Stick With Companies Beating Earnings Now
The market’s wild swings in the past few weeks reflect some economic uncertainty. Rising interest rates are starting to take their toll on the economy. More importantly for investors, rising bond yields tend to compete with dividend-paying stocks in the short-term. That can create some opportunities for investors. Especially if they focus on industry leaders that have proven that they can still grow amid the current uncertainty, and can continue to grow their dividends. PepsiCo (PEP) beat expectations in its most recent ...
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Keep Riding this Commodity Boom with the Sector’s Top Names
Commodities were out of favor with the market for the 2010s, but have started to see a comeback since 2020. Typically, commodity markets move in a long-term trend, where decade-long moves can play out. That gives today’s investors in the space ample time to benefit from the trend. Like most trends, it will start slow and build up, ending in a speculative burst. That makes now the optimal time to start buying in. One strong part of the commodity space is the ...
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Invest With the Middleman for the Best Profits in the Service Industry
In many transactions between a buyer and a seller, there’s a middleman. For a customer, that may mean shopping at a store, with the store making a small profit for stocking goods from dozens of various providers. While that business model has low profit margins, the margins can improve when it involves a service. A middleman can find an optimal deal, and still make a great return overall. One such middleman is Booking Holdings (BKNG), the parent company of travel services company ...
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In Rough Markets, Put Safe Dividend Payers First
The market has dropped over 5 percent in just the past few weeks. Bond yields have soared, which have made bonds more attractive compared to dividend-paying stocks in general. But while bond yields fluctuate over time, the price paid out doesn’t change. For dividend stocks, being able to grow the payout over time tends to lead to great returns. That’s because higher payouts tend to lead to higher share prices. RPM International (RPM) isn’t a household name. It’s a specialty chemical manufacturer ...
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This Cash Flow Giant Is Set to Expand Its Lead
The past 20 years have seen a major shift in how consumers view advertising. With fewer eyeballs looking at physical newspapers and going online, investors have been able to profit from the shift to online advertising. Today, there’s the prospect of even bigger profits for many of these industry leaders. That’s due to the ability to better tailor tools for online advertisers using artificial intelligence software. Social media giant Meta Platforms (META) is adding in new AI tools that will give advertisers ...
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Invest In Companies Increasing Their Efficiency
The economy can grow in several ways. One of the key ways of growth is productivity growth. The rise of the internet in the 1990s led to a boom in productivity, as many office tasks moved onto computers and away from less efficient means. A new boom is underway today with the rise of AI technology and automation. These new tools can make a process more efficient, and reward companies with higher profit margins and better operational results. One form of automation ...
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Removing Legal Uncertainties Is Good for Business – and Shares
Investors don’t like it when a company has a legal problem hanging over it. That’s because the court system can take time, and considerable amounts of money, to fend off a legal battle. Resolving a legal issue can lead to a rally in the short-term, even if there are big costs involved. That’s because taking the uncertainty off the table is good for shares looking forward over the long term. Discover Financial Services (DFS) just reported that they had to address shortcomings ...
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Time to Buy Great Companies at a Decent Price
When the market is selling off, investors will often go to cash first and then wait for the all-clear. That can result in missing out on the start of the next rally. An alternative strategy is to buy great companies once they reach a good price. It doesn’t have to be the best price, as an industry leader can recover from a market selloff and move higher over time. With the markets fearful of a government shutdown, defense stocks have been trending ...
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