Day: October 13, 2024

There’s no wrong way to put your money to work on Wall Street, but some methods produce more reliable gains than others. If you’re looking for a relatively safe and easy way to grow the stream of income you’ll have to work with during your retirement years, buying dividend-paying stocks and holding them for long periods is a terrific option.

During the 50-year period that ended in 2023, dividend-paying stocks in the S&P 500 index returned 9.17% annually on average. That’s more than double the return produced by their non-dividend-paying cousins. During the same period, the average dividend non-payers in the benchmark index returned just 4.27% annually, according to Ned Davis Research and Hartford funds.

You don’t need to be rich to put your money to work for you. At the moment, shares of AT&T (NYSE: T), Hercules Capital (NYSE: HTGC), and Pfizer (NYSE: PFE) offer dividend yields of 5% or better, and you can buy a share of all three with less than $100. Adding them to a portfolio now gives you a good chance to outperform the market while they beef up your passive-income stream.

1. AT&T

AT&T lowered its dividend payout in 2022 to adjust for the sale of its unpredictable media assets. Now that it’s strictly a telecommunications business, the cash flows it uses to make dividend payments should be extra reliable. At recent prices, the stock offers a 5.2% dividend yield.

Traditional-wireline subscriptions are still shrinking, but this headwind is easily overcome by demand for services that run on its 5G network and a growing web of fiber-optic cables. In the second quarter, mobility-service revenue rose 3.4% year over year, and this isn’t the only operation driving growth.

The three-month period ended June 30 was the 18th consecutive quarter in which AT&T added over 200,000 new fiber-internet subscribers. Late last year, the company also launched a fixed-wireless service for folks who aren’t located next to fiber optic cables. As a result, Q2 consumer-broadband sales rose 7% year over year.

At $2.7 billion in Q2, consumer broadband is responsible for less than 10% of total revenue. AT&T is one of just three telecom companies with a nationwide 5G network, so investors can reasonably rely on its consumer-broadband business to drive growth for many years to come.

2. Hercules Capital

Hercules Capital is a business development company (BDC), which means it can avoid income taxes by giving nearly all of its earnings to shareholders as a dividend payment. At recent prices, the stock’s regular distribution offers a big 8% yield.

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Hercules also offers a supplemental dividend that it set at $0.32 per share this year. If next year’s supplemental dividend remains unchanged, investors who buy this stock at recent prices will receive a 9.7% yield.

Most BDCs originate relatively high-interest loans to established mid-sized businesses that already earn money. Hercules Capital takes a riskier approach to financing by engaging start-ups in the life science and technology industries before they have any recurring revenues to report.

In isolation, the bets Hercules makes are extremely risky. The potential payoffs are so large, though, that the company can report strong-earnings growth if just a fraction of its investments succeed.

Hercules has raised or maintained its regular distribution since 2010, and continued movement in the right direction seems likely. In the first half of 2024, the BDC reported $1.07 billion in total-gross funding, which was 28% more than the previous-year period.

3. Pfizer

Sales of Pfizer’s COVID-19 vaccine and antiviral treatment broke records regarding its rate of growth and decline. Sales of Comirnaty and Paxlovid shot up to a combined $56.7 billion in 2022. Less than a year and a half later, sales of the same two drugs collapsed to an annualized $1.8 billion.

Don’t let its recent ups and downs confuse you. Pfizer is a reliable dividend payer that has raised its payout every year since 2009. At recent prices, it offers a 5.7% yield that will be easier to predict now that sinking sales of its COVID-19 products are responsible for less than 3% of total revenue.

Pfizer’s dividend payout is supported by one of the largest catalogs of drugs with patent-protected market exclusivity. In the first half of 2024, a dozen of its products grew sales by a double-digit percentage compared to the previous year period.

One of the investments Pfizer made with its pandemic-related earnings haul was the $43 billion acquisition of cancer drug developer Seagen. The purchase gave Pfizer access to four commercial-stage treatments, including Padcev. In late 2023, Padcev became a chemotherapy-free option for newly diagnosed bladder cancer patients. As such, sales are expected to reach $8 billion annually by 2030.

Padcev is one of several blockbuster drugs that could help Pfizer continue its dividend-raising streak. Adding some shares to a diverse portfolio now seems like the right move.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,022!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,329!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $393,839!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 7, 2024

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.

3 Reliable Dividend Stocks With Yields Above 5% That You Can Buy With Less Than $100 Right Now was originally published by The Motley Fool

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Real estate investment trusts (REITs) offer compelling opportunities for investors looking to supplement their monthly income. REITs own, operate or finance income-generating real estate, allowing individuals to invest in various real estate types without having direct ownership or management responsibilities.

REITs must also distribute a large percentage of their taxable income to shareholders as dividends, often resulting in hefty yields.

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If you’re an income-seeking investor, here are three high-yielding REITs that pay monthly dividends.

Whitestone REIT

Whitestone REIT (NYSE:WSR) owns and manages a portfolio of open-air retail centers. As of June 30, its portfolio comprised 57 properties containing approximately 5.1 million square feet of gross leasable area. Its properties are located in some of the fastest-growing markets in the U.S., including Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.

Whitestone pays a monthly dividend of $0.04125 per share, which equates to an annualized dividend of $0.495 per share and gives its stock a yield of about 3.7% at the time of this writing.

Whitestone has also been delivering dividend growth to its shareholders. It has raised its annual dividend payment for two consecutive years and its 3% hike in March puts it on pace for 2024, marking the third consecutive year with an increase.

Agree Realty Corporation

Agree Realty Corporation (NYSE:ADC) owns and manages a portfolio of retail properties, including community shopping centers, warehouse clubs, convenience stores, quick-service restaurants and car dealerships. As of June 30, its portfolio comprised 2,202 properties containing approximately 46 million square feet.

Agree Realty pays a monthly dividend of $0.25 per share, which equates to an annualized dividend of $3.00 per share and gives its stock a yield of about 4.05% at the time of this writing.

Like Whitestone, Agree Realty has shown a dedication to growing its dividend. It has raised its annual dividend payment for 11 consecutive years and recent hikes, including its 2.9% hike in April, have it on pace for 2024 to mark the 12th consecutive year with an increase.

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Realty Income

Realty Income (NYSE:O) is the world’s seventh-largest REIT by market capitalization. As of June 30, its portfolio comprised 15,450 properties containing approximately 335 million square feet.

Realty Income pays a monthly dividend of $0.2635 per share, which equates to an annualized dividend of $3.162 per share and gives its stock a yield of about 5.1% at this time.

In addition to offering a high yield, Realty Income is one of the best sources of dividend growth in the REIT industry. It has raised its annual dividend payment for an impressive 29 consecutive years. Recent hikes, including its 0.2% increase in September, have it on track for 2024 to mark the 30th consecutive year with an increase.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

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This article October’s Top Dividend Stocks for Retirees Seeking Reliable Monthly Income originally appeared on Benzinga.com

PORTLAND, Ore. (AP) — Oregon’s Multnomah County, home to Portland, has added the state’s largest natural gas utility to its $51.5 billion climate lawsuit against fossil fuel companies over their role in the region’s deadly 2021 heat- dome event.

The lawsuit, filed last year, accuses the companies’ carbon emissions of being a cause of the heat-dome event, which shattered temperature records across the Pacific Northwest. About 800 people died in Oregon, Washington state and British Columbia in the heat wave, which hit in late June and early July 2021.

An amended complaint was filed this week, adding NW Natural to a lawsuit that already named oil giants such as ExxonMobil, Chevron and Shell as defendants. It accuses NW Natural, which provides gas to about 2 million people across the Pacific Northwest, of being responsible for “a substantial portion” of greenhouse gas emissions in Oregon and deceiving the public about the harm of such emissions.

NW Natural said it can’t comment in detail until it has completed reviewing the claims.

“However, NW Natural believes that these new claims are an attempt to divert attention from legal and factual laws in the case. NW Natural will vigorously contest the County’s claims should they come to court,” it said in an emailed statement.

According to the Center for Climate Integrity, it is the first time a gas utility has been named in a lawsuit accusing fossil fuel companies of climate deception. There are currently over two dozen such lawsuits that have been filed by state, local and tribal governments across the U.S., according to the group.

The amended complaint also added the Oregon Institute of Science and Medicine, which describes itself as a research group on its website, to the lawsuit. The group has opposed the concept of human-caused global warming. A request for comment sent Friday to the email address on its website was returned to sender.

Multnomah County is seeking $51.5 billion in damages, largely for what it estimates to be the cost of responding to the effects of extreme heat, wildfire and drought.

“We’re already paying dearly in Multnomah County for our climate crisis — with our tax dollars, with our health and with our lives,” county chair Jessica Vega Pederson said in a statement. “Going forward we have to strengthen our safety net just to keep people safe.”

After the initial complaint was filed last year, ExxonMobil said the lawsuit didn’t address climate change, while a Chevron lawyer said the claims were baseless.

When contacted for comment Friday, Shell said it was working to reduce its emissions.

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“Addressing climate change requires a collaborative, society-wide approach,” it said in an emailed statement. “We do not believe the courtroom is the right venue to address climate change, but that smart policy from government and action from all sectors is the appropriate way to reach solutions and drive progress.”

The case is pending in Multnomah County Circuit Court.

Netflix (NFLX) stock has received a flurry of price-target increases ahead of the streaming video leader’s third-quarter report next week.

On Friday, brokerage firms Guggenheim Securities and Macquarie Capital raised their targets for Netflix stock.

Earlier in the week, Netflix stock scored price-target hikes from Deutsche Bank, Morgan Stanley, Oppenheimer, Piper Sandler and TD Cowen.

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“While Netflix shares are up 56% year-to-date compared to 22% for the S&P 500, we continue to see attractive shareholder returns over the next 12 months,” Guggenheim analyst Michael Morris said in a client note.

Positive catalysts for Netflix include continued global subscriber growth and accelerating advertising revenue growth.

Morris reiterated his buy rating on Netflix stock and upped his price target to 810 from 735.

On the stock market today, Netflix stock slid 1% to close at 722.79.

Netflix is continuing to grab viewership share, Morris said. Popular Netflix content in the third quarter included “The Perfect Couple,” “Monsters: The Lyle and Erik Menendez Story” and season four of “Emily in Paris.”

Netflix Stock Is A Recent Breakout

Meanwhile, investor focus is shifting from subscriber gains to expected price increases, Jefferies analyst James Heaney said in a client note Friday.

Impending price increases and a strong content slate in the second half of 2024, including Christmas NFL games and “Squid Game” season two, “keep us bullish,” Heaney said.

Heaney rates Netflix stock as buy with a price target of 780.

Netflix will release its third-quarter results late Thursday. Analysts polled by FactSet expect Netflix to earn $5.09 a share on revenue of $9.77 billion in the third quarter. That would translate to year-over-year growth of 36% in earnings and 14% in sales.

Further, analysts expect the internet television network to add 3.9 million subscribers worldwide for a total of 281 million subscribers.

Netflix stock has been trading in a tight range since it broke out of a cup base at a buy point of 697.49 on Aug. 20, according to IBD MarketSurge charts. It is in the 5% buy zone of that breakout, based on IBD trading guidelines.

Netflix stock is on the IBD 50 list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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Sometimes Wall Street is slow to award companies the valuation they deserve based on positive trends happening in the business. Investors who buy reasonably valued stocks ahead of sharp increases in their earnings can see substantial gains on their investment.

To aid your search, a group of Motley Fool contributors recently selected three stocks they believe can double in value, or get close to it, within two years. Here’s why they like Carnival (NYSE: CCL), Pinterest (NYSE: PINS), and Opendoor Technologies (NASDAQ: OPEN).

Carnival is still rebounding

Jennifer Saibil (Carnival): Carnival has made a sweeping rebound from its pandemic lows, moving from meme stock to top stock. However, it remains down 64% from its highs over the past five years. There are still a few outstanding issues that are blocking it from returning to its previous levels, but when they are resolved, Carnival should be a standout stock.

One is profitability. Although Carnival’s revenue is reaching record levels and demand is stronger than ever, its profits haven’t returned as quickly. Net income has been up and down, although it made a healthy showing in the fiscal third quarter at $1.7 billion. Wall Street is expecting that to be negative again in the fourth quarter but positive for the full year.

The other and more glaring issue for Carnival is its debt. The debt reached as high as nearly $35 billion at its peak, and although it’s paid off a nice chunk, it’s going to take many years to get the debt to pre-pandemic levels. Carnival didn’t go into this period without debt — it had around $9 billion before. That isn’t unusual for well-established companies, especially those that pay a dividend, like Carnival did in its pre-pandemic life. So while it may not be looking to get down to zero, it still has a ways to go before hitting targets that bring down its risk level.

Management is expecting its increasing free cash flow to go toward paying off the debt. It needs to deftly manage keeping cash coming in and using it to invest in its business, and also have enough remaining to pay off the debt at a steady pace.

Several factors are working in its favor right now. One is the incredibly high demand that isn’t stopping. Carnival cruises are booked out through most of next year at high ticket prices with record deposits, bringing in much-needed funds. It’s already beginning 2026 bookings at record levels.

Another is lower interest rates, which can help it refinance its debt at better rates. That should make it easier to pay off earlier. It could also lead to higher demand as more people feel the flexibility to spend again.

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Carnival stock doubled last year on its sales rebound. If it makes enough headway on its profit and debt goals over the next two years, it could easily double again.

Millions of people are shopping with Pinterest

John Ballard (Pinterest): One stock investors have forgotten about is Pinterest. This is a fallen darling of the post-pandemic surge in growth for digital media platforms, when Pinterest experienced robust growth from people staying at home and browsing apps on their phones. The company’s revenue growth has accelerated this year, which could set up a comeback for the shares.

Like other social media platforms, Pinterest uses digital advertising to generate revenue. The recovery in the digital ad market and recent artificial intelligence (AI) features are driving higher conversion for advertisers, which has pushed quarterly revenue growth back above 20% year over year for two straight quarters.

The biggest differentiator for the Pinterest app is that people use it when they are shopping. This is appealing to advertisers, and Pinterest continues to lean into this with features that encourage users to click and make a purchase. The number of outbound clicks sent to advertisers more than doubled in the second quarter, for the third consecutive quarter.

Pinterest is also seeing accelerating growth in monthly active users. They’ve increased by 12% year over year in Q2 to reach 522 million. This growth is mostly coming from outside the U.S. and Canada, indicating that Pinterest has a lot of global potential.

The stock trades at a very reasonable forward price-to-earnings (P/E) ratio of 23 on this year’s earnings estimate and 19 times next year’s expected earnings. Higher margins are expected to grow earnings at high rates over the next few years, which should send the shares higher.

Competing platforms like Instagram owner Meta Platforms and Snap trade at forward P/E multiples of 27 and 48, respectively. If Pinterest stock trades at a P/E of 30 on 2026 earnings estimates, it would trade at $64, or 90% higher than the current share price. That’s close to a potential double, and Pinterest could certainly get there by meeting Wall Street’s expectations.

An easy way to bet on a housing recovery

Jeremy Bowman (Opendoor Technologies): Opendoor’s history on the stock market has mostly been a disaster thus far.

Shares of the professional home-flipper are now down 95% from its post-IPO peak in 2021, but the main reason for its struggles is the collapse of the housing market after the pandemic. Falling prices and weak demand led to major losses for a company whose business depends on buying houses and selling them for a profit.

The macro gods may be finally smiling on Opendoor, as the housing market appears to be on the verge of a recovery. The Federal Reserve just slashed benchmark interest rates and is expected to continue lowering them over the next couple of years. That means mortgage rates should also come down, encouraging more buyers to come back into the market. That demand should also encourage more sellers, which will provide more opportunity for Opendoor.

Currently, annual existing home sales are at a pace of roughly 4 million, down about 40% from where they were before the pandemic. As the home sale rate normalizes, Opendoor’s business should grow. While rising home prices help the company, it also makes money from fees when it buys and sells properties.

Additionally, the company has streamlined its business after several layoffs, which should help drive profitability. Currently, the stock trades for less than $2 a share and has a market cap of $1.3 billion, which means it could double in the next two years if macroeconomic conditions cooperate.

While the stock remains risky and should continue to be volatile, there’s a lot of upside potential in Opendoor stock in a healthy housing market.

Should you invest $1,000 in Carnival Corp. right now?

Before you buy stock in Carnival Corp., consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carnival Corp. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $826,130!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of October 7, 2024

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Meta Platforms and Pinterest. John Ballard has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms, Opendoor Technologies, and Pinterest. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.

3 Stocks That Could Double Over the Next 2 Years was originally published by The Motley Fool

(Reuters) -A U.S. appeals court on Friday put on hold approvals and permits necessary to allow a Kinder Morgan subsidiary to construct a 32-mile gas pipeline in Tennessee, at the urging of environmental groups.

The proposed Cumberland Project, set to be constructed by Kinder Morgan’s Tennessee Gas Pipeline, could transport about 245,000 dekatherms per day of additional natural gas to power supplier Tennessee Valley Authority.

On a 2-1 vote, Cincinnati-based 6th U.S. Circuit Court of Appeals put a hold on the Tennessee Department of Environment and Conservation’s order issuing a water quality certification and the Army Corps of Engineers’ issuance of a permit.

The request for a stay was filed by environmental organizations Appalachian Voices and Sierra Club, which claimed the pipeline’s construction could have detrimental impact on the environment.

The court said a stay was appropriate for it to have the time to consider the merits of the environmental groups’ case.

It said further arguments in the case would be heard in December.

A Kinder Morgan spokesperson said the company does not agree with the court’s decision, which it will continue to review while evaluating its options.

Bri Knisely, Director of Public Power Campaigns at Appalachian Voices, welcomed the court’s decision

“The Cumberland Pipeline poses a major, unnecessary risk to important aquatic habitat in Tennessee, as well as the health and safety of our communities,” she said.

Sierra Club did not immediately respond to Reuters’ requests for comment.

(Reporting by Vallari Srivastava in Bengaluru and Nate Raymond in Boston; Additional reporting by Chandni Shah; Editing by Shreya Biswas)