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The PPI Plot Twist: What It Means For High-Yield Investors
Seeking Alpha· 2025-09-11 11:05
Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at various firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]
All It Takes Is $27,000 Invested in These 2 High-Yield Dividend Stocks and ETF to Help Generate Over $1,000 in Passive Income Per Year
Yahoo Finance· 2025-09-11 09:45
Group 1: Chevron - Chevron's free cash flow (FCF) is projected to cover its current payout of $11.7 billion and provide room for buybacks, making it attractive for income investors [1] - Management anticipates generating an additional $12.5 billion in FCF by 2026, on top of $15 billion in 2024, while Wall Street analysts estimate $24 billion in 2026 and $28 billion in 2027 [2] - The acquisition of Hess is expected to contribute $2.5 billion to FCF by 2026, alongside $10 billion from increased production in Kazakhstan, the Gulf of Mexico, and the Permian Basin [3] - Chevron's diversified asset mix and strong balance sheet enhance its appeal to passive income investors, with the Hess acquisition reducing risk and adding valuable assets [4] Group 2: Coca-Cola - Coca-Cola is facing challenges in the consumer staples sector but is outperforming peers due to its strong supply chain, marketing, and diversified beverage lineup [10] - The company expects to grow non-GAAP earnings per share (EPS) by 3% year-over-year to $2.97, with currency-neutral EPS projected to grow 8% [11] - Coca-Cola maintains a 3% dividend yield and has increased its payout for 63 consecutive years, positioning it as a reliable high-yield dividend stock [12] Group 3: Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF offers a 3.7% distribution yield and is suitable for investors seeking passive income without the complexity of individual stock selection [13] - The ETF has significant exposure to energy stocks, with Chevron and ConocoPhillips as its largest holdings, and also includes consumer staples and healthcare sectors [14] - With a low total expense ratio of 0.06%, the ETF presents a cost-effective option for generating passive income [15]
2 High-Yield Dividends to Buy and Hold Forever
The Motley Fool· 2025-09-11 08:05
Core Viewpoint - The article highlights two dividend-paying stocks, Realty Income and Ford Motor Company, which offer high yields and growth potential for investors seeking stable income and upside opportunities [2][11]. Realty Income - Realty Income is a diversified real estate investment trust (REIT) known for its strong track record of raising dividends, having increased its monthly dividend payment 131 times since its public listing in October 1994 [3]. - The company has raised its dividend for 111 consecutive quarters over more than 30 years, currently offering a yield of 5.5% [3]. - Realty Income possesses a robust balance sheet, allowing for billions in annual acquisitions, including investments in development projects and new property types like data centers and casinos [4]. - The company identifies a $14 trillion investment opportunity in commercial real estate across the U.S. and Europe [4]. - Realty Income's portfolio is well-diversified, with 1,630 clients across 91 industries, and over 90% of its total rent is insulated from e-commerce pressures and economic downturns [5]. - The combination of a strong balance sheet and diversified property portfolio positions Realty Income for continued dividend growth, aiding in wealth accumulation for investors [6]. Ford Motor Company - Ford is a global automaker with a healthy dividend yield of 5.1% and a supplemental dividend, providing additional income to investors [7]. - The company is focusing on electrification in the automotive industry, aiming to turn its unprofitable electric vehicle (EV) business into a profitable segment [9]. - In 2023 and 2024, Ford's Model-e unit incurred losses of $4.7 billion and $5.1 billion, respectively, prompting the company to invest $2 billion in modernizing its Louisville Assembly plant and $3 billion in a new battery plant in Michigan [9]. - Ford is also revamping its assembly line to enhance production efficiency, with ambitions to reduce workstations by 40% and parts by 20%, which could significantly impact profitability [10]. - If successful in making profitable EVs, Ford's improved bottom line could lead to increased dividends over time [10]. Conclusion for Dividend Investors - Both Realty Income and Ford offer high-yielding dividends with potential for stock price appreciation, making them attractive for long-term income investors [11].
STAG Industrial: Proceed With Caution (NYSE:STAG)
Seeking Alpha· 2025-09-10 18:00
Core Insights - STAG Industrial, Inc. is a popular industrial REIT among retail investors due to its monthly dividend payments, which attract many individuals [1] - The company has a modest dividend growth record, indicating a stable but slow increase in dividend payouts [1] Company Overview - STAG Industrial focuses on providing steady income through its dividend payments, which are a key component of its appeal to investors [1] - The company operates in the industrial real estate sector, which has been a focus for many investors seeking reliable income streams [1] Investment Strategy - The article emphasizes the importance of dividend investing as a straightforward path to achieving financial freedom, highlighting its accessibility for individual investors [1] - The author shares insights from their extensive experience in M&A and business valuation, which informs their investment approach [1]
Visa: I Love It Below $300, But The Pullback Is Worth Buying For Long-Term Investors
Seeking Alpha· 2025-09-10 18:00
Visa (NYSE: V ) (NEOE: VISA:CA ) is one of my all-time favorite dividend growth stocks, and I currently own them in my portfolio. In my opinion, I have a great cost basis on the stock withContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veter ...
Artesian Resources (ARTNA) is a Top Dividend Stock Right Now: Should You Buy?
ZACKS· 2025-09-10 16:46
Company Overview - Artesian Resources (ARTNA) is headquartered in Newark and operates in the Utilities sector [3] - The stock has experienced a price change of 4.78% since the beginning of the year [3] Dividend Information - Artesian Resources currently pays a dividend of $0.31 per share, resulting in a dividend yield of 3.71% [3] - The Utility - Water Supply industry's average yield is 2.62%, while the S&P 500's yield is 1.51% [3] - The company's annualized dividend of $1.23 has increased by 4.1% from the previous year [4] - Over the last 5 years, Artesian Resources has raised its dividend 5 times, averaging an annual increase of 4.18% [4] - The current payout ratio is 57%, indicating that 57% of its trailing 12-month EPS is paid out as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 2025 earnings is $2.16 per share, reflecting a year-over-year growth rate of 9.09% [5] Investment Considerations - Artesian Resources is considered a strong dividend play and is currently rated as a Zacks Rank of 3 (Hold) [6] - The company is viewed as a compelling investment opportunity due to its solid dividend and earnings growth potential [6]
This is Why Principal Financial (PFG) is a Great Dividend Stock
ZACKS· 2025-09-10 16:46
Company Overview - Principal Financial (PFG) is based in Des Moines and operates in the Finance sector, with a year-to-date share price change of 3.44% [3] - The company currently pays a dividend of $0.78 per share, resulting in a dividend yield of 3.9%, which is significantly higher than the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.51% [3] Dividend Performance - The current annualized dividend of Principal Financial is $3.12, reflecting a 9.5% increase from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 5.97% [4] - The current payout ratio stands at 40%, indicating that the company distributes 40% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Principal Financial's earnings in 2025 is projected at $8.28 per share, with an expected increase of 18.79% compared to the previous year [5] - Future dividend growth is anticipated to be influenced by earnings growth and the payout ratio [4] Investment Considerations - Principal Financial is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a solid dividend option, particularly appealing to income investors [6]
Relative Strength Alert For Texas Roadhouse
Nasdaq· 2025-09-10 15:32
Core Viewpoint - Texas Roadhouse Inc (TXRH) is currently ranked in the top 25% of dividend stocks, indicating strong fundamentals and attractive valuation, making it a noteworthy investment opportunity [1]. Group 1: Stock Performance - On Wednesday, TXRH shares traded as low as $164.41, entering oversold territory with a Relative Strength Index (RSI) of 27.0, compared to the average RSI of 52.9 for the dividend stock universe [2]. - The recent annualized dividend for TXRH is $2.72 per share, translating to an annual yield of 1.62% based on the recent share price of $168.12 [2]. Group 2: Investment Considerations - The low RSI reading of 27.0 may suggest that the recent selling pressure is waning, presenting potential buying opportunities for bullish investors [3]. - Investors are encouraged to examine TXRH's dividend history to assess the likelihood of continued dividend payments, as dividends can be unpredictable [3].
Warren Buffett Revealed the "Secret Sauce" to Berkshire Hathaway's Amazing Returns, Pointing to 2 Dividend Stocks
Yahoo Finance· 2025-09-10 14:33
Key Points In his 2022 letter to shareholders, Warren Buffett celebrated Berkshire Hathaway’s 3,787,464% return, and noted consistently rising dividends in his “secret sauce.” Buffett singled out Coca-Cola and American Express, which had grown payouts by 836% and 637% since 1994, calling them “highly likely” to continue hiking dividends. These companies are well positioned to keep growing their dividends, thanks to growing earnings, low payout ratios, and shareholder-friendly management. 10 stocks w ...
Why We're Avoiding This 89% Dividend ETF
Forbes· 2025-09-10 12:25
Core Viewpoint - The YieldMax Ultra Income Strategy ETF (ULTY) offers an enticing 89% annualized yield, but this high yield is accompanied by significant risks and underperformance compared to traditional investments like the S&P 500 [4][5][15]. Group 1: Yield and Performance - ULTY's 89% yield is based on the annualized weekly payout for the last week of August, which appears attractive but is misleading due to underlying price volatility [4][6]. - Investors who purchased ULTY at its launch in February 2024 have only seen an 11.5% return, significantly lower than the potential returns from a standard S&P 500 index fund [5][6]. - The fund's price has dropped 71% since its launch, which is a primary reason for the inflated yield [6][7]. Group 2: Investment Strategy and Risks - ULTY employs a covered call strategy, which generates income by selling options on its stocks, but this can limit upside potential in rising markets [8][11]. - The fund has experienced a massive investment turnover rate of 717% within eight months, indicating high management activity and associated costs [10][11]. - The expense ratio for ULTY is 1.3%, which is considered high for an ETF, further impacting net returns for investors [11]. Group 3: Dividend Structure - ULTY shifted from monthly to weekly payouts, which may seem beneficial but complicates cash flow management and increases administrative costs [12][14]. - The weekly dividend has seen fluctuations, with a notable 19.5% reduction from $0.1181 to $0.0949 per share, reflecting the volatility in the fund's yield [14][15].