Starbucks (NASDAQ:SBUX) stock had a fantastic start to 2026, with a 15% gain in the first three weeks of 2026. A fresh spike and a fresh slate in the new year might be what the Seattle-based coffee chain needed. And while famed turnaround artist Brian Niccol has been on the job for quite a while now (just over a year and a quarter), with not much enthusiasm being shown in the stock, I do think that his efforts behind the scenes will, in due time, translate into a recovering share price. Whether 2026 is the ...

Shorting stocks can get retail investors into a boatload of trouble, especially given the potential pain that could be dealt out in the event of a short squeeze, or worse, a meme rally that draws the attention of the folks over on Reddit. After the great Gamestop (NYSE:GME) meme rally, no short-seller is safe, and that makes bearish put options a more compelling option to bet against certain names that one thinks are overdue for a big plunge. Though I would never short a stock based on a list of short ideas ...

The current macro investing climate is one in which investors have plenty to consider. On the one hand, growth stocks continue to outperform as investors look for ways to capitalize on a surprisingly robust bull market. Yes, we've already seen plenty of history made in early 2026, with geopolitical issues and newfound ramped up tariff rhetoric recently sending the VIX back above 20 for the first time in months. However, I'm of the view that the choppiness we could see for the remainder of the year may outpa ...

If you worked for decades, there's a good chance you'll be eligible for Social Security benefits once you retire. Whether those benefits are enough to support your desired lifestyle, however, depends on you. If you're used to bringing home an average salary, you can expect Social Security to replace about 40% of it in retirement — assuming that benefits aren't cut broadly, of course. But in that case, living on Social Security alone would mean taking about a 60% pay cut. And while you may very well see your ...

Core Insights - Emerson Electric has maintained a dividend payment for 68 consecutive years, with a current yield of 1.54% and recent earnings volatility prompting a deeper analysis of its dividend sustainability [1][9] Dividend Overview - The annual dividend is $2.11 per share, with a recent increase of 5.2% in November 2025, marking the company's status as a Dividend Aristocrat for over 25 years [2][9] - The dividend yield stands at 1.54%, reflecting a conservative approach to payout increases with a five-year compound annual growth rate (CAGR) of 1.1% [2][10] Payout Ratios and Cash Flow - The earnings payout ratio for fiscal year 2025 is 35.2%, indicating a healthy level of earnings retained for growth [3][4] - The free cash flow (FCF) payout ratio is 44.7%, with $1.19 billion paid in dividends against $2.67 billion in FCF, leaving $1.48 billion for other uses such as debt reduction and share buybacks [3][4] - Operating cash flow coverage is strong at 2.60 times the dividend, providing a substantial cushion even after accounting for capital expenditures [3][4] Historical Performance and Anomalies - Fiscal year 2023 saw a significant drop in operating cash flow to $637 million and FCF to $274 million, with the dividend exceeding FCF by more than four times due to a strategic spinoff [6][8] - The company managed to maintain its $1.2 billion dividend commitment during this transition year, demonstrating management's resolve [8][9] Future Outlook - Cash flow has normalized in fiscal years 2024 and 2025, with both years generating over $2.6 billion in FCF and healthy coverage ratios between 2.2x and 2.4x [8][9] - The overall assessment indicates that the dividend appears secure, supported by a free cash flow payout ratio of 44.7% and a resilient balance sheet [9]

Core Insights - The importance of saving and investing for retirement is emphasized, highlighting the need for a diverse portfolio to achieve steady growth over time [1][2] Investment Strategies - For those overwhelmed by tracking multiple stocks, focusing on ETFs (exchange-traded funds) is recommended as they provide diversification with a single investment [2] - The Vanguard S&P 500 ETF (VOO) tracks the performance of the S&P 500 index, which includes the 500 largest publicly traded companies by market cap, making it a solid choice for everyday investors [4][5] - The Invesco QQQ Trust (QQQ) tracks the Nasdaq-100 index, focusing on growth-oriented sectors like technology, and has historically delivered strong returns, albeit with higher risk due to concentration in growth stocks [6][7] Combination Benefits - Combining VOO and QQQ can provide a balanced investment strategy, offering stability from VOO and growth potential from QQQ, which may lead to stronger overall returns [8] - This combination simplifies portfolio management compared to investing in individual stocks, reducing the need for frequent rebalancing [9]