Trump’s Stock Picks Are Crushing the Market: Are These 4 Stocks a Buy?

2025-12-01 09:58:38 By Jennifer Johnson

Key Points

  • President Trump’s stocks have averaged 100% gains since the government took a stake in them, but such involvement may distort corporate priorities.
  • The potential for a new trade war with China might change the calculus on some of these stocks.
  • These stocks are surging on their government deals, but euphoria alone won’t sustain gains.
  • Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)

President Trump has taken an unprecedented step by directing the federal government to acquire equity stakes in publicly traded companies. This move aims to strengthen domestic supply chains for semiconductors and critical minerals amid geopolitical tensions. 

While the intent to secure U.S. interests is clear, such interventions raise concerns. Government ownership may distort corporate decision-making, prioritize political goals over shareholder value, and invite regulatory scrutiny. It also blurs lines between public and private sectors, potentially undermining market efficiency. 

Yet, the “Trump portfolio” has delivered impressive results, averaging a 100% gain since the government acquired its respective stakes, driven largely by market euphoria over the vote of confidence. Much of this surge reflects speculative hype rather than fundamentals. As gains cool and risks like trade disputes grow, are these stocks still worth buying?

MP Materials (MP)

MP Materials(NYSE:MP) was the first company Trump bought, securing a 15% stake for the Pentagon on July 10 through $400 million in convertible preferred stock plus warrants. It made the federal government its largest shareholder. The deal funds rare earth magnet production at Mountain Pass, California, critical for EVs and defense technology.

MP stock has surged 160.9% from $30 to over $78 per share today, boosted by the deal and Trump’s new 100% tariff threat on China, after Beijing tightened rare earth export controls. The announcement made via a Truth Social post, capped a near-10% weekly jump.

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Is it a buy? Yes, it remains attractive. China’s 90% supply dominance and trade tensions create a moat for MP Materials. Analysts had a $78 per share price target, supported by EBITDA growth from new facilities, but the new tariff regime could boost those targets higher. 

Despite lithium volatility risks, government alignment strengthens its case, and MP remains a buy for tariff-driven upside.

Intel (INTC)

ChipmakerIntel(NASDAQ:INTC) was Trump’s second acquisition, finalized on August 22, with the government acquiring a 10% stake. It consisted of 433.3 million shares at $20.47 each — some $8.9 billion — that saw the conversion of CHIPS Act and Department of Defense grants into equity to fund U.S. chip fabrication. The goal is to reduce reliance on foreign semiconductors.

Since the acquisition, Intel’s stock has risen 46.7%, trading near $36, up from the under-$25 purchase price. This gain reflects optimism for domestic foundries, though competition fromAdvanced Micro Devices(NASDAQ:AMD) andNvidia(NASDAQ:NVDA) remains fierce. Execution risks persist due to losses in Intel’s core business.

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Is it a buy? With a forward P/E of 54, Intel is pricey, but still offers value as it has become the go-to stock for foundry partners. Nvidia invested $5 billion into Intel whileMicrosoft(NASDAQ:MSFT) will leverage Intel’s 18A process technology to have it manufacture custom AI chips. Previously,SoftBankinvested $2 billion for an equity position.

Government backing provides stability, yet it may hinder market agility. Long-term investors should hold for upside, while short-term traders might wait for a dip.

Lithium Americas (LAC)

Trump kicked off October by taking a 5% stake inLithium Americas(NYSE:LAC) as well as a 5% position in the Thacker Pass joint venture via no-cost warrants tied to a $2.26 billion DOE loan. The deal supports Nevada’s lithium mine for electric vehicle batteries, targeting production by 2027.

The stock has gained only 6.4% in the 10 days since the deal, as it still labors under an 80% drop in lithium prices since 2022, which has dampened enthusiasm despite government support.

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Is it a buy? It’s a cautious yes. Thacker Pass holds 20% of U.S. reserves, and DOE funding ensures progress, but EV demand is waning, especially after the end of EV tax credits.Ford(NYSE:F) recently said it expects its EV sales to be cut in half as a result.

At a price-to-book of 1.7, LAC looks undervalued, but investors should wait for lithium prices to recover before buying.

Trilogy Metals (TMQ)

Trilogy Metals(NYSEAMERICAN:TMQ) finalized a 10% Defense Dept. stake on October 6, through a $35.6 million private placement of 8.2 million units at $2.17 Canadian, including warrants for 7.5% more. The deal funds Alaska’s Ambler copper and zinc exploration for green technology.

The stock has soared 183.7% from $2.09 to $5.93 per share, but had been as high as $7.98 on Oct. 7, after the deal was announced.

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Is it a buy? Only the most risk-tolerant speculators should consider a position, and even then it’s doubtful. Trilogy not only is a loss-generating stock, it also has no revenue. Ambler’s potential is significant, but permitting and logistics delays limit near-term output.BMO Capital Marketsjust downgraded the stock to Market Perform with a $5.50 per share target, suggesting TMQ is a high-risk, high-reward opportunity best suited for aggressive investors.

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Investing

Discover the Elite Stocks Delivering 12%+ Yields for Ultimate Passive Income Domination

2025-12-01 09:58:38

-->-->Key PointsNLY, BGS, TXO, and ARR are worthy stock picks for ambitious investors seeking dividend yields of 12% or more.Still, it’s important to know that these mega-yield stocks involve some risk and are only suitable for small share position sizes.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Are you ready to enjoy a high-dividend lifestyle? Today is a great day to bolster your passive income potential with four stocks featuring forward annual dividend yields that exceed 12% as of Oct. 3, 2025.We like to cover high-yield dividend stocks because, while they may involve higher risk, investors can pair them with more safety-oriented stocks for a “barbell approach.” The key is to stay diversified, maintain small position sizes and don’t overload your portfolio with too many mega-yield stocks at once.Furthermore, you can mitigate your risk by having an exit strategy in case the share price of a high-dividend stock falls too much and/or the dividend gets cut. It’s also important to research every company and be able to answer some basic factual questions.These questions can include: What does the company do to make money? Does the company’s recent history of dividend payments show consistency and even a dividend increase? In addition, does the company have a reasonable amount of cash and cash equivalents, preferably in the millions of dollars?The following four high-paying dividend stocks carry some risk but also have enough green flags to be worth considering. So, check out these big-yield standouts that could help you achieve passive income dominator status in 2025.1. Annaly Capital Management (NLY)Loading stock data...Annaly Capital Management(NYSE:NLY)describes itself as a “diversified capital manager with investment strategies across mortgage finance.” While some people might classify the company as a real estate investment trust or REIT, Annaly Capital Management mainly focuses on mortgage lending.Looking through the company’s recent history, we can see that Annaly Capital Management pays a dividend once every three months. Earlier this year, the company increased its quarterly per-share cash payments from $0.65 to $0.70.If we annualize those distributions and assume that there won’t be any imminent dividend cuts, we can estimate that Annaly Capital Management will at least pay out $2.80 ($0.70 x 4) in dividends per year. If the NLY share price is around $20.75, this would equate to a forward annual dividend yield of $2.80, or 13.5%.Finally, we should answer the question of whether Annaly Capital Management has sufficient capital reserves to continue paying those quarterly dividend distributions. As of June 30, 2025, the company had cash and cash equivalents (including certain pledged assets) exceeding $2 billion. Hence, passive income collectors probably don’t have to worry about the near-term sustainability of Annaly Capital Management’s dividend payments.2. B&G Foods (BGS)Loading stock data...The companies that offer 12% or greater dividend yields tend to be in the financial and/or real estate sectors. However,B&G Foods(NYSE:BGS)breaks the mold as it’s a mega-yielder that happens to be packaged foods distributor. Some of the company’s recognizable brands include Crisco, Green Giant, Ortega, and Cream of Wheat.A quarterly cash distribution payer, B&G Foods doesn’t appear to have hiked its dividend recently. Nevertheless, it’s a positive sign that B&G Foods has maintained steady dividend payments of $0.19 per share.If the BGS stock price is roughly $4.55, then the company’s forward annual dividend yield would be (($0.19 x 4) / $4.55). This comes out to a juicy 16.7% yield, assuming no dividend cuts in the next 12 months.Is this a sustainable dividend, though? Most likely the answer is yes, as B&G Foods held ample cash and cash equivalents totaling $54.084 million as of June 28, 2025.3. TXO Partners (TXO)Loading stock data...Now, here’s another supersized dividend distributor that’s not in the financial or real estate sector. It’sTXO Partners(NYSE:TXO), a a master limited partnership (MLP) that acquires and develops oil and gas properties.Over the past year, TXO Partners has paid quarterly per-share dividends of $0.58, $0.61, another $0.61, and $0.45. Investors should closely monitor the future trajectory of the company’s dividend distributions to ensure that they’re not getting cut too deeply.For the time being, however, TXO Partners offers a tempting yield. Specifically, if we assume a TXO share price of approximately $14 and no dividend cuts in the next 12 months, then the company’s forward annual yield would be (($0.45 x 4) / $14), or 12.9%.Regarding TXO Partners’ capital position, this will undoubtedly fluctuate since that’s the nature of energy property developers. It’s fairly encouraging to learn, though, that the company held cash and cash equivalents totaling $7.953 million as June 30, 2025, suggesting a respectable store of capital.4. ARMOUR Residential REIT (ARR)Loading stock data...Jumping back into the real estate market,ARMOUR Residential REIT(NYSE:ARR)primarily invests in residential mortgage-backed securities. Just to be clear, ARR stock would expose your portfolio to mortgage interest rates, so that’s a factor to keep tabs on.Here’s a switch-up for you: ARMOUR Residential REIT distributes its cash dividends every month instead of just every quarter. During the past year, the company has been impressively consistent in delivering per-share dividend payouts of $0.24 per month.If you can tolerate the ups and downs of the sometimes volatile real estate sector, you might be rewarded with outstanding yield from ARR stock. An assumed share price of around $15.50 would mean that ARMOUR Residential REIT offers a forward annual dividend yield of (($0.24 x 12) / $15.50), or 18.6%.Glancing at the company’s financials, ARMOUR Residential REIT reported a sizable cash and cash equivalents position of $141.166 million as of June 30, 2025. Consequently, barring any unexpected changes, ARR stock has the makings of a reliable dividend deliverer for aspiring passive income mavens.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

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Investing

Could This Be One of Jim Cramer’s New Favorite AI Stocks Right Now?

2025-12-01 09:58:38

Mad Money host Jim Cramer has made it pretty clear in the past thatNvidia(NASDAQ:NVDA) was his favorite AI stock. Indeed, he went as far as to name his dog Nvidia to get the point across. And while Cramer is still fond of the stock and its legendary founder, Jensen Huang, Cramer has really sounded upbeat about shares of iPhone makerApple(NASDAQ:AAPL), which has dragged its feet relative to the other six members of the Magnificent Seven.With shares of the name getting slammed on the iPhone 17 keynote, only to gain back the ground and then some in the following sessions in response to hot demand for the device (the lineups are back and the Apple Store is packed), perhaps Apple might be the AI stock that has the most ground to run as it looks to close the gap with its rivals in the new year.-->-->Key PointsJim Cramer is one of the few folks who recognize Apple’s AI strategy for what it is.Perhaps Apple can win the AI race without having to spend as much as its rivals.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Apple shares are gaining again. Perhaps the sellers during the iPhone 17 reveal were wrong to sell.Indeed, it’s not hard to imagine that many AI investors are getting impatient with shares of Apple, even after its latest September surge of around 10%. Year to date, AAPL stock is up just over 4%, falling well short of your average Magnificent Seven member. And with a lack of AI in the latest keynote, investors are likely feeling in the dark when it comes to the AI strategy. Still, Cramer astutely noted that Apple doesn’t really need to spend money hand over fist to catch up in AI. Indeed, with the favorable judge ruling for Google ofAlphabet(NASDAQ:GOOG), Apple may still be able to go ahead to let AI model makers compete for a spot on the mighty iPhone.If anything, Google may need to pay Apple to have Gemini as a default model on its devices in the future, pretty much mirroring the search deal that’s been in place for quite a while.“Turns out Apple always had an AI strategy: pay to play.” said Cramer. That sums up Apple’s plans in a nice nutshell.In any case, Cramer is right in that Apple does have “all of the cards.” It has a massive installed base, which clearly has not gone anywhere, even with no spruced-up Siri in the latest iOS 26. Indeed, Apple fans seem more than willing to wait for the juggernaut to catch up on AI. Otherwise, we wouldn’t be seeing the crowds over at the local Apple Store, trying to get their hands on the iPhone 17 as well as the new iPhone Air.Apple’s AI approach is likely highly underratedCould it be that Apple has all the leverage to walk away as one of the big winners from the AI race without having to spend as much to stockpile Nvidia GPUs while paying a fortune to train models? I think that may very well be the case. While Apple is still committing to spend a great deal on AI data centers, I do think that the odds are high that Apple will not only see a return on AI spend, but a high one that might be the envy of the industry.Though Cramer hasn’t explicitly referred to Apple as his new favorite AI stock, I am encouraged by his commentary at a time when most others are likely ready to throw in the towel on the Cupertino-based giant. If you sold the stock on the keynote, you’re probably in a tough spot, wondering if it’s worth buying back at around $255 per share.Given the sweet deals that only Apple can ink in AI and the recently rumored AI search product that could help Siri as soon as next year, I think it’s no longer fair to deem that Apple is behind on AI. When it comes to monetization potential, perhaps Apple might be ahead. And with growing calls for profitability on AI spend, perhaps Apple stock could be granted a free pass if the AI trade goes through its next big correction.The bottom lineI think Cramer is right to stand by Apple, especially with the growing number of skeptics and critics who don’t see that Apple is playing the long-term game with its AI strategy. Why rush ahead with a commoditized model when you can play the long game and potentially earn handsomely for doing so?Though I don’t always agree with Cramer, I think his bold, contrarian view of Apple and its AI plans could make his listeners a lot of money. It’s certainly the best take on Apple I’ve heard all year, as it really clears the air on the real opportunity for Tim Cook and company.As the iPhone 17 kicks off a nice upgrade cycle (maybe a super cycle?) while new AI efforts come to light, I think Apple stock is a great comeback play, even at 38.8 times trailing price-to-earnings (P/E).If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)

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Investing

4 Ultra-High-Yield Stocks With 9% Dividends Everyone Forgot About

2025-12-01 09:58:38

Investors lovedividend stocks, especially those with ultra-high yields, because they provide a substantial passive income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends.-->-->24/7 Wall St. Key Points:Passive income combined with Social Security can make monthly expenses a lot easier to handle.The advantage of owning ultra-high-yield stocks is that any increase in share price can contribute to a higher total return percentage.Our “forgotten” stocks all yield a whopping 9% or more and have the advantage of not being terribly overbought, unlike the overall stock market.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->We decided toscreen our 24/7 Wall St. blue-chip dividend stock database, looking for companies that yield 9% or more but are always forgotten by growth and income investors. Four stocks caught our attention, and once investors realize they have also overlooked them, it might be time to take a closer look. While these stocks may not be suitable for everyone, investors looking to build strong passive income streams could benefit from including some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams.Why do we cover ultra-high-yield dividend stocks?Since 1926,dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).Ares CapitalLoading stock data...The companyspecializes in providing financing solutions for the middle market and appears poised to reach new highs, garnering a Buy rating from 12 analysts and yielding a 9.34% return. Ares Capital Corp. (NASDAQ: ARCC) is a high-yielding business development company (BDC). It specializes in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle-market companies.It also providesgrowth capital and general refinancing. It prefers to invest in companies engaged in basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology sectors.The fund willalso consider investments in industries such as:RestaurantsRetailOil and gasTechnologyIt focuses on investmentsin the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office, the Midwest region from the Chicago office, and the Western region from the Los Angeles office.The fund typicallyinvests between $20 million and $200 million, with a maximum investment of $400 million, in companies with an EBITDA between $10 million and $250 million per year. It makes debt investments between $10 million and $100 million.The fund investsthrough:RevolversFirst-lien loansWarrantsUnitranche structuresSecond-lien loansMezzanine debtPrivate high yieldJunior CapitalSubordinated debtNon-control preferred and common equityThe fund alsoselectively considers third-party-led senior and subordinated debt financings and opportunistically acquires stressed and discounted debt positions.Ares Capitalprefers to be an agent and lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.Wells Fargohas an Overweight rating, accompanied by a $23 target price.CTO Realty GrowthLoading stock data...CTO Realty GrowthInc. (NYSE: CTO) is a publicly traded real estate investment trust (REIT) that owns and operates a portfolio of high-quality, retail-based properties. With a rich 9.52% dividend and solid upside potential, this lesser-known REIT makes sense for passive income investors. CTO owns and operates a portfolio of high-quality, retail-based properties located primarily in higher-growth markets in the United States. With a 96% leased occupancy rate and a strategy targeting high-yield acquisitions, it offers strong income potential. It has paid dividends for 48 consecutive years, reflecting reliability. In addition, CTO’s smaller market cap and focus on retail REITs in specific growth markets make it less visible compared to larger, more diversified REITs.The company’ssegments include:Income propertiesManagement servicesCommercial loans and investmentsReal estate operationsThe CTO holds astake in Alpine Income Property Trust (NYSE: PINE), a publicly traded net lease REIT, adding to its diversification. With a 96% leased occupancy rate and a strategy targeting high-yield acquisitions, CTO offers strong income potential and has paid dividends for 48 consecutive years, reflecting its reliability.The commercialloans and investments segment includes a portfolio of five commercial loan investments and two preferred equity investments.Its incomeproperty operations consist of income-producing properties.CTO RealtyGrowth’s business includes its investment in Alpine Income Property Trust. The portfolio of properties includes:Carolina PavilionMillenia CrossingLake Brandon VillageCrabby’s OceansideFidelityLandShark Bar & GrillGranada PlazaThe Strand at St. Johns Town CenterThe Shops at LegacyPrice PlazaRaymond Jameshas a Strong Buy rating on the shares with a $22 target price.Delek Logistics PartnersLoading stock data...While way offthe radar of many investors, this midstream giant may be our top “Forgotten stocks” idea for investors. Delek Logistics Partners L.P. (NYSE: DKL) is a midstream energy master limited partnership with a substantial 9.80% dividend yield. The company provides gathering, pipeline, and other transportation services for crude oil and natural gas customers, as well as storage, wholesale marketing, and terminalling services.Its segmentsinclude gathering and processing:Wholesale marketing and terminallingStorage and transportationInvestment in pipeline joint venturesThe gatheringand processing segment consists of:Midland Gathering AssetsMidland Water Gathering AssetsDelaware Gathering AssetsThe marketingand terminalling segment provides wholesale marketing and terminalling services to Delek’s refining operations and to independent third parties.The storage andtransportation segment comprises tanks, offloading facilities, trucks, and ancillary assets that provide transportation and storage services for crude oil, intermediates, and refined products. Its operations also include integrated full-cycle water systems in the Permian Basin.Raymond Jameshas a Buy rating with a $46 target price.Starwood Property TrustLoading stock data...Starwood Capitalis a well-established global investor with international investments spanning over 30 countries and is an affiliate of this high-yielding company, which boasts a 9.61% dividend yield led by real estate legend Barry Sternlicht. Starwood Property Trust Inc. (NYSE: STWD) operates as a REIT in the United States, Europe, and Australia.It operatesthrough four segments:Commercial and Residential LendingInfrastructure LendingPropertyInvesting and ServicingThe Commercialand Residential Lending segment originates, acquires, finances, and manages:Commercial first mortgagesNon-agency residential mortgagesSubordinated mortgagesMezzanine loansPreferred EquityCommercial mortgage-backed securities (CMBS)Residential mortgage-backed securitiesThe Infrastructurelending segment originates, acquires, finances, and manages infrastructure debt investments.The Propertysegment primarily develops and manages equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, which are held for investment purposes.The Investingand Servicing segment:Manages and works out problem assetsAcquires and contains unrated, investment-grade, and non-investment-grade rated CMBS comprising subordinated interests of securitization and re-securitization transactionsOriginates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trustsKeefe, Bruyette, and Woodshas an Outperform rating, accompanied by a $22 price target.As Warren Buffett Indicator Signals Danger, His Four Highest-Yielding Stocks Offer SafetyIf You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)

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Investing

Schwab US Dividend Equity ETF (SCHD) Hits Depressing Milestone of 0% Returns As Markets Rip

2025-12-01 09:58:38

The Schwab US Dividend Equity ETF (SCHD) is one of the most popular ETFs in the world today. With nearly $70b in AUM, it’s also one of the largest.The ETF has been a popular choice for income seekers, retirees, and conservative investors looking for yield. Currently, the ETF pays a hefty 3.9% yield. That’s meaningfully more than other ETFs and options, like the VOO, and SPY which track the S&P 500 which pay out 1.25%.But that conservatism has come at a price. The S&P 500 has just hit an all-time high and is up 14% YTD already, while the Nasdaq is doing even better, just hitting 18% YTD returns.And during this bull market the Schwab US Dividend Equity ETF has more or less returned 0.0% year-to-date. Exactly flat.Why such a horrible underperformance? It just comes down to the assets SCHD holds and how they structure the ETF. First, no single stock can exceed 4% of the index’s total weight. Take a look at the top four positions below:HoldingYTD ReturnYieldAbbVie+31%2.85%Lockheed Martin+5.2%2.57%ConocoPhillips-3.97%3.29%Cisco Systems+16.5%2.38%Most have had a pretty good year! But unfortunately, now all of them exceed the 4% threshold so in the upcoming rebalancing of the ETF will have to be trimmed out. Functionally, this can limit the ETF’s exposure to stocks or sectors performing well each year.The ETF also holds some total dogs as well, including shares in chronic under-performer Target, which is down 35% YTD, PepsiCo which is down 6.3% YTD, and United Parcel Services (UPS), which is down 31% YTD.And the disappointment doesn’t end there. Over the last 5 years the ETF is only up 39%. While that may sound great at first, the S&P 500 is up 93% over the same period. Add it all up and you have a high yielding, diversified disappointment for investors.All of that is to say, the Schwab US Dividend Equity ETF’s structural issue and chronic under-performance dramatically outweigh the value of the income it provides.

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Investing

3 Sizzling Ultra-High-Yield Stocks Under $50 With Upside Potential

2025-12-01 09:58:38

Investors can have their higher yields and capital appreciation potential, too. But, of course, there are always added risks to consider, and when it comes to the hard-hit higher-yielders out there, the fundamentals and growth narrative have taken a turn for the worse. As their share prices have slid, their yields have swelled, but with their managers hard at work on turnaround efforts, there is still the potential for upside.And in this piece, we’ll check in on four “sizzling” higher-yielding names going for less than $50 per share that still have potential for upside. Indeed, that checks a lot of boxes for yield-hungry investors who also desire capital gains and a bite-sized price of admission. In any case, many of the higher-yielding stocks have fallen so much that their share prices are well below the $50 mark. The big question is whether they can appreciate while keeping their dividends intact and perhaps in a position to grow further. Let’s quickly check on three names worthy of your radar.-->-->Key PointsDIN, WEN and PFE stand out as high-yielders with low share prices and considerable upside if things go right for a change.With rock-bottom valuations and expectations, lofty yields, and plans to turn things around, the following plays might be bountiful ways to score a different kind of upside.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Dine BrandsDine Brands(NYSE:DIN), currently going for $25 and change, is a mid-cap ($388 million market cap) dine-in restaurant play that’s seen more than its fair share of challenges over the years. The stock has imploded by more than 76% and now sports a yield of 8.1%. Indeed, the dividend may be a huge commitment, but it still looks quite well covered with a payout ratio that’s still under 70%.The firm behind Applebee’s and IHOP faces tremendous competition, and if the consumer is in for a hit if unemployment rises further from here, Dine Brands’ woes could continue for longer. Indeed, there are significant margin pressures, but the balance sheet remains in decent condition.Free cash flows are still in a good spot and can keep the dividend intact as management looks to pursue efforts to offset the scars dealt by inflation (higher labor and ingredient costs). For patient investors betting on consumer resilience, I like the name at 8.4 times trailing price-to-earnings (P/E) for the dividend and the potential for multiple expansion as IHOP looks to follow up on the relative strength in Applebee’s in the last quarter.Wendy’sSticking with the restaurant theme, we have the home of the sizzling Dave’s Double inWendy’s(NYSE:WEN), which, like Dine Brands, has been up against it of late. At $8 and change with a 6.4% yield, shares look tempting, just like the Wendy’s eats.And at 9.1 times trailing P/E, you’re certainly not paying a high price for a firm that seems to have only the negatives priced in. After sagging 64% from its high, WEN stock has hit new multi-year lows. And I think the $1.66 billion fast-food chain is worth buying now that there’s a turnaround plan in place.The “Project Fresh” strategic plan could pay big dividends for investors willing to step in here. While it’s a plan that takes time and effort, I do think income investors seeking upside ought to consider nibbling at these unprecedented depths. Wendy’s has taken a bit hit, but it’s still a cherished brand and one with comeback potential.PfizerFinally, we have troubled pharma stockPfizer(NYSE:PFE), which is right back below $25 per share after the TrumpRX deal luster wore off in the past two weeks. In a prior piece, I corrected predicted that the sudden bounce in PFE stock would be short-lived, likely due to the margin hit of lower drug prices and the potential for other pharma firms to make similar deals with the Trump administration, rendering Pfizer’s deal less meaningful.Now that most of the TrumpRX hype is out of the stock, should investors look to buy while the yield flirts with a 7% yield again? And is there still more than 33% upside in the stock as investors turn their back on the name? I think the latest dip is buyable, especially for those tempted by the 7% yield. The stock faces a slew of challenges as it hopes to get its growth engine humming again.Though I view significant uncertainty with the name (as is the case with most biopharma firms facing patent cliffs), even at today’s seemingly depressed valuations, risk-takers might wish to be a net buyer of the dip. If Pfizer can pull a blockbuster from its pipeline, the upside could have the potential to be gargantuan. Until then, I’d rather sit patiently on the sidelines.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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Investing

4 Bank of America Strong Buy Growth 10 Stocks That All Pay Dividends

2025-12-01 09:58:38

BofA Securitiesis the investment banking and capital markets division of Bank of America, one of the largest financial institutions in the United States. The division provides a comprehensive range of services, including equity and debt underwriting, mergers and acquisitions advisory, sales and trading, research, and capital markets solutions to corporate, institutional, and government clients worldwide. As a major player on Wall Street, Bank of America Securities competes with other bulge-bracket investment banks and maintains a significant market share across various financial services sectors.-->-->24/7 Wall St. Key Points:With a highly overbought stock market, investors will demand strong earnings to justify the current high valuations.Bank of America’s Growth 10 stocks, which also pay solid dividends, are the ideal pick for growth and income investors now.Dividend-paying stocks are expected to perform well as interest rates continue to decline throughout the rest of the year and into 2026.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->One of ourreaders’ favorite lists is the Growth 10 List, which is a quantitatively generated portfolio of 10 stocks with high expected earnings growth. BofA Global Research analysts select from the most attractive stocks in the S&P 500. Four of the top companies are now outstanding ideas, two of which are in the healthcare sector, which has underperformed this year, and all are rated Buy by Bank of America.Why do we cover Bank of America stocks?BofA Securitiesis one of the top firms on Wall Street, and we have covered the company’s curated stock lists for years. These are the absolute best ideas across several categories, and the firm’s top equity analysts have thoroughly vetted all the stock picks.AllstateLoading stock data...This insurancegiant increased its dividend by 8.7% earlier this year and currently pays a dividend yield of 1.82%. Allstate Corp. (NYSE: ALL) provides property, casualty, and other insurance products in the United States and Canada.It operatesin five segments:Allstate ProtectionRun-off Property-LiabilityProtection ServicesAllstate Health and BenefitsCorporate and otherThe companyoffers private passenger auto, homeowners, personal lines, and commercial insurance products through agents, contact centers, and online, as well as property and casualty insurance. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, protection, and insurance products, such as identity protection and restoration through:Allstate Protection PlansAllstate Dealer ServicesAllstate RoadsideArityAllstate Identity Protection brandsIn addition,the company offers life, accident, critical illness, hospital indemnity, short-term disability, and other health insurance products; self-funded stop-loss and fully insured group health products to employers; Medicare supplement, ancillary products, and short-term medical insurance to individuals through independent agents, owned agencies, benefits brokers, and Allstate exclusive agents; and net investment income, net gains on investments, other revenue, debt service, holding company activities, and certain non-insurance operations.The companyalso offers automotive protection, vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection, as well as roadside assistance, mobility data collection services, and analytical solutions utilizing automotive telematics information. Additionally, it provides identity theft protection and remediation services.BofA Securitieshas a huge $286 target price.Gilead SciencesLoading stock data...Gilead SciencesInc. (NASDAQ: GILD) is a biotech giant that pays a solid 2.77% dividend and offers outstanding total return potential in 2025 and 2026. This biopharmaceutical company discovers, develops, and commercializes medicines for unmet medical needs in the United States, Europe, and elsewhere.The companyprovides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild, Sunlens, and Atripla products for the treatment of HIV/AIDS. Additionally, it offers Veklury, an intravenous injection for the treatment of COVID-19, as well as Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis.It also offersYescarta, Tecartus, and Trodelvy products for oncology treatment; Letairis, an oral formulation for treating pulmonary arterial hypertension; and AmBisome, a liposomal formulation for treating serious invasive fungal infections.Gilead Scienceshas collaboration agreements with:Arcus BiosciencesMerck Sharp & DohmePionyr ImmunotherapeuticsTizona TherapeuticsGalapagosJanssen Sciences Ireland UnlimitedJapan TobaccoDragonfly TherapeuticsArcellxEverest MedicinesMerckTentarix BiotherapeuticsMarengo TherapeuticsAssembly BiosciencesIt also hasresearch collaboration, option, and license agreement with Merus to discover novel dual tumor-associated antigens targeting tri-specific antibodies.Bank of Americahas a $140 target price for the shares.MerckLoading stock data...This healthcaregiant is a no-brainer, down over 30% over the past year while paying a solid 3.97% dividend. Merck & Co. Inc. (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. It is not just a healthcare company but a global force in the industry. The company operates through two segments.The Pharmaceuticalsegment offers human health pharmaceutical products in:OncologyHospital acute careImmunologyNeuroscienceVirologyCardiovascularDiabetesVaccine products, such as preventive pediatric, adolescent, and adult vaccinesThe Animal Healthsegment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.Merckserves:Drug wholesalersRetailersHospitalsGovernment agenciesManaged healthcare providers, such as health maintenance organizationsPharmacy benefit managers and other institutionsPhysiciansPhysician distributorsVeterinariansAnimal producersMerck’s growthis a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.Bank of Americahas a target price of $98.TKO GroupLoading stock data...While offthe radar, this sports and entertainment company could prove to be the top Growth 10 idea with a 0.37% dividend. TKO Group Holdings Inc. (NYSE: TKO) owns properties including Ultimate Fighting Championship (UFC), a mixed martial arts organization; World Wrestling Entertainment (WWE), a sports entertainment outfit; and Professional Bull Riders (PBR), a bull riding organization.It alsoservices and partners with sports rights holders through IMG, a global sports marketing agency, and On Location, an experiential hospitality.Its segmentsinclude:UFCWWEIMGThe UFCsegment reflects the business operations of the UFC, which consist of media rights fees associated with the distribution of its programming content, ticket sales, and site fees related to the business’s global live events, as well as partnerships, marketing, and consumer product licensing agreements for UFC-branded products.The WWEsegment reflects the business operations of WWE.The IMG segmentincludes IMG business and On Location. IMG Business is an independent global distributor of sports programming.Bank of Americahas set a $210 target price.Four Stocks That Yield at Least 12% Are Passive Income KingsIf You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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Investing

VOO, VEA, VWO: Which Stellar Vanguard ETF is the Best Bet?

2025-12-01 09:58:38

In this piece, we’ll have a closer look at three of the most popular Vanguard ETFs out there. Undoubtedly, there’s quite a bit of overlap between many of these go-to ETFs. In any case, they remain a stellar option for passive investors looking for broad exposure and the absolute lowest expense ratios out there.Though choosing to stock-pick ones way to market-beating returns is a worthy pursuit for some of the more experienced investors out there, especially as concentration risks rises with funds that passively follow something like the S&P 500 or something broader, you really can’t go wrong with any one of the Vanguard ETFs if you’re out of ideas for individual names to buy (mixing single stocks and ETFs is a smart move, especially for beginning DIY investors) or if you’re looking to automate your investing with something quick, easy, and effective.In any case, let’s go over three of Vanguard’s most popular options nowadays and see which standout ETFs might be worth your hard-earned investment dollars in today’s frothy-looking, AI-driven stock market.-->-->Key PointsVOO, VEA, and VWO are some of the most popular Vanguard ETFs for a reason.The trio of ETFs seem best bought together, given what they add to a portfolio.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Vanguard S&P 500 ETFFirst, we have theVanguard S&P 500 ETF(NYSEARCA:VOO), which is pretty much the go-to if you’re looking to bet on the S&P 500 while keeping your expense ratio low and your liquidity high. As the name of the VOO suggests, it follows the S&P 500. In other words, it is the market, and by buying the VOO, you’re going to get market returns. Nothing more, nothing less. Some think that settling for the S&P is to leave excess risk-adjusted returns on the table.However, if you don’t have time or are simply fine with buying the broad market (even with its concentration in the big-tech stocks), there’s no problem with buying the VOO after every paycheck without having to think too much about it. In fact, it might be better to buy the VOO, regardless of what the price action is.If you bought six months ago, when everyone was running scared over the Liberation Day tariffs, you went on to enjoy a gain of more than 35% in the following six months. Indeed, sometimes “settling” can be richly rewarding. And while a multitude of S&P 500 ETFs are available, I think you can stop with the VOO, which has a 0.03% expense ratio, making it one of the most efficient ways to own the market.Vanguard FTSE Developed Markets Index Fund ETFTheVanguard FTSE Developed Markets Index Fund ETF(NYSEARCA:VEA) is an increasingly popular ETF among American investors and for good reason. The domestic stock market is certainly getting a bit lofty. And with the non-stop chatter about AI bubbles and how the powerful bull market will end, the case for diversifying outside of the U.S. seems as strong as it’s been in a while. Like the VOO, the VEA has a rock-bottom 0.03% expense ratio, making it an easy buy for international diversification.Furthermore, the developed markets have been a source of solid, S&P-beating gains this year, with the VEA up just shy of 28% year to date versus the VOO’s 15% gain. Can the relative outperformance continue? It’s tough to tell, but there’s still a striking valuation gap between the U.S. and the rest of the world.The big question investors should ask is whether America’s AI advantage is worth the relative premium. Personally, I think it is. But that doesn’t mean you shouldn’t diversify internationally if you’re already heavy, if not all-in, on U.S. stocks.Vanguard Emerging Markets Stock Index FundVanguard Emerging Markets Stock Index Fund(NYSEARCA:VWO) is a great complement to the developed markets-focused VEA. With emerging markets, there’s more growth, but a choppier ride might also be in the cards.With considerable exposure to Chinese stocks, there’s also added risk. However, if you’re looking for a way to bet on the number-two AI superpower out there alongside other intriguing high-growth companies from across the globe, I think the VWO is an incredibly low-cost way to go, with its 0.07% expense ratio.If you’re already in the VOO and VEA, I think the VWO is a solid addition that allows investors to score greater value and underappreciated growth prospects. For investors looking to buy one of the following Vanguard ETFs, I’d encourage you to ask yourself what your portfolio is lacking. Do you lack international exposure? Are youIf You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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Investing

Can Intel Stock Realistically Reach $43—or is That A Pipe Dream?

2025-12-01 09:58:38

It’s been some number of years sinceIntel(NASDAQ:INTC) stock was this hot after spiking more than 45% in the past month alone. Since the July lows, the fallen semiconductor company has gained over 83%, and with recent investments from the likes of Nvidia(NASDAQ:NVDA) and the U.S. government, confidence is building as the firm looks to play catch-up.With Intel reportedly seeking an investment fromApple(NASDAQ:AAPL), which dropped use of its chips for its own many years ago, the red-hot INTC trade is starting to look interesting again. Of course, just because Intel has won over some investment dollars doesn’t mean that it’s in the clear.The foundry business has been losing significant sums of cash, and with pressure to keep spending more to restructure and turn things around, Intel is not going to be an overnight turnaround story. In fact, it may take five years or more to see investments really pay off and work their way into the stock.Of course, the recent wave of investments is a positive sign, but how much of the recent stock move is now overdone? It’s tough to tell. Even after the sudden surge, some analysts see higher highs in store for Intel stock over the year ahead.-->-->Key PointsIntel stock is gaining ground following the announcement of some big bets from Nvidia and the U.S. government.Some view the Nvidia bet as a game-changer, while others are a bit more skeptical. Either way, it’ll be interesting to see how the firm can execute amid its strategic turnaround.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Intel stock: Could $43 per share be in the cards?The current Street-high price target of $43 per share belongs to Benchmark, which believes a “watershed” moment is upon it after its deal with the great Nvidia. Indeed, Nvidia’s top boss Jensen Huang isn’t one to make investments or even strategic partnerships unless he sees real potential. Whether Nvidia’s vote of confidence is enough to justify backing up the truck on shares today (at around $35 per share), though, remains a big question on the minds of prospective buyers.Personally, I think the $43 price target, which entails around 28% in additional upside from Friday’s close, is entirely within reason, especially since Nvidia’s $5 billion stake is pretty much a blessing from one of the biggest forces in the world of AI chips.Jensen Huang and company know what they’re doing, and if they see potential in one of the foes they’ve bettered, I think investors should take notice. Of course, the x86 roadmap may seem like a thing of the past to some. Either way, I think it’s a mistake to rule out x86’s future entirely, especially now that Intel has some big backers behind it.Though I wouldn’t rush into INTC stock at these fresh 52-week highs (the stock has pretty much gone straight up when you look at the past-year chart), I would look to nibble on a few shares on a potential pullback between now and the end of the year. Who knows? If Apple and other influential tech titans step up with their own stake, I do think the latest spike could extend into October. Chasing Intel shares might not be the best move after the latest run-upFor every few bulls, there have been plenty of bears on Wall Street when it comes to Intel. The name was downgraded by Citi to sell just over a week ago. Perhaps the Nvidia investment headline is a bit overblown. Could it be more of a helping hand at rock-bottom prices rather than a big bet on “breakthrough?” It’s hard to tell.Either way, I view the risk of a correction as heightened, given the past-week run and the potential for shares to sag should no further big-name investment deals come flowing in. In any case, I wouldn’t hold my breath waiting for an Apple investment.If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)

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Investing

This This AI Stock Up Next For a Stock Split?

2025-12-01 09:58:38

Stock splits don’t create any value whatsoever, but when they are announced, they tend to attract considerable attention from retail investors. Indeed, more accessibility for everyday investors is a good thing, and while lower share prices may entice some to pick up a few shares, giving them a bit of a temporary jolt, it’s vital that investors don’t lose sight of what really matters: intrinsic value.Indeed, it doesn’t matter how many times you cut a share price; it’s the business itself that matters most. In any case, if you’re a retail investor who has always wished you could buy a stock likeMeta Platforms(NASDAQ:META) without having to put up just north of $700 for a single share, stock splits can be a huge piece of news, especially if a split happens at a good time.-->-->Key PointsMeta Platforms may have just corrected, but it’ll still cost you a great deal (over $700) for just one share.There’s no telling when a split will happen and how big it’ll be, but one has to think the odds will riseAre you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Meta Platforms is a hot AI contender that’s getting a bit too out of reach for small investorsWith Meta tripling down on the AI race, with shares priced at a still very modest 25.5 times trailing price-to-earnings (P/E), perhaps the only thing pricey about the stock is the price of admission itself.For now, Meta and its top boss, Mark Zuckerberg, have not announced their intention to split. However, I view the Magnificent Seven darling as having a high probability of one over the next two years, especially if shares continue to appreciate at such a blistering pace (something I expect as we begin to get a better gauge of the payoff following its aggressive efforts to grab much of the very best AI talent that’s out there).In the meantime, it’s mostly rumors about a split, but if there’s anything that would be a win for young, new investors, it’s a more affordable price of admission into the AI fast-mover.Meta stock could surpass $1,000 per share in the not-so-distant future—what then?Having a look at the Wall Street-high price target, which is sitting just shy of the $1,100 per-share level, I think the odds of a split could rise significantly over the year ahead.Of course, time will tell if such a bullish target (currently held by a very well-respected Rosenblatt Securities analyst Barton Crockett), which implies close to 55% in upside from Friday’s close, will be hit in a timely manner. Either way, I wouldn’t be so surprised if shares of Meta were to get right back into rally mode after recently dipping just shy of 11% from its all-time highs, just shy of $800 per share.In the meantime, tech stocks could stay in a slump for a while as investors digest the latest Trump 100% tariff threats on China. Indeed, such a macro shock could weigh down the whole market for a while longer. And if Meta stock does get caught in a continued downdraft, a stock split could be pushed further into the future.Meta stock is a buy, but not because it’s overdue for a splitAt the end of the day, Meta is moving fast with AI, but it’s not just the pace of advancement that has me most excited. Rather, it’s how the firm can utilize the profound technology as it looks to enhance its social media family of apps while taking digital advertising to the next level. Whether we’re talking about AI-made ads or AI-driven targeting, Meta looks to have one of the soundest AI monetization narratives in all of big tech.Perhaps the big opportunity for Meta is how AI can turn WhatsApp into a cash cow. With earnings growth poised to rise by the high-teens over the foreseeable future, it’s tough to bet against the name as it aims for the four-figure milestone, and, perhaps shortly after, a big 10-for-1 split.Arguably, the high chance of a split is the last reason to consider picking up a share today, or more, for those investors with a more significant sum to put to work.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be.Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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Investing

After Massive OpenAI Deal, Is AMD Stock Still a Buy?

2025-12-01 09:58:38

-->-->Key PointsAdvanced Micro Devices(AMD) announced a 6-gigawatt GPU supply deal withOpenAIyesterday, sparking a 24% stock rally.The agreement includes a warrant for OpenAI to gain up to 10% ownership in AMD via milestone-based shares.This validates AMD’s AI tech and projects $100 billion in four-year revenue from OpenAI and partners.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Advanced Micro Devices(NASDAQ:AMD) shocked investors yesterday with a landmark multi-year agreement to supplyOpenAIwith 6 gigawatts of its Instinct graphics processing units (GPUs), starting with 1 gigawatt in the second half of 2026. The deal, which could generate tens of billions in annual revenue for AMD, includes a warrant allowing OpenAI to acquire up to 160 million shares — roughly 10% of the company — for a nominal fee, tied to deployment milestones and stock price targets up to $600 per share. This positions AMD as a core compute partner for OpenAI’s AI infrastructure, building on prior collaborations like the MI300X and MI350X series. The news triggered a 24% surge in AMD stock, closing at $203.71 per share and adding over $63 billion to its market cap. For AMD, this validates its AI roadmap and opens doors to $100 billion in revenue over four years from OpenAI and other customers. It also signals growing demand for alternative AI chip solutions amid supply constraints. Yet with AMD’s stock now nearing its all-time high of $211 per share from March 2024, is the stock still a buy at these elevated levels?AMD Levels Up By Matching Nvidia’s AI PlaybookThe OpenAI pact catapults AMD into direct competition withNvidia(NASDAQ:NVDA), which inked a similar 10-gigawatt deal in September worth up to $100 billion in investments to fund OpenAI’s data centers. Both agreements highlight OpenAI’s strategy to diversify suppliers and build massive AI capacity — 23 gigawatts total across partners — while locking in chip volumes. For AMD, this means co-designing rack-scale solutions with OpenAI, boosting its software ecosystem like ROCm to rival Nvidia’s CUDA. Analysts see it as a “transformative” shift, proving AMD’s chips can handle frontier AI workloads at scale.Wall Street reacted swiftly.Jefferiesupgraded AMD to Buy from Hold, hiking its price target to $300 from $170 per share, calling it a “major validation” of AMD’s AI narrative.Melius Researchlifted its target to $300 from $200, whileStifelraised to $240 from $190 per share, emphasizing AMD’s elevated role in AI infrastructure. Truist Securitiesupped its own target to $273 from $213 per share, noting OpenAI views AMD as a primary partner, not just a Nvidia alternative. Consensus targets now average around $220 per share, implying 8% upside from current levels, with “Strong Buy” ratings dominating. These upgrades reflect expectations of 40% revenue growth in 2026, driven by data center sales jumping to over $10 billion annually.Advanced Micro Devices IncNASDAQ:AMD$238.60▲ $125.75(52.70%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$218.09Market Cap348.75BDay's Range$220.76 - $239.2452wk Range$76.48 - $240.10Volume108.48MP/E Ratio127.92Gross Margin9.57%Dividend YieldN/AExchangeNASDAQHidden Trap of the Circular Economics of AI DealsDespite the hype, there are significant risks associated with these deals, which form a tangled web: Nvidia’s $100 billion infusion into OpenAI’s funds purchases of both Nvidia and AMD chips, effectively subsidizing a rival. If OpenAI’s $500 billion valuation falters — it’s burning $2.5 billion in cash on $4.3 billion first-half revenue — delays in deployments could slash AMD’s projected inflows. Antitrust scrutiny will intensify, too, as regulators eye these ties for potential collusion in the $200 billion AI chip market. Geopolitical tensions over Taiwan supply chains add volatility. AMD’s valuation is also getting stretched thin at 52 times forward earnings, versus Nvidia’s 32 and well above its five-year historical 38 average. A broader AI slowdown, like waning hyperscaler spending, could trigger a 20% to 30% pullback. Plus, Nvidia’s 80% GPU market share means AMD must execute flawlessly on MI450 production ramps. OpenAI’s chip diversification aids in pricing leverage, but it caps AMD’s share if cheaper options emerge.Key TakeawayAt $203 (with shares jumping another 5% higher pre-market), Advanced Micro Devices trades at a premium, but the OpenAI deal de-risks its AI pivot and sets up multi-year tailwinds. With analyst conviction at peak levels and revenue visibility unmatched since the PC boom, the stock merits a buy.Adding to positions now and targeting $250 per share by mid-2026 recognizes how much the OpenAI deal demonstrates AMD’s AI moment has arrived.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. 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