Core Viewpoint - The article emphasizes the importance of incorporating dividend-paying stocks into an investment portfolio, highlighting their ability to provide passive income and mitigate losses during market downturns [2][3]. Group 1: Dividend Stocks Overview - Dividend-paying stocks can provide extra cash flow regardless of market conditions, making them a valuable addition to any portfolio [2]. - Dividend Kings, companies that have increased their dividend payments for at least 50 consecutive years, are highlighted as wise investment choices due to their commitment and ability to sustain dividends over time [3]. Group 2: Company Profiles - **Coca-Cola (KO)**: - The company is the largest non-alcoholic beverage producer globally, with a market cap of $303 billion and a dividend yield of 2.89%, having increased its dividend for over 60 years [7][5]. - Current share price is $70.52, with a dividend payment of $2.04 per share [6][7]. - **Abbott Laboratories (ABT)**: - A healthcare giant with a diversified business model across medical devices, nutrition, diagnostics, and pharmaceuticals, offering a market cap of $218 billion and a dividend yield of 1.88% [10][12]. - The current share price is $125.46, with a dividend payment of $2.36 per share, and has increased its dividend for 53 years [12][13]. - **Target (TGT)**: - The retailer is undergoing a recovery phase with a new CEO and has a market cap of $44 billion, boasting a dividend yield of 4.66% [14][16]. - Current share price is $97.09, with a dividend payment of $4.56 per share, and has increased its dividend for 54 years [18].

Market Performance Summary - U.S. stock markets experienced a strong finish on Black Friday, marking a fifth consecutive day of gains across major indexes, with the S&P 500 rising 0.5% to 6,849.09, the Dow Jones Industrial Average increasing 0.6% to 47,716.42, and the Nasdaq Composite climbing 0.7% to 23,365.69 [1][2] - For the week, the S&P 500 gained 3.7%, the Dow advanced 3.2%, the Nasdaq surged 4.9%, and the Russell 2000 added 5.5% [3] Monthly Performance Insights - November showed mixed results, with the S&P 500 and Dow extending their winning streaks to seven months, while the Nasdaq Composite experienced its first monthly decline since March, falling 1.5% [3] Market Drivers and Sentiment - Market optimism is driven by expectations of a Federal Reserve interest rate cut, with an 83% probability of a December cut being priced in by traders [4] - Recent economic data, including a decrease in initial jobless claims to a seven-month low of 216,000, supports the case for monetary easing [4] Notable Stock Movements - Intel (INTC) was the top performer in the S&P 500, surging 10.2% due to speculation about becoming a foundry supplier for Apple (AAPL) [6] - Nvidia (NVDA) shares declined by 1.8%, concluding November with a double-digit percentage loss, reflecting concerns about competitive threats and high valuations in the AI sector [6] - Eli Lilly (LLY) slipped 2.6% after reaching a historic $1 trillion market capitalization, driven by its weight-loss drugs [6] - Sandisk (SNDK) gained nearly 4% following its debut in the S&P 500, potentially increasing demand from index-tracking funds [6] Retail Sector Performance - Major retailers like Walmart (WMT), Target (TGT), and Amazon (AMZN) finished up approximately 1% to 2% on Black Friday, while Abercrombie & Fitch (ANF) rose 2.9% [7] Upcoming Market Events - Investors are expected to monitor key economic data releases, including Eurozone CPI data and unemployment figures, which will provide insights into the international economy [11] - Earnings announcements from companies like Globus Maritime (GLBS) and Meituan (HKG: 03690) are scheduled, which will offer insights into corporate performance [11]

Group 1: Gemini 3 and AI Landscape - Gemini 3 has been released and is reported to outperform GPT-5 on various benchmarks, indicating a significant advancement in AI technology [1][3] - Alphabet's stock has increased by 5% on the day of Gemini 3's launch and has risen over 100% since the beginning of the year, suggesting positive market sentiment towards the company [3] - The new model features enhanced reasoning, coding, and agentic capabilities, with practical applications such as managing schedules and organizing inboxes [4][5] - Gemini 3 is integrated into core Google products from launch, marking a strategic shift for Alphabet in leveraging AI across its services [4] Group 2: Market Dynamics and Investment Opportunities - The AI sector is seeing significant investments and partnerships, particularly among major players like NVIDIA, Microsoft, and Anthropic, indicating a trend towards consolidation in the industry [8][9] - Memory stocks are performing well, with three out of the top five best-performing stocks in the S&P 500 in 2025 being related to memory technology, driven by the needs of advanced AI models [5][6] - The current landscape suggests that larger, capital-efficient companies will dominate the AI market in the near term, potentially limiting opportunities for smaller competitors [9] Group 3: Retail Sector Insights - Target's stock has experienced a significant drawdown of 66.8%, worse than during the 2009 recession, reflecting ongoing challenges in the retail environment [17] - Target's Q3 earnings showed a year-over-year decline in net sales and profits, with GAAP earnings per share falling by 19%, indicating consumer pressure and selective spending [19] - In contrast, TJX Companies reported strong performance with expectations of 2% to 3% growth in comparable sales, highlighting the variance in retail performance amid economic challenges [19] - Target is exploring digital growth opportunities, including partnerships with OpenAI to enhance customer experience, which may provide some positive outlook for the company [20][22]

Investment Rating - The report maintains a "Buy" rating for Hysan Development (14 HK), Link REIT (823 HK), and Wharf REIC (1997 HK) [5][32][32] Core Insights - Hong Kong's retail sales grew by 2.4% year-on-year in May 2025, marking the end of a 14-month decline, with expectations for a full-year decline of only 3% in 2025 [2][8] - The positive wealth effect from financial markets and an increase in visitor arrivals, which rose by 12% year-on-year to approximately 24 million in the first half of 2025, are expected to support domestic spending [2][4] - Retailers focusing on discretionary spending, such as CTF Jewellery and Sa Sa International, have shown improved sales, while mall operators like Link REIT are expected to face ongoing rental pressures despite some tenant sales resilience [3][4] Summary by Sections Retail Market Overview - Retail sales in Hong Kong turned positive in May 2025 after a prolonged decline, with a 2.4% year-on-year increase, reversing a 2.3% decline in April [2][8] - The retail market is anticipated to stabilize, with a projected narrowing of the sales decline in the second half of 2025 [2][8] Retail Performance by Category - The largest increase in retail spending was seen in Cosmetics, which rose by 8.7% year-on-year, followed by Other categories at 7.6% and Department Store Sales at 6.3% [9][13] - Certain categories, including Jewellery and Fuels, experienced declines, with Jewellery down 3.2% year-on-year [9][13] Company-Specific Insights - Hysan Development's mall portfolio is expected to benefit from the positive wealth effect, with a target price of HKD 18.60, implying a 28.3% upside from the current price [5][32] - Link REIT is projected to maintain a resilient distribution per unit (DPU) supported by lower borrowing costs and its diversified portfolio, with a target price of HKD 45.00, indicating a 6.6% upside [5][32] - Wharf REIC is also rated as a "Buy," with a target price of HKD 30.00, reflecting a 33.0% upside, driven by expected growth in tourist spending [5][32]