Core Viewpoint - The article highlights a unique investment opportunity in the Cohen & Steers Infrastructure Fund (UTF), which offers a 7.6% dividend yield and is currently trading at a significant discount to its net asset value (NAV), making it an attractive buy for investors looking for income and growth potential [4][5][10]. Group 1: Investment Opportunity - UTF has dropped from trading at a 6% premium to a 7.1% discount to its NAV, indicating a substantial price drop that is unusual for this fund [5][10]. - The fund has provided a total return of 41% since its inclusion in the Contrarian Income Report portfolio in November 2020, alongside a consistent monthly payout [6][7]. - The average premium for UTF over the past year was 1.8%, suggesting a potential price upside of around 10% if the discount reverts to historical levels [7]. Group 2: Market Dynamics - The demand for power, particularly driven by AI data centers in Texas, is expected to surge by 62% by 2030, creating a favorable environment for utility stocks like those held by UTF [9]. - The current market sentiment has led to a discount on UTF, which is attributed to investor behavior rather than poor management or stock selection [10][11]. Group 3: Rights Offering - UTF's management is conducting a "transferable rights offering," allowing existing shareholders to purchase new shares at a discount, which is a rare move for closed-end fund (CEF) managers [11][12]. - The rights offering is expected to create additional cash for the fund, potentially enhancing its investment capabilities and further supporting its value [14].

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Allete, WEC Energy, and Chevron being notable examples offering yields up to approximately 4% [1] Allete - Allete operates in two segments: Regulated Operations and Allete Clean Energy, generating electricity from various sources including coal, biomass, hydro, wind, and solar [2] - The company has raised its dividends for 14 consecutive years, with a recent increase of 3.5% to $0.73 per share, translating to an annual figure of $2.92 per share [3] - Allete's annual revenue as of June 30 was $1.53 billion, and it reported Q2 2025 revenues of $360.30 million, exceeding the consensus estimate of $354.50 million, while EPS was $0.61, below the consensus of $0.85 [4] WEC Energy - WEC Energy Group provides regulated natural gas, electricity, and renewable energy services in the U.S. [4] - The company has increased its dividends for 22 consecutive years, with a recent hike of 6.90% to $0.8925 per share, equating to an annual figure of $3.57 per share [5] - WEC Energy's annual revenue as of June 30 was $9.31 billion, and it reported Q2 2025 revenues of $2.01 billion, with EPS of $0.76, both surpassing consensus estimates [6] Chevron - Chevron is an integrated energy company involved in the production of crude oil, natural gas, and other essential products both domestically and internationally [7]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Fifth Third Bancorp, Merck, and Duke Energy recently announcing dividend hikes [1] Fifth Third Bancorp - Fifth Third Bancorp has increased its dividends for nine consecutive years, with a recent hike of 8% to $0.40 per share, translating to an annual payout of $1.60 per share [3] - The current dividend yield for Fifth Third Bancorp is 3.53% [3] - The company's annual revenue as of June 30 was $8.45 billion, with Q2 2025 revenues of $2.25 billion and EPS of $0.90, both exceeding consensus estimates [3] Merck - Merck has raised its dividends for 14 consecutive years, with the latest increase from $0.77 to $0.81 per share, equating to an annual payout of $3.24 per share [5] - The current dividend yield for Merck is 4.18% [5] - Merck's annual revenue as of June 30 was $63.62 billion, with Q2 2025 revenues of $15.81 billion, slightly missing consensus estimates, while EPS of $2.13 surpassed expectations [6] Duke Energy - Duke Energy has consistently raised its dividends for 18 years, with the latest increase from $1.045 to $1.065 per share, resulting in an annual payout of $4.26 per share [8] - The current dividend yield for Duke Energy is 3.48% [8]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at several 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 [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]

These two AI titans have started paying dividends. Which is the better stock for dividend investors?If you were trying to find dividend stocks before the year 2000, the largest companies in the U.S. were a great place to look. Stalwarts like General Electric (today called GE Aerospace), Pfizer, Walmart, IBM, and the oil companies that would merge to form ExxonMobil were all among the 10 largest companies by market cap, and all paid dividends. Today, on the other hand, the country's largest companies are muc ...

Core Viewpoint - High-yield dividend stocks are attractive investment options, especially when they are undervalued, providing a steady income stream and resilience during economic downturns [1][2]. Group 1: Target (TGT) - Target is the seventh-largest retailer in the U.S., generating over $100 billion in annual sales and operating more than 1,900 stores [3][4]. - The company faces challenges from a weaker consumer spending environment and competition but benefits from the decline of mall-based retailers and a focus on affluent customers with an average household income of $79,000 [4][9]. - Target has successfully adapted to online competition, achieving a 40% sales increase from 2019 to 2022 through in-store renovations and digital growth [5]. - The retailer's strategic locations allow it to fulfill 97% of total sales, with stores located within 10 miles of 75% of the U.S. population [7]. - Target has a 54-year history of dividend growth, with a manageable payout ratio of around 55%, supported by consistent profitability and strong free cash flow [8]. - Despite near-term headwinds, Target's brand strength and upscale shopping experience position it well for long-term growth, trading at a price-to-earnings multiple of 11 and offering a 5.1% dividend yield [9]. Group 2: Ford Motor Company (F) - Ford is currently facing significant challenges, including record recalls, competition in China, tariff uncertainties, and unprofitable electric vehicles [10]. - The company has made progress in reducing its competitive cost gap, closing approximately $1.5 billion in material costs, and has recorded four consecutive quarters of year-over-year cost improvements [11]. - Ford Pro, the commercial sales segment, generated $3.6 billion in earnings before interest and taxes (EBIT) with a 10.7% margin, significantly outperforming the traditional Ford Blue segment [12]. - The Ford Pro segment is expected to enhance its high-margin business through growth in software, physical services, and paid subscriptions, which increased by 24% year-over-year [13]. - Ford trades at a price-to-earnings ratio of 15 and offers a 5.1% dividend yield, with a history of supplemental dividends, making it an appealing investment despite existing challenges [14]. Group 3: Investment Considerations - Both Target and Ford are not without risks, facing headwinds in competitive industries, but they offer attractive dividend yields above 5%, making them potentially worthwhile for income-focused investors [15].

Macro Environment Impact - The macro environment has been challenging for many businesses since the Fed's quantitative tightening in 2022 [1] - Businesses are facing difficulties due to tariffs implemented by President Donald Trump, prompting them to seek ways to navigate these headwinds [1]

Macro Environment Impact - The macro environment has been challenging for many businesses since the Fed's quantitative tightening in 2022 [1] - Businesses are facing difficulties due to tariffs implemented by President Donald Trump, prompting them to seek ways to navigate these headwinds [1]

Core Insights - Income investors prioritize generating consistent cash flow from liquid investments, with dividends being a key focus for returns [2][5] Company Overview - NatWest Group (NWG), headquartered in London, has experienced a price change of 37.17% this year and currently pays a dividend of $0.25 per share, resulting in a dividend yield of 3.57% [3] - The company's dividend yield surpasses the Banks - Foreign industry's yield of 3.16% and the S&P 500's yield of 1.49% [3] Dividend Growth - NatWest Group's current annualized dividend of $0.50 reflects a 13.6% increase from the previous year [4] - Over the past five years, the company has raised its dividend five times, averaging an annual increase of 47.67% [4] - The current payout ratio is 50%, indicating that the company distributes half of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for NatWest's earnings in 2025 is projected at $1.61 per share, representing a year-over-year growth rate of 21.05% [5] Investment Considerations - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses rarely offer dividends [6] - Despite challenges for high-yielding stocks during rising interest rates, NWG presents a compelling investment opportunity as a strong dividend play [6] - The stock currently holds a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Income investors prioritize generating consistent cash flow from liquid investments, with dividends being a significant component of long-term returns [1][2]. Company Overview - Simmons First National (SFNC) is a finance stock that has experienced a price decline of 12.71% this year [3]. - The company currently pays a dividend of $0.21 per share, resulting in a dividend yield of 4.39%, which is significantly higher than the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.49% [3]. Dividend Analysis - The annualized dividend of SFNC is $0.85, reflecting a 1.2% increase from the previous year [4]. - Over the past five years, SFNC has increased its dividend five times, achieving an average annual increase of 5.01% [4]. - The current payout ratio for SFNC is 58%, indicating that the company distributes 58% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year, SFNC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.72 per share, representing a year-over-year growth rate of 21.99% [5]. Investment Considerations - SFNC is positioned as an attractive investment opportunity due to its strong dividend yield and a favorable Zacks Rank of 2 (Buy) [6].