Core Viewpoint - The stock market has experienced a significant sell-off, with the Nasdaq Composite entering bear market territory, raising concerns about potential recession due to tariffs [1] Company Overview - Chevron is highlighted as a high-quality dividend stock that investors can buy during the market downturn, with Warren Buffett's Berkshire Hathaway holding a substantial position in the company [2][3] Investment Position - Berkshire Hathaway owns approximately $250 billion in stocks, with Chevron being its fifth-largest holding at 6.5% of the investment portfolio, amounting to about $16 billion [3] - Chevron's position is larger than that of Occidental Petroleum, which is Berkshire's seventh-largest holding [4] Financial Resilience - Chevron's shares fell nearly 20% during the recent market slump, increasing its dividend yield to nearly 5% [5] - The global benchmark price of Brent oil has decreased about 20% this year to around $60 per barrel, impacting oil demand due to tariff concerns [5] Business Model Strength - Chevron is better positioned to withstand lower oil prices compared to many other producers, thanks to its integrated business model and strong balance sheet [6] - The company can generate sufficient cash flow to cover its high-yielding dividend and capital expenditures at an average Brent oil price of $50 per barrel through 2027 [7] Shareholder Returns - Chevron has a history of increasing its dividend payments for 38 consecutive years and has the capacity to repurchase shares within its annual target range of $10 billion to $20 billion [7] - The company is expected to add $10 billion to its annual free cash flow by 2026 at a $70 oil price, and $9 billion at the current $60 price [8] Growth Potential - Chevron's acquisition of Hess for $53 billion in stock is anticipated to enhance its global resources portfolio and extend its production and cash flow growth outlook into the 2030s [9] Conclusion - Chevron is positioned to continue increasing its high-yielding dividend, making it an attractive investment for dividend income amid current market conditions [11]

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that m ...

The stock market sell-off has intensified, with the Dow Jones Industrial Average and S&P 500 both down over 10% from their recent highs and the Nasdaq Composite down over 20% as of this writing-- putting the growth-heavy index in a bear market.But that doesn't mean that all stocks are going down. In fact, fast-food giant McDonald's (MCD -0.25%) hit an all-time high in March and is up slightly year-to-date at the time of this writing.Here's why the Dow Jones component is well positioned to endure tariffs and ...

Core Viewpoint - The recent sell-off in Starbucks stock, which has declined 14.6%, presents a potential buying opportunity despite the company's ongoing challenges and management changes [1][3]. Company Overview - Laxman Narasimhan became the CEO of Starbucks in March 2023, succeeding Howard Schultz [2]. - Starbucks has faced significant struggles, particularly in China, and inflation has severely impacted profitability [3]. Management Changes and Strategies - The announcement of Brian Niccol, CEO of Chipotle Mexican Grill, as the new head of Starbucks led to a 24.5% stock increase, reflecting investor optimism regarding his leadership [3]. - Niccol's new plan includes revamping Mobile Order and Pay, eliminating excessive upcharges for non-dairy milk, and pausing price increases to enhance customer experience [4]. Financial Performance - Starbucks' latest earnings report indicated a 180-basis-point decline in North American margins due to increased labor costs and marketing expenses [6]. - Revenue has stagnated, and operating margins are at their lowest in a decade, excluding pandemic effects [7]. - EPS for fiscal 2024 showed minimal growth compared to pre-pandemic levels, with estimates predicting a decline to $2.94 in fiscal 2025 before rising to $3.64 in fiscal 2026 [8]. Dividend and Growth Potential - Starbucks has increased its dividend for 14 consecutive years, currently yielding 2.5%, which is significantly higher than the S&P 500 average [9]. - The company has a historical compound annual growth rate of 20% in dividends, but recent increases have slowed to 7% [10]. Investment Outlook - Starbucks is viewed as a balanced buy, with investments aimed at improving employee and customer experiences, although fiscal 2025 may be challenging [11]. - The company is considered a good long-term investment for patient investors, despite potential risks from trade tensions, particularly in China [12]. - The current P/E ratio stands at 31.5, which is not considered cheap, but could be reasonable if future EPS estimates are met [13][14].

Core Viewpoint - Zoetis is a leading dividend stock in the animal health sector, known for its robust business model and consistent dividend increases, making it an attractive option for income investors over the next decade [1][9]. Company Performance - Zoetis is the world's leading drugmaker focused on animal health, with a diversified product lineup across various categories, including companion animals and livestock [2]. - In 2024, Zoetis reported a revenue of $9.3 billion, reflecting an 8% year-over-year growth, with earnings per share also increasing by 8% to $5.47 [3]. Challenges and Competition - Following its earnings release, Zoetis' stock experienced a decline due to weak guidance for fiscal year 2025, primarily due to anticipated competition for key products like Apoquel [4]. - The company has faced challenges from new market entrants, such as Elanco Animal Health's Zenrelia, which could impact Apoquel's market share [4]. Long-term Growth Prospects - Despite recent setbacks, Zoetis has a strong track record of revenue growth, outpacing the industry average since 2014, indicating its ability to navigate competitive challenges [5]. - New product approvals, such as Solensia and Librela, are expected to contribute significantly to sales growth in the coming years [6]. - There remains substantial growth potential for Apoquel, with an estimated 13 million dogs not currently being treated, presenting significant sales opportunities [7]. Market Trends - The trend of pet humanization is a critical long-term tailwind for Zoetis, as younger generations increasingly view pets as family members, leading to higher spending on pet care [8]. Dividend Performance - Zoetis has consistently paid and raised its dividends since its IPO in 2013, with a remarkable 502% increase in payouts over the past decade [9]. - Although the current forward yield is 1.2%, slightly below the S&P 500 average of 1.3%, the company's conservative cash payout ratio of 34% suggests potential for future dividend increases [10]. - Despite the lower yield, Zoetis is considered a top income stock for long-term investment [11].

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout. For i ...

Core Viewpoint - Nike's stock has declined significantly from its all-time high in 2021, now trading at multiyear lows, raising concerns about its recovery potential amid various market challenges [1][2]. Group 1: Company Performance and Strategy - Leadership changes and a new corporate strategy focusing on product innovation and key markets in China and North America may aid in Nike's recovery [2]. - Despite challenges such as trade tensions, weak consumer spending, and high interest rates, there are reasons for optimism regarding Nike's near-term performance [3]. - Nike has become a balanced capital allocator, utilizing buybacks and dividends to return value to shareholders, moving away from a heavy reliance on organic growth [5]. Group 2: Dividend and Buyback Programs - Nike has increased its dividend for 23 consecutive years, resulting in a yield of 2.3%, which is higher than the S&P 500 average of 1.3% [6]. - The company is currently offering its highest yield in over 15 years, making it an attractive option for passive income [7]. - In June 2022, Nike's board approved an $18 billion buyback program, with $499 million in stock repurchased in the most recent quarter, totaling 119.3 million shares repurchased for $11.8 billion [9]. Group 3: Financial Health and Future Outlook - Despite slowing growth, Nike's strong cash flow supports its ability to continue raising dividends and buying back stock, indicating financial resilience [10][11]. - The ongoing buyback program suggests management's confidence in the stock's undervaluation, providing a margin for error in capital allocation [12]. - Nike is viewed as an intriguing buy for value investors, although the stock may remain under pressure until there is clear evidence of sales and operating margin improvement [13].

Core Viewpoint - The article discusses the lack of positions held by Parkev Tatevosian, CFA, and The Motley Fool in the mentioned stocks, emphasizing their disclosure policy and potential compensation for promoting services [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool also has no position in any of the stocks mentioned [1] - There is a disclosure policy in place regarding potential compensation for promoting services [1]

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .This question is the stock market equivalent of asking a watch collector what he's wearing, a car collector what his favorite car is, and a cook how he prefers to cook expensive steak.Analyst’s Disclosure: I/we have a beneficial long position in the shares of PEP, CME, CNQ, CSL, ...

It's not too often that pharmaceutical drugs become household names, but that's happening with medicines in the weight loss market. Brands such as Wegovy and Zepbound -- the leading anti-obesity therapies -- are now well known and are generating billions of dollars in annual sales. That's why other drugmakers want to dip their toes in this lucrative and high-growth market.AbbVie (ABBV 1.68%) is one of them. The company, best known for its work in immunology, recently made a move to enter the weight loss spa ...