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What’s impressive about this durability is that the company has more exposure to commodity prices than Enbridge does. It operates natural gas and NGL processing plants, which make money based on the value of the products produced. In addition, some of its other assets have some volume risk.

Oneok has overcome these obstacles by investing heavily in expanding its capacity in areas where production is growing fast. The company has also made several highly accretive acquisitions, including Magellan Midstream Partners in a transformational $18.8 billion deal last year to diversify and enhance its midstream footprint. And it acquired Medallion Midstream and a meaningful interest in EnLink Midstream for $5.9 billion this year.

Those deals have Oneok on track to grow its adjusted EBITDA from $5.2 billion last year to over $8 billion in 2025. It also has several more expansion projects due to enter service through 2027.

These growth investments should allow the company to increase its dividend by 3% to 4% annually over the next several years while also repurchasing shares and strengthening its already sound balance sheet.

Enbridge and Oneok have been models of durability over the decades. Despite several periods of severe market dislocation, they have consistently grown their earnings and dividends. That’s a testament to their resilient, low-risk business models and steady expansion.

Both companies have visible growth coming down the pipeline, which should mean continued increases in their payouts. That makes them great dividend stocks to buy for the long term for those seeking durable income.

Before you buy stock in Enbridge, 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 Enbridge 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 $858,854!*

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 November 18, 2024

Matt DiLallo has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.

2 Durable Dividend Stocks That Have Delivered Decades of Stability and Growth was originally published by The Motley Fool

Investors should bear in mind that the current rate-cutting cycle started in September, and will likely persist for several months. So, the first point above will only become relevant once the current cutting cycle reaches its conclusion. That said, the relative valuation of the Russell 2000 versus the S&P 500 is 26 percentage points below its average over the last four decades.

The Vanguard Russell 2000 ETF tracks the performance of roughly 2,000 small-cap companies. The index fund includes value stocks and growth stocks from all 11 market sectors, though it’s most heavily weighted toward the industrial, financial, and healthcare sectors. The five largest position in the Vanguard Russell 2000 ETF are listed by weight below:

1. FTAI Aviation: 0.5%

2. Sprouts Farmers Market: 0.5%

3. Vaxcyte: 0.5%

4. Insmed: 0.4%

5. Mueller Industries: 0.3%

Importantly, the Russell 2000 offers much less exposure to technology stocks than the S&P 500. Specifically, the former has just 11% of its market value in technology stocks, while the latter has 32% of its market value in technology stocks. That discrepancy is noteworthy because the technology sector was the best-performing market sector over the last five, 10, and 20 years.

Consequently, the Vanguard Russell 2000 ETF underperformed the S&P 500 during those periods. In fact, while the Vanguard Russell 2000 ETF advanced about 125% over the last decade, the S&P 500 surged about 245%, essentially doubling the return of the small-cap benchmark.

The last important point is the expense ratio. The Vanguard Russell 2000 ETF carries a modest expense ratio of 0.1%, meaning investors will pay $1 annually on every $1,000 invested. Comparatively, the Vanguard S&P 500 ETF has a lower expense ratio of 0.03%.

Here’s the bottom line: Fundstrat analyst Tom Lee thinks interest rate cuts and historically cheap valuations will help the small-cap Russell 2000 outperform the large-cap S&P 500 by more than 100% in the next few years. Investors can position themselves to benefit from that outperformance by purchasing shares of the Vanguard Russell 2000 ETF.

However, the S&P 500 has crushed the Russell 2000 in recent history because it has more exposure to the technology sector. That trend could continue in the future as the artificial intelligence boom unfolds. So, I think the most sensible move is to own an S&P 500 index fund and a Russell 2000 index fund, but I would prioritize the former over the latter.

Before you buy stock in Vanguard Russell 2000 ETF, 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 Vanguard Russell 2000 ETF 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 $858,854!*

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 November 18, 2024

JPMorgan Chase is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Goldman Sachs Group, JPMorgan Chase, and Vanguard S&P 500 ETF. The Motley Fool recommends Sprouts Farmers Market. The Motley Fool has a disclosure policy.

1 Vanguard Index Fund May Beat the S&P 500 by 100% in the Next Few Years, According to a Wall Street Analyst was originally published by The Motley Fool

Dalio and his team might also be discouraged by U.S. regulators capping Nvidia’s potential. In 2022 and 2023, regulators restricted exports of high-powered AI chips to China, the world’s No. 2 economy by gross domestic product. China is a key contributor to Nvidia’s sales and profits.

Lastly, Bridgewater Associates’ brightest minds may be anticipating a significant uptick in competition in the AI-GPU arena. In addition to growing external competition, many of Nvidia’s largest customers by net sales (mostly members of the “Magnificent Seven”) are internally developing AI chips of their own. Even though these internally developed AI chips are likely to lag Nvidia in computing potential, they’ll be significantly cheaper and more easily accessible. In other words, it could cause Nvidia to lose valuable data center space in the quarters to come.

But while Dalio and his top investment advisors were paring down Bridgewater’s position in Nvidia, they were actively piling into two other prominent AI stock-split stocks.

Based on the latest 13F, 710,793 shares of AI-networking solutions specialist Broadcom (NASDAQ: AVGO) were purchased, which increased Bridgewater’s stake by 291% over three months. Broadcom completed its first-ever stock split (also 10-for-1) following the close of trading on July 12.

Just as Nvidia’s GPUs have garnered a monopoly like share in enterprise data centers, Broadcom’s AI networking solutions have been the preferred choice for businesses. The Jericho3-AI fabric can connect up to 32,000 GPUs, with the goal being to reduce tail latency and maximize computing potential. Reducing tail latency is especially important in data centers where split-second decisions are being made by AI-driven software and systems.

But the most important thing about Broadcom might just be that it’s much more than an AI company. Although AI accounts for the lion’s share of its current sales growth, a majority of its revenue can be traced to its foundational operating segments. This means if an AI bubble were to form and burst, Broadcom would be in better position than Nvidia to ride out the storm.

Broadcom is an important provider of wireless chips and accessories used in next-generation smartphones. Wireless companies upgrading their networks to support 5G download speeds have increased demand for Broadcom’s products.

Additionally, it offers cybersecurity solutions, provides optical components for industrial equipment, and has a portfolio of products used in next-generation vehicles. These are all segments that should steadily grow over time as vehicles become more tech-dependent and demand for automated industrial equipment increases.

The other AI stock-split stock that Dalio and his crew scooped up is customizable rack server and storage solutions specialist Super Micro Computer (NASDAQ: SMCI). The 1,453,270 shares added during the September-ended quarter increased Bridgewater’s position in Super Micro by 921%!

Super Micro, which completed a 10-for-1 forward split (also its first ever) following the close of trading on Sept. 30, has enjoyed strong demand for its customizable rack servers. Businesses eager to gain competitive advantages have been willingly spending on the infrastructure needed to build out their data centers, and Super Micro Computer has played a big role in making this happen.

What’s more, Super Micro incorporates Nvidia’s leading GPUs into its rack servers. Using preferred hardware has been the lure that helped to more than double the company’s sales in fiscal 2024 (ended June 30).

However, Super Micro Computer may not be the amazing value and growth story that it appears to be on the surface. In late August, noted short-seller Hindenburg Research issued a report that alleged “accounting manipulation” at Super Micro. Since this report, an early stage probe of the company’s accounting practices was opened by the Department of Justice, according to The Wall Street Journal.

To make matters worse, accounting firm Ernst & Young, which had previously pointed to internal control concerns at Super Micro, resigned as the company’s auditor in late October. While this doesn’t mean the allegations levied by Hindenburg are accurate, the optics of this situation are undeniably negative.

Even though Super Micro Computer appears well-positioned for success on paper, its stock is effectively off-limits until it files its currently delayed annual report and puts these accounting questions to bed.

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:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,386!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,183!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $456,807!*

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 November 18, 2024

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Billionaire Ray Dalio Sold 27% of Bridgewater’s Stake in Nvidia and Is Piling Into 2 Artificial Intelligence (AI) Stock-Split Stocks was originally published by The Motley Fool

Dong Longfei, co-founder of graphics processing unit (GPU) start-up Moore Threads Technology, said in response to a question at a panel on Tuesday that Chinese firms will eventually find a way to advance semiconductor production.

“I believe if the government, industry and academics combine their efforts, we will solve the manufacturing problems,” he said. “Unlike smartphone chips, GPUs don’t require the most advanced processing node – there are many ways such as chiplets that can help us make [GPUs].”

Chiplets are modular integrated circuits that can be packed together in chips to make a more powerful device. It has been widely viewed as one way for China to overcome certain manufacturing setbacks from US export restrictions.

Moore Threads’ MTT S400 GPU. Photo: Moore Threads alt=Moore Threads’ MTT S400 GPU. Photo: Moore Threads>

Moore Threads was added to a US trade blacklist in October 2023, dealing a blow to its ambitions to take on Nvidia in China. The company – started in 2020 by Zhang Jianzhong, the former head of Nvidia’s China operations – lost access to global foundry services using US technology, including TSMC’s, as have many of its domestic competitors such as Biren Technology and Huawei.

TSMC has notified some Chinese AI chip designers that it will suspend foundry services for 7-nanometre feature sizes or smaller, as the chipmaker tightens its vetting of customers after some of its integrated circuits were found in a Huawei device.

Few Chinese companies have disclosed where their chips are processed, but no mainland fabs are capable of matching TSMC in advanced nodes.

TSMC’s sales coming from Shenzhen have ballooned this year on the back of strong demand from manufacturers of smart hardware, even as the world’s largest contract chipmaker faces US pressure to reduce business in China, Zhao Xiaoguang, research head at Tianfeng Securities, said during the panel.

Despite US efforts to decouple from China, the world’s second-largest economy still has to keep its market open to global semiconductor companies, according to industry experts.

Liu Yuanchao, deputy general secretary of the China Semiconductor Industry Association, recently told 11 representatives of South Korean chip firms during the China-Korea Semiconductor Expert Conference that the two countries have great potential to work together because they have complementary industries.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.

Copilot can accelerate workflows in 365 by rapidly generating text and image content and also answer complex questions on a range of topics. Organizations around the world pay for 365 software licenses (more than 400 million at the moment), all of which are candidates for the Copilot add-on, so this could be a huge financial opportunity for Microsoft.

Then there’s Microsoft Azure, which is one of the largest providers of cloud services in the world. It’s a go-to destination for developers seeking state-of-the-art computing infrastructure and ready-made large language models (LLMs), like OpenAI’s latest o1 series, which are the key ingredients for creating powerful AI software applications.

Azure revenue jumped by 33% year over year in the recent fiscal 2025 first quarter ended Sept. 30, and 12 percentage points of that growth specifically came from AI services. That was up from 8 points in the prior quarter just three months earlier, and the figure has accelerated in every single quarter since Microsoft started reporting it more than a year ago. This business could be a key source of stock-price appreciation in the years ahead.

If Microsoft executes a 3-for-1 split, its stock will come down to $138 per share, which would make it more accessible for smaller investors. It would also place it in line with other trillion-dollar tech giants like Nvidia, Amazon, Alphabet, and Apple, which have stock prices of between $100 and $250.

Meta Platforms has never done a stock split, but I think there could be one in the near future. The company came public in 2012 at a price of $38 per share but has soared to $554 since then, which is the highest price tag of any tech stock in the trillion-dollar club.

Meta is the parent company of social networks Facebook, Instagram, and WhatsApp, which serve almost 3.3 billion people around the world every single day. The company generates most of its revenue from selling advertising slots to businesses, so the longer each user spends on the company’s platforms, the more ads they’ll see and the more money Meta will make.

The company is increasing engagement by using AI algorithms to learn what each user likes to see so it can curate their content feeds to maintain their attention. Meta CEO Mark Zuckerberg says this strategy led to an 8% increase in the amount of time each user spent on Facebook so far this year and a 6% increase for Instagram.

Releasing new features also helps to boost engagement. Meta launched an AI-powered virtual assistant called Meta AI last year, which users can access through each of the company’s social apps. It can generate text and images and even join your group chat to settle debates with friends or offer suggestions for fun activities. Meta AI had amassed 500 million monthly active users as of the third quarter of 2024 (ended Sept. 30), so it’s on its way to becoming one of the company’s most popular products.

Meta AI is powered by Llama, an LLM that Meta built in-house. The company is on track to invest up to $40 billion in data center infrastructure this year, which will provide enough computing power to launch Llama 4 in 2025. It will be Meta’s most powerful LLM so far, and Zuckerberg says it has the potential to lead the entire industry.

Meta stock trades at a forward price-to-earnings ratio (P/E) of 21.9, based on Wall Street’s consensus forecast for the company’s 2025 earnings per share. That means the stock would have to soar by 71% next year just to trade in line with its 10-year average P/E ratio of 37.5, which implies a stock price of $947.

I think Meta should consider a split right now, but a 10-for-1 split might be a no-brainer decision if the stock approaches four figures next year.

Before you buy stock in Microsoft, 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 Microsoft 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 $858,854!*

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 November 18, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Chipotle Mexican Grill, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short December 2024 $54 puts on Chipotle Mexican Grill, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

2 Potential Artificial Intelligence (AI) Stock-Splits Investors Could See in 2025 was originally published by The Motley Fool