This Billionaire Income Investor Prefers These Ultra-High-Yield Dividend Stocks Right Now
Bill Gross made a lot of money for his investors (and himself) at PIMCO, the investment management firm he co-founded. Forbes estimates his net worth at $1.7 billion. He made most of his money investing in bonds (he’s known as the “Bond King”).
Today, Gross favors a different type of income-generating investment: master limited partnerships (MLPs). Here’s a look at why he prefers them over other pipeline stocks for those seeking tax-advantaged income.
Bill Gross recently wrote about the benefits of investing in MLPs, like Enterprise Products Partners (NYSE: EPD) and Energy Transfer (NYSE: ET), over pipeline corporations, like Kinder Morgan (NYSE: KMI) and Williams (NYSE: WMB). For starters, the MLPs currently have much higher yields compared to their corporate peers:
All four energy midstream companies generate stable revenues backed by long-term contracts and government-regulated rate structures. Further, they all pay out around 50% of their predictable cash flow to investors in dividends (or distributions for the MLPs). The key difference between the two groups is their valuations.
Shares of Kinder Morgan and Williams have surged about 40% and 50%, respectively, this year, while units of the MLPs are up about 20%. Because of that, the pipeline companies now trade at about 20 times their earnings, while the MLPs sell for around 12 times their earnings.
In addition to earning a higher going-in income stream, MLPs offer a unique tax advantage. MLPs benefit from a tax-deferral feature on their distributions that can enable investors to defer taxes on a meaningful percentage of their distributions until they sell their units.
Gross did the math, writing: “The compounding deferral could add as much as 1% or so over a 5-10-year average holding period, turning the 8% average to a 9-10% dividend return on your portfolio.” That extra percentage point can add up over the long term.
Gross dove into the two main factors driving the disconnect between MLPs and pipeline stocks. He noted that many investors don’t like receiving the Schedule K-1 Federal Tax Forms MLPs send their investors each year (pipeline corporations send a 1099-DIV Form). Those K-1s can complicate and add to the expense of preparing individual taxes, so many investors avoid these entities.
Meanwhile, some pipeline companies have a competitive advantage in that they primarily transport natural gas (Kinder Morgan and Williams are leaders in gas infrastructure). That potentially positions them for more growth in the coming years as gas demand surges, fueled partly by the need to power data centers for artificial intelligence. That optimism over gas demand has driven up the valuations of Williams and Kinder Morgan this year.
Meet the Stock-Split Stock Warren Buffett Can't Stop Buying. And It Still Offers 58% Upside, According to 1 Wall Street Analyst.
Those looking to become successful investors could do worse than following in the footsteps of legendary Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett, arguably one of the greatest investors of all time. Since taking the helm of the company in 1965, Buffett has an unparalleled track record, as his stock picks have generated compounded annual gains of roughly 20% and collectively soared 4,384,748%.
Stock splits have enjoyed a resurgence in recent years, and it’s easy to see why. The practice is generally reserved for companies with consistently strong sales and profit growth, which fuels a surging stock price. In other cases, they can be used to further a corporate action.
Investors might be surprised to learn that despite selling large swaths of Berkshire’s equity portfolio in recent quarters, the so-called “Oracle of Omaha” has been buying up shares of one stock-split stock that he seemingly can’t get enough of — Sirius XM Holdings (NASDAQ: SIRI).
In a regulatory filing that dropped earlier this month, it came to light that Berkshire Hathaway increased its holdings in the satellite radio operator by more than 3.5 million shares, spending more than $86.7 million in the process. That brings Buffett’s total stake to 108.7 million shares, currently worth more than $2.9 billion (as of this writing). With about 339 million shares outstanding, that amounts to about 32% of the company’s outstanding shares.
Sirius XM has struggled in recent years, so why is Buffett buying the stock like it’s going out of style?
First, there’s the company’s industry dominance. When it comes to satellite radio, Sirius is without equal. It has 33 million paying subscribers on its rolls, but its audience climbs to 150 million listeners when you include Pandora, the company’s ad-supported streaming music service.
In the second quarter, revenue declined 3% year over year to $2.18 billion, while earnings per share (EPS) of $0.08 was flat. While that might not seem like much to write home about, a look at several other metrics provides insight into why Buffett finds this business so appealing.
During the quarter, Sirius XM generated free cash flow of $343 million. The company’s roughly 33 million subscribers generate a healthy amount of recurring revenue, as does the advertising on Pandora. The subsidiary reported 2.6 billion listener hours, which helps guarantee robust advertising rates. Buffett is a big fan of recurring cash flow, and Sirius has that in spades.
EW FRAUD ALERT: BFA Law Notifies Edwards Lifesciences Investors of Upcoming December 13 Court Deadline and Encourages You to Contact the Firm (NYSE:EW)
NEW YORK, Oct. 27, 2024 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Edwards Lifesciences Corporation EW and certain of the Company’s senior executives for potential violations of the federal securities laws.
If you invested in Edwards Lifesciences, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/edwards-lifesciences-corporation.
Investors have until December 13, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Edwards Lifesciences securities. The case is pending in the U.S. District Court for the Central District of California and is captioned Patel v. Edwards Lifesciences Corporation, et al., No. 24-cv-02221.
What is the Lawsuit About?
The Complaint alleges that Edwards is an international company that researches, develops, and provides products and technologies for heart valve repair and replacement therapies, as well as critical care monitoring solutions. Edwards categorizes its therapies and technologies into four categories: Transcatheter Aortic Valve Replacement (“TAVR”), Transcatheter Mitral and Tricuspid Therapies (“TMTT”), Surgical Structural Heart therapies, and Critical Care therapies.
As alleged, Edwards consistently touted the TAVR platform, the significant unmet demand for TAVR, and the Company’s ability to capitalize on that demand by scaling its various patient activation activities.
These statements were allegedly materially false and misleading. In truth, TAVR’s demand and growth had stalled as Defendants’ patient activation activities failed to reach the perceived low-treatment-rate population and healthcare organizations prioritized other treatments over TAVR.
On July 24, 2024, Edwards slashed guidance for TAVR for fiscal 2024 and announced disappointing financial results for TAVR for fiscal 2Q 24. This is allegedly because developments in new procedures, including Defendant’s own TMTT, put significant strain on hospital structural heart teams such that they were underutilizing TAVR, despite the Company’s continued claims of a significantly undertreated patient population.
The news disclosed on July 24, 2024 caused a significant 31% decline in the price of Edwards stock, from $86.95 per share on July 24, 2024 to $59.70 per share on July 25, 2024.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/edwards-lifesciences-corporation.
What Can You Do?
If you invested in Edwards Lifesciences you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/edwards-lifesciences-corporation
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/edwards-lifesciences-corporation
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3 Magnificent S&P 500 Dividend Stocks Down 43%, 20%, and 53% to Buy and Hold Forever
Like bargains? Need dividends? No problem. Several of the S&P 500‘s stocks fit both bills at this time, with a bunch of them boasting the makings of a true “forever” holding. Here’s a rundown of three of these best bets right now.
There’s no denying that Pfizer (NYSE: PFE) isn’t quite the pharmaceutical powerhouse it used to be. The loss of patent protection on its blood thinner Lipitor in 2011 was a blow it never quite got over, but it would also be naïve to believe the company’s research and development (R&D) and acquisitions are as strong now as they were in the past. The drugmaking business has also seemingly become even more competitive in the meantime.
That’s why, after a burst of bullish brilliance during and because of the COVID-19 pandemic (Pfizer’s Paxlovid was an approved treatment), this stock’s peeled back 53% from its late 2021 peak.
The long-awaited winds of change are finally blowing, even if in a way that feels more disruptive than helpful. Activist investor Starboard Value is shaking the chains, so to speak, calling Pfizer out for its failures on the drug-development front and the acquisition front. Starboard specifically points out that 2023’s $43 billion acquisition of oncology company Seagen has yet to show meaningful benefit given its high cost, and adds that Pfizer’s failed to turn the 15 drugs it was touting as potential blockbusters in 2019 into those major moneymakers.
In CEO Albert Bourla’s defense, the coronavirus contagion slowed R&D for most pharmaceutical companies, if only by complicating the logistics of drug trials. Nevertheless, Starboard makes several fair points.
But what does this mean for current and prospective shareholders? While it’s typically better when any organization recognizes its own weaknesses and implements much-needed changes, Starboard Value’s involvement should still drive this overdue overhaul.
Nothing about this drama changes anything about Pfizer’s dividend, by the way. It’s not only paid one every quarter like clockwork for years now, it’s also raised its net annual payment for 15 years in a row. This streak isn’t in any real jeopardy, either.
Newcomers will be plugging into the stock while its forward-looking dividend yield stands at 5.8%.
There’s a decent chance you’ve never heard of Realty Income (NYSE: O). Don’t let its lack of notoriety fool you. This $55 billion S&P 500 constituent is here to stay, and thrive.
Realty Income is a landlord. It’s structured as a real estate investment trust, or REIT. REITs are investments that trade like stocks, but pass along the bulk of any rental profits generated by that REIT’s underlying real estate portfolio. It’s an easy way for investors to be in the rental real estate business without the usual hassle of buying, selling, finding tenants, and performing maintenance on a property.
I've Reached a $1 Million Net Worth – Should I Get Umbrella Coverage?
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With a question about umbrella coverage, your net worth doesn’t much apply. The question is more about what you need in order to protect yourself, your assets and your family. That has more to do with your exposure and risk of loss than with how much you have to lose. As to whether someone would need umbrella insurance in this scenario, the answer is truly a “maybe.” It depends on your current insurance coverage, the costs of extra coverage and the specific risks you’re concerned about.
Do you have questions about financial planning? Speak with a financial advisor today.
Umbrella insurance is a secondary policy that kicks in after your primary insurance policy is exhausted. It covers any losses or payouts beyond the coverage of your primary insurance.
For example, say that you have an auto insurance policy that covers up to $150,000 in liability and damages. You are considered at-fault in an auto accident with a driver who suffers $95,000 worth of damage to their car and $155,000 worth of personal injuries and lost wages.
Your insurance policy could pay for the first $150,000 of this claim. Then, an umbrella insurance policy could pay that remaining $100,000 for which you would otherwise be personally liable.
The main reason to buy umbrella insurance is third-party liability. By and large, you can know in advance the value of your own property and assets, whether personal or real estate. Since this is knowable, you can buy insurance to cover most cases of personal loss.
Liability is another matter. It’s impossible to predict with any certainty the value of a third party’s assets or injuries. You might be in a car accident someday, or accidentally injure a guest at a party. Since accidents are impossible to predict, so are the costs and harms associated with them. This is where umbrella insurance comes in, as it covers you in case of unpredictable liability that exceeds your policy’s coverage.
Most consumers who get umbrella insurance will use it to supplement either auto or homeowner’s policies. Typically you must have an existing primary insurance policy, as this will not act as your main insurance. For homeowners, this can supplement coverage that you get based on your personal needs and mortgage requirements. For drivers, this can supplement coverage that you have based on your personal needs and your state minimum coverage laws. A financial advisor can help you review and coordinate your current coverage.
ROSEN, TOP-RANKED INVESTOR COUNSEL, Encourages Metagenomi, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – MGX
NEW YORK, Oct. 27, 2024 (GLOBE NEWSWIRE) —
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of stock of Metagenomi, Inc. MGX pursuant and/or traceable to the Company’s initial public offering conducted between February 9 and 13, 2024 (the “IPO”), of the important November 25, 2024 lead plaintiff deadline.
SO WHAT: If you purchased Metagenomi stock you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Metagenomi class action, go to https://rosenlegal.com/submit-form/?case_id=29254 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than November 25, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, Metagenomi introduced itself to investors during its IPO as a “genetic medicines company” having a long-standing business relationship with Moderna, one of the leading Covid-19 vaccine companies. Integral to Metagenomi’s collaboration with Moderna was the claim that the two companies had entered into a Strategic Collaboration and License Agreement on October 29, 2021, which included multiple four-year research programs and a subsequent licensed product-by-licensed product agreement. Metagenomi completed its initial public offering on February 13, 2024, selling 6.25 million shares at $15 per share. However, less than three months later, on May 1, 2024, Metagenomi announced that it and Moderna had “mutually agreed to terminate their collaboration” agreement. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Metagenomi class action, go to https://rosenlegal.com/submit-form/?case_id=29254 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
case@rosenlegal.com
www.rosenlegal.com
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The Best High-Yield Oil Stock to Invest $1,000 in Right Now
If you are looking at oil and natural gas stocks, there is one thing you should go in expecting — and that’s volatility. Oil prices are known to swing dramatically and, often, quickly. Any investor putting money to work, whether it be $100, $1,000, or $100,000, has to be prepared for periods of weakness because they will, eventually, arrive. Which is why buying an industry leader like Chevron (NYSE: CVX) is probably the best choice for most investors. Here’s what you need to know.
There are companies that drill for oil and natural gas, which make up the upstream segment of the oil industry. There are companies that transport oil and natural gas, and the products into which they get turned, via energy infrastructure assets like pipelines that comprise the midstream segment of the energy sector. And there are companies that refine and process oil and natural gas and turn them into things like gasoline and chemicals in the downstream segment of the industry.
Then there are companies that do all of that, with assets spread across the entire energy landscape. These are the integrated energy companies, a group that includes Chevron. The reason to do this is that each of the different segments of the energy industry performs differently at different times. The best example is that low oil prices will hurt the upstream business but often benefit the downstream business, which uses oil as an input. For most investors, owning an integrated energy company will be the best option in the energy sector.
Chevron competes with companies like ExxonMobil, BP, Shell, and TotalEnergies. However, if you are looking for an integrated oil company, Chevron stands out in some important ways.
Shell and BP both cut their dividends during the peak of the coronavirus pandemic. Although they have high yields, those dividend cuts will likely bother income investors looking for reliable dividend stocks. TotalEnergies didn’t cut its dividend, but it has been increasingly investing in electricity and renewable power assets. While it is changing with the world around it, as cleaner energy options grow in importance, it really isn’t a pure-play energy company anymore. That leaves Exxon and Chevron, both of which have stuck closer to their oil roots. And both of which have a long history of increasing their dividend year in and year out.
To be fair, Exxon’s 42-year streak of annual dividend increases is better than Chevron’s 37-year streak. But both streaks are impressive when you consider the huge swings in the price of oil and natural gas that have occurred over the past three decades. So, really, Chevron stands toe to toe with Exxon on this front. But it beats Exxon in two other important areas.
Inside Trump's Inner Circle: How JD Vance-Backed Tech Magnate Pavlovski Is Shaping Up Right-Wing Politics
In the aftermath of Donald Trump’s ban from major social media platforms, tech entrepreneur Chris Pavlovski emerged as a significant ally. The CEO of Rumble Inc. RUM, a video-streaming platform, Pavlovski integrated himself into Trump’s inner circle, providing essential technical support to Trump Media & Technology Group Corp DJT, which operates Truth Social, per a report by The Washington Post.
Pavlovski’s Rise In Conservative Politics
Pavlovski’s connections with Trump deepened during a 2021 meeting at Mar-a-Lago, where he mingled with Trump’s staff. His expertise was pivotal in establishing Rumble’s cloud infrastructure for Truth Social, marking Rumble as a key player in Trump’s media strategy. This partnership became crucial as Trump’s digital presence relied heavily on alternative platforms due to perceived censorship by mainstream tech companies, the Post added.
Also Read: Elon Musk Pumps More Than $130M Into Trump And GOP Campaigns
Rumble, initially launched as a competitor to YouTube, gained traction among conservative users frustrated with content moderation during the pandemic. Backed by a group of conservative investors, including JD Vance, Rumble received a vital $25 million investment in 2021, the report read. This financial boost coincided with Rumble’s significant growth, culminating in its public offering in 2022, which valued the company over $2 billion.
However, Pavlovski’s international hiring practices, particularly in North Macedonia, have raised eyebrows given Trump’s “America First” rhetoric. Despite employing local workers, some critics argue this approach contradicts promises to bring jobs back to the U.S. Pavlovski’s recent discussions with North Macedonia’s government suggest potential expansion of Rumble’s services abroad, further entrenching the company’s role in conservative politics.
Rumble as a Haven for Right-Wing Content
As Rumble continues to host controversial content, including state-sponsored propaganda, it has become a haven for users seeking less moderation. Pavlovski has positioned himself at the forefront of right-wing media, with Trump’s family increasingly integrating into Rumble’s ecosystem, The Washington Post reported.
Pavlovski recently visited North Macedonia with Devin Nunes, CEO of Trump Media, to meet with the country’s right-wing government. They discussed the possibility of Rumble providing cloud services to the Macedonian government similar to those it offers for Trump’s Truth Social. Recently, Pavlovski was seen with Ivanka Trump and Jared Kushner at a UFC fight and dined with Donald Trump Jr. and Kimberly Guilfoyle.
Pavlovski’s rise within conservative circles underscores the growing intersection of technology and politics, particularly with the election just a couple of weeks away.
His partnership with Trump and platforms like Rumble could significantly shape the political landscape as they navigate the upcoming election.
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