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Prediction: Tesla Might Lose This $2.76 Billion Revenue Source That Is Nearly 100% Profit
The Motley Fool· 2025-07-13 09:41
The future of Tesla (TSLA 1.15%) appears very bright. Some experts believe the company's new robotaxi service could add more than $1 trillion in value by the end of 2026. But there's one challenge few investors are paying attention to. This challenge could swiftly eliminate one of Tesla's most profitable revenue sources.Expect Tesla to lose part of this $2.76 billion revenue sourceIn recent years, nearly every electric car stock has benefited from automotive regulatory credits. These credits are earned unde ...
BlackRock Is Tweaking the S&P 500 Formula With Its New ETFs. Should You Be a Buyer?
The Motley Fool· 2025-07-13 08:55
Core Viewpoint - The article discusses the rise of new ETFs introduced by BlackRock to provide investors with alternatives to traditional S&P 500 ETFs, addressing concerns over the heavy concentration of megacap stocks in the index [2][6]. Group 1: ETF Overview - The largest ETFs tracking the S&P 500 include the Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF Trust (SPY), and iShares Core S&P 500 ETF (IVV) [1]. - BlackRock has launched the iShares S&P 500 3% Capped ETF and the iShares S&P 500 ex Top 100 ETF to allow investors to invest in the S&P 500 with reduced exposure to megacap stocks [3][4]. Group 2: ETF Features - The iShares S&P 500 3% Capped ETF limits each holding's weighting to a maximum of 3%, redistributing excess weight to companies below this cap [3]. - The iShares S&P 500 ex Top 100 ETF tracks the S&P 500 performance excluding the 100 largest stocks, allowing for a balanced exposure to megacap stocks [4]. Group 3: Performance and Costs - The iShares S&P 500 ex S&P 100 ETF has an expense ratio of 0.2%, while the iShares S&P 500 3% Capped ETF has a ratio of 0.15%, which can be reduced to 0.09% until April 2026 [7]. - In contrast, the Vanguard 500 S&P ETF has a much lower expense ratio of 0.03% and has shown strong long-term performance, with an average annualized return of 16.6% over the past five years [8]. Group 4: Market Dynamics - The S&P 500's performance is attributed to its market-cap-weighted structure, allowing successful companies to grow and dominate the index [9]. - A study by J.P. Morgan indicated that two-thirds of stocks in the Russell 3000 underperformed the index from 1980 to 2020, highlighting the importance of megacap stocks in driving market gains [10].
How Investing $500 Monthly in This Vanguard ETF Could Create Nearly $5,700 in Annual Dividend Income
The Motley Fool· 2025-07-13 08:11
Core Viewpoint - The Vanguard Energy ETF is highlighted as a strong investment vehicle for generating dividend income, with the potential to create nearly $5,700 in annual dividends through consistent monthly investments over a long period of time [1][5]. Group 1: Investment Strategy - Investing $500 monthly in the Vanguard Energy ETF for 30 years can lead to a total investment of $180,000, assuming a consistent dividend yield of 3.16% [6][5]. - The ETF's current dividend yield of 3.16% is the highest among Vanguard's offerings focused on dividend income [3][4]. Group 2: ETF Composition - The Vanguard Energy ETF comprises 116 energy stocks, with major holdings in companies known for their dividends, such as ExxonMobil, Chevron, and ConocoPhillips [4][3]. - Energy stocks are characterized by their dividend payouts, making the Vanguard Energy ETF an attractive option for dividend-seeking investors [4]. Group 3: Dividend Growth Potential - Historical performance indicates that the Vanguard Energy ETF's dividend has more than quadrupled since its inception in 2004, despite a significant cut in 2015 [9]. - The ETF's current dividend level aligns with its average since launch, suggesting stability and potential for future increases [9]. Group 4: Reinvestment Benefits - Reinvesting dividends can significantly enhance total dividend income over time, potentially exceeding the projected $5,700 [8][11]. - The overall investment value could surpass the initial $180,000 if shares are sold periodically, further increasing total returns [11].
X @Unipcs (aka 'Bonk Guy') 🎒
Unipcs (aka 'Bonk Guy') 🎒· 2025-07-12 16:00
#USELESS coin continues to be among the most traded memecoins on-chainit is the fourth most traded in the last 24 hoursonly three memecoins have more on-chain volume: $TRUMP, #FARTCOIN, and $PENGUvolume does not lie! https://t.co/QaJFebt2YxUnipcs (aka 'Bonk Guy') 🎒 (@theunipcs):#USELESS coin just hit a new ATH in on-chain volumeexceeding $60 million in 24-hour on-chain volume for the very first time everonly two memecoins in the entire crypto space have more volume on-chain than USELESS coin right now: #FAR ...
This Dividend ETF Is Near Its Highest Level Ever -- Is It Too Late to Invest in It?
The Motley Fool· 2025-07-12 13:33
Core Insights - The Vanguard International High Dividend Yield ETF (VYMI) has reached an all-time high and is up nearly 20% in the first half of 2025 [1] - The ETF tracks the FTSE All-World ex US High Dividend Yield index, focusing on international stocks that pay above-average dividends [5] - Despite being at a peak, the ETF remains an attractive investment option compared to U.S. high-dividend counterparts [9] ETF Performance and Composition - The ETF has a dividend yield of approximately 4.1% and a low expense ratio of 0.17% [5] - The portfolio consists of about 1,550 stocks, with 44% in European companies, 26% in developed Asia-Pacific markets, and 21% in emerging markets [6] - The top holdings include well-known companies such as Nestle, Novartis, Toyota, Shell, and Royal Bank of Canada [7] Valuation Metrics - The average P/E ratio of the ETF is 12.0, with an earnings growth rate of 13.7% over the past five years, resulting in a PEG ratio of 0.88 [10] - In comparison, the U.S.-focused Vanguard High Dividend Yield ETF (VYM) has a higher average P/E of 19.1 and a PEG ratio of 1.79 [10] Investment Outlook - The Vanguard International High Dividend Yield ETF is considered to have a significant valuation gap compared to U.S. high-dividend stocks, making it a potentially good value [11] - The ETF has been a top-performing investment in 2025, and there is confidence in adding to the investment at current prices [12]
3 Beaten-Down Dividend Stocks for Patient Investors to Buy in July and Hold for Years to Come
The Motley Fool· 2025-07-12 11:45
Group 1: Watsco - Watsco's stock has increased by 991% over the last 20 years, with a 272% rise in the previous decade and a 154% increase over the last five years, although it has seen a 4% decline in the past year [5] - The current dividend yield for Watsco is 2.7%, but reinvesting dividends over the last 20 years would yield a total return of 2,020% [6] - Watsco is a leading player in the HVAC industry, consistently acquiring small distributors and integrating them to enhance sales and geographic reach [6][7] - The company utilizes technology to support HVAC contractors, improving operational performance and ensuring long-term growth prospects as demand for HVAC servicing remains strong [7][8] Group 2: Occidental Petroleum - Occidental Petroleum's stock has dropped about 29% over the past year, correlating with a 21.5% decline in oil prices [9][11] - Despite the stock decline, Occidental has shown strong performance with an 18.6% year-over-year increase in oil and gas production and generated $1.2 billion in free cash flow [12] - The company has maintained a conservative 20% payout ratio from 2020 to 2024, indicating a secure dividend despite lower energy prices [15] Group 3: Campbell's Company - Campbell's stock is currently at a 16-year low, primarily due to challenges in integrating acquisitions and generating high-margin sales growth [16][19] - The company has made significant acquisitions totaling $9.5 billion, which exceeds its current market cap of $9.3 billion, leading to concerns about overpayment [18] - Despite struggles, Campbell's generates substantial free cash flow that covers its 5.1% dividend yield, and its forward price-to-earnings ratio is significantly lower than its 10-year median [19][20]
The Smartest Vanguard ETF to Buy With $1,000 Right Now
The Motley Fool· 2025-07-12 09:04
Core Viewpoint - A significant shift is anticipated in the stock market, suggesting a potential transition from growth stocks to value stocks as the latter are currently undervalued and may outperform in the near future [4][7][8]. Group 1: Market Trends - Growth stocks have consistently outperformed value stocks since the late 1990s, driven by technological advancements and low interest rates [4][6]. - Morningstar's Q3 2025 Stock Market Outlook indicates that value stocks are undervalued relative to the broader market, presenting a potential investment opportunity [7]. - U.S. value stocks are currently trading at a price-to-earnings ratio of 10, significantly lower than the 30 for growth stocks, indicating a potential for higher returns [8]. Group 2: Performance of Key Stocks - The "Magnificent Seven" stocks, which have driven market gains, are now lagging behind the broader market, suggesting a possible shift in market leadership [8][11]. - Major growth stocks like Apple, Alphabet, and Tesla have seen declines year-to-date, while the S&P 500 has increased by 6%, indicating a potential trend reversal [11]. Group 3: Economic Factors - Concerns about economic slowdown and market crashes are rising among U.S. consumers, with 46% expressing serious concerns, which could disproportionately affect overvalued growth stocks [13][14]. - The Federal Reserve's sustained high interest rates are impacting growth companies more than value companies, which are better suited to navigate such conditions [15]. Group 4: Investment Strategy - The Vanguard Value ETF offers a trailing dividend yield of just under 2.2%, providing a reliable income stream for investors amid less exciting growth potential [17]. - Investors are encouraged to consider a balanced portfolio that includes both value and selective growth investments, allowing for defensive positioning while still pursuing growth opportunities [18][19].
X @wale.moca 🐳
wale.moca 🐳· 2025-07-12 09:00
Solid move in NFTs in the last 24 hours.Led by Pudgy Penguins (+25%), the other major ecosystems are also up, Bored Apes over 11 ETH, Azuki back to 2 ETH.Looks even better in USD, NFTs are a leveraged bet on ETH:1) Pudgy Penguins: $24k USD -> $35k USD.2) BAYC: $27k USD -> $34k USD.3) Azuki: $4.5k USD USD-> $6k USD.Even Ordinals (Bitcoin NFTs) are showing some strength here, Taproot Wizards are up from $16k USD to $22k USD, which is higher than mint price ...