sentiments about their investments in Japan [13][15][16].
Bold Prediction: Genius Sports Is About to Explode Higher. Here's the Smoking Gun.
The Motley Fool· 2026-01-06 07:04
Core Insights - Genius Sports is primarily recognized in the sports betting industry but has additional growth opportunities beyond this sector [1][2] - The company operates as a critical data provider in a duopoly with Sportradar, facilitating the betting process without directly booking bets [2] Financial Performance - Genius Sports experienced a volatile end to 2025, with its stock price dropping from a 52-week high of $13.73 to below $9 before recovering [4] - The company forecasts revenue of $1.2 billion by 2028, indicating a compound annual growth rate (CAGR) of 22% over the next three years [5] Market Position - Genius Sports has a market capitalization of $2.7 billion, with a current stock price of $11.26, reflecting a daily change of 4.45% [6][7] - The company's gross margin stands at 21.65%, indicating a healthy profitability level [7] Growth Drivers - The media arm of Genius Sports is expected to grow significantly, with a potential media revenue forecast of $300 million by 2028, which may be conservative [8] - The integration of artificial intelligence (AI) in advertising strategies positions Genius at the forefront of the sports advertising ecosystem [7][8]
Forget DRI Stock and Look at TXRH Instead
The Motley Fool· 2026-01-06 06:49
Core Insights - The restaurant industry faced challenges in 2025 due to inflation and reduced consumer spending, impacting stocks negatively, although Darden Restaurants showed relative strength [1][2] - Darden aims for revenue growth of 8.5% to 9.3%, with Olive Garden focusing on healthier menu options, potentially leading to better stock performance in 2026 [2] - Texas Roadhouse, despite a 6.6% decline in stock value last year, may rebound due to various factors including consumer preferences shifting towards sit-down dining experiences [4][8] Industry Trends - The rise in beef prices significantly affected restaurant chains like Texas Roadhouse, leading to increased operational costs [5] - Consumers' tolerance for higher meal prices has been tested, with the cost of eating out rising nearly double compared to eating at home, which saw a year-over-year increase of 1.9% [6] - The trend of "shrinkflation," where smaller portions are offered at the same or higher prices, has negatively impacted fast-casual restaurant chains [7] Company-Specific Factors - Texas Roadhouse's market cap is approximately $12 billion, with a current stock price of $174.32 and a gross margin of 13.27% [8] - Tax changes related to overtime and tips may indirectly benefit Texas Roadhouse, potentially improving employee retention and attracting new staff [9][10] - Increased retained earnings from overtime workers and larger tax rebate checks could lead to higher casual dining spending in 2026, supporting a rebound for Texas Roadhouse [11]