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

2025-12-07 12:42:29 By Michael Jones

Key Points

  • NLY, 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)

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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)

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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)

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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)

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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 Stock

Looking 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.

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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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I have invested in dividends for 11 years—These income machines pay me every quarter without a hitch

2025-12-07 12:42:29

-->-->Key PointsI’ve built a dividend-focused portfolio over 11 years for consistent quarterly income amid market ups and downs.The three stocks below offer reliable payouts with yields from 2.4% to 2.8% and low-risk profiles.Long histories of increases — more than 50 years for each — ensure payments arrive without interruption.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)-->-->Over the past 11 years, I’ve built a portfolio centered on steady dividend payers, stocks that deliver reliable income quarter after quarter. No drama, no surprises — just consistent checks hitting my account like they’re on autopilot. It’s a strategy that’s weathered market dips, inflation spikes, and everything in between, turning what could be a volatile ride into a smooth path to financial security. Below are three stocks that have proven themselves as a dependable income source, with histories of on-time payments and growing payouts. Let’s break down why these picks keep delivering without missing a beat.Sysco (SYY)Sysco(NYSE:SYY) stands out as a cornerstone in my dividend setup, handling the massive job of distributing food and supplies to restaurants, schools, and healthcare spots across North America. As the world’s largest foodservice distributor, it taps into an essential industry — people always need to eat, no matter the economy. I’ve held Sysco shares for years in my dividend growth portfolio, and it’s never once delayed a payout. The company has raised its payout for 55 straight years, a streak that underscores its reliability.In its last fiscal year, revenue climbed 3.2% to $81.4 billion, driven by improving volumes in its core U.S. operations. Adjusted earnings per share hit $4.46 per share, up from the prior year, supporting a free cash flow (FCF) payout ratio around 47% — plenty of room for future hikes without straining the books. Loading stock data...The current quarterly dividend sits at $0.525 per share, yielding about 2.7% at today’s prices. That’s not flashy, but it’s backed by solid FCF of $1.8 billion annually, ensuring those payments land every time.Sysco’s edge comes from its scale: a network of 330 distribution centers serving 730,000 customers. Even during the pandemic, when restaurants shut down, Sysco pivoted to grocery and institutional sales, keeping dividends intact. Today, with dining out growing but consumers remaining cautious, Sysco is positioned for steady gains.I reinvest those quarterly checks, compounding my position without lifting a finger. It’s the kind of stock that lets me sleep easy, knowing income flows regardless of headlines.ABM Industries (ABM)When I think of unsung heroes in the dividend world,ABM Industries(NYSE:ABM) tops the list. This company provides facility services — janitorial, maintenance, and engineering for offices, airports, and stadiums — essentials that businesses can’t skip. ABM is another stock I’ve owned for years, and its quarterly dividends have arrived like clockwork, even through economic slowdowns that hit commercial real estate. With 57 consecutive years of payment increases, it’s earned its spot as a low-key powerhouse in my portfolio.Loading stock data...ABM’s appeal lies in its diversified revenue streams and lean operations. Last year, it posted $8.4 billion in sales, a 3.2% jump, fueled by aviation and technical solutions segments that grew double digits. Adjusted net income rose to $227.3 million, keeping the FCF payout ratio at a comfortable 34% on earnings of $3.57 per share. The quarterly dividend is $0.265 per share, delivering a 2.3% yield — solid for an industrial stock with growth potential.Resilience is ABM’s middle name. During 2023’s office vacancy surge, it shifted focus to healthcare and education clients, where demand held firm. As hybrid work stabilized, airports are buzzing with U.S. passenger traffic above pre-pandemic levels. Management’s emphasis on margin expansion, via tech like AI-driven energy audits, means more cash for shareholders. Those reliable quarters add up, quietly building my income stream while I focus elsewhere.AbbVie (ABBV)AbbVie(NYSE:ABBV) rounds out my trio as the high-octane dividend engine, a biopharma leader churning out treatments for immunology, oncology, and neuroscience. Spun off fromAbbott Labs (NYSE:ABT) in 2013, it’s become a standalone beast, and I’ve held ABBV stock for over a decade, providing me with years of flawless quarterly dividends. With 52 years of increases under its belt (including time inherited through Abbott’s heritage), AbbVie pays $1.64 per share every three months, yielding 2.8% and making it one of my portfolio’s income anchors.The numbers back the hype: 2024 revenue hit $56.3 billion, up 3.7%, led by blockbusters like Skyrizi and Rinvoq, which offset Humira’s patent cliff. Adjusted earnings of $10.12 per share led the headline payout ratio to exceed 200% due to non-cash charges, but FCF growing at nearly 20% annually for the past decade more than covers dividends. AbbVie IncNYSE:ABBV$226.22▲ $54.76(24.21%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$227.48Market Cap407.19BDay's Range$225.32 - $228.9552wk Range$159.42 - $244.81Volume5.46MP/E Ratio109.76Gross Margin6.45%Dividend Yield2.80%ExchangeNYSEThat’s the beauty of this dividend giant: AbbVie’s pipeline, with over 90 programs in development, funds growth without skimping on shareholder returns.What seals AbbVie’s reliability is its innovation track record. After Humira’s patent loss, new drugs captured 80% of that market share, driving 15% growth in non-Humira sales. In a sector prone to volatility, AbbVie’s diversified portfolio — spanning aesthetics to eye care — keeps cash steady. I’ve seen the stock rise fourfold since I bought in, but it’s the compounding dividends that thrill me most. Every quarter, without fail, it tops up my account, turning long-term patience into tangible wealth.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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5 Best High-Yielding ETFs to Own Right Now

2025-12-07 12:42:29

-->-->Key PointsNot only do ETFs offer a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.One of the best ways to generate a reliable income is by investing in dividend aristocrats because they’re among the most reliable dividend payers.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)-->-->With a great deal of uncertainty in the markets – a potential government shutdown, jobs numbers, inflationary risks – some of the best investments you can make are in safe, high-yielding exchange-traded funds (ETFs). Not only do ETFs offer a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.Look at the Vanguard Real Estate ETF  With an expense ratio of 0.13%, a yield of about 3.7%, and 154 holdings, including a great deal of real estate investment trusts (REITs), the Vanguard Real Estate ETF (NYSEARCA: VNQ) is a safe, long-term real estate opportunity.Loading stock data...Making it even more attractive is the recovery in commercial real estate. According to analysts at Deloitte, the CRE market is showing signs of recovery in 2025, with some predicting a generational opportunity, as noted in Deloitte’s 2025 Commercial Real Estate Outlook.Some of the ETF’s top holdings include Welltower, Prologis, American Tower Corp., Equinix, Digital Realty Trust, and Simon Property Group. Plus, it just paid a dividend of just over 87 cents on September 26. Before that, it paid a dividend of just over 86 cents per share on June 30.Since bottoming out at around $76 in April, the ETF last traded at $90.81. From here, we’d like to see it retest $95, which it tested in early December 2024.ProShares S&P 500 Dividend Aristocrats ETF One of the best ways to generate a reliable income is by investing in dividend aristocrats because they’re among the most reliable dividend payers.Not only have these stocks paid out dividends for more than 25 years, but they’re also some of the most reliable companies on the planet, even in the worst of times. According to ProShares.com, “NOBL invests in companies that typically exhibit stable earnings, solid fundamentals, and strong histories of profitability and growth.”While you could always buy a basket of aristocrats, you can instead pick up the ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL), which holds 69 of them and yields 2.54%. Its expense ratio is 0.35%.NOBL also paid out a dividend of just over 54 cents on September 30. Before that, it paid a dividend of just over 55 cents on July 1. Some of its top holdings include AbbVie, Lowe’s, Archer Daniels Midland, and Pentair.Since bottoming out at around $89 in April, the ETF hit a high of about $106. Now back to $102.56, we’d like to see it retest $106 again near term.Schwab US Dividend Equity ETF  There’s also the Schwab US Dividend Equity ETF (NYSEARCA: SCHD).With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend Index. It also yields 3.85%, and has holdings in Amgen, AbbVie, Home Depot, Cisco Systems, Broadcom, Chevron, UPS, and Coca-Cola, to name just a few. The ETF includes a total of 103 dividend stocks.The SCHD ETF just paid a dividend of just over 26 cents on September 29. Before that, it paid a dividend of just over 26 cents on June 30. Also, since bottoming out at around $23.75 in April, the ETF is now up to $27.11. From here, we’d like to see it initially retest $28.75.Invesco KBW Premium Yield Equity REIT ETF  With a yield of 8.82%, the Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: KBWY) invests at least 90% of its total assets in the securities of small and mid-cap equity REITs that trade in the U.S. and carry respectable yields. Some of its top holdings include Global Net Lease (GNL), Service Properties Trust (SVC), Global Medical REIT (GMRE), Gladstone Commercial (GOOD), EPR Properties (EPR), and Omega Healthcare (OHI), to name a few.The ETF just paid out a dividend of just over 12 cents on September 26. Before that, it paid out a dividend of just over 12 cents on August 22. Also, technically, after a brief pullback to $13.50, the ETF is now up to $15.81. From here, we’d like to see it test $19 a share.Global X Super Dividend U.S. ETF  With a yield of 7.32%, the Global X Super Dividend U.S. ETF (NYSEARCA: DIV) invests in 50 of the highest dividend-yielding stocks in the U.S. Some of those top holdings include Spire (SR), Kinder Morgan. (KMI), Omega Healthcare (OHI), Philip Morris (PM), Duke Energy (DUK), AT&T (T), and Dominion Energy (D), to name just a few. The DIV ETF just paid out a dividend of just over 10 cents on September 11. Before that, it paid out a dividend of just over 10 cents per share on August 12. Its next dividend will be paid on October 10. Technically, since bottoming out at around $15.80 in April, the DIV ETF rallied to $17.96. From here, we’d like to see the ETF rally to $20 a share, near term.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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Could This Be One of Jim Cramer’s New Favorite AI Stocks Right Now?

2025-12-07 12:42:29

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

2025-12-07 12:42:29

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

2025-12-07 12:42:29

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

2025-12-07 12:42:29

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

Tesla, GM, and Volkswagen Are in Trouble Now

2025-12-07 12:42:29

-->-->Key PointsDoug McIntyre and Lee Jackson discuss how the U.S. EV market surged in the third quarter of the year but now faces a sharp decline, with forecasts suggesting sales could fall by half in the coming months.They note that while Tesla still dominates with 46% market share, its lead has fallen dramatically as traditional automakers like Ford and GM have spent billions trying to catch up — yet continue to lose money on every electric vehicle sold.Both hosts argue that with high EV prices, falling demand, and rising electricity costs, companies such as Rivian and Lucid are unlikely to survive unless acquired by larger automakers, signaling a rough future for the EV sector.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)-->-->Video Playerhttps://videos.247wallst.com/247wallst.com/2025/10/EVs-In-Trouble.mp400:0000:0000:00Use Up/Down Arrow keys to increase or decrease volume.Now that the $7,500 EV tax credit has expired, many are wondering what this might mean in the world of electronic vehicles and EV stocks. There are specific concerns surrounding Tesla, whose market share has fallen dramatically, and consecutive bad quarters haven’t helped. In ar recent podcast, Doug McIntyre and Lee Jackson point out that as EV demand drops — from 8% of total car sales earlier in the year to a projected 4% — these companies will face even greater financial losses. The two also discuss Tesla, comparing its dominance on the EV market to that which General Motors once had in the 1960s. As was the case with GM, more competitors got into the market over time and continuously chipped away at what once seemed like an insurmountable lead. With EV prices still high and the demand for such vehicles dropping thanks in part to high electricity costs, it appears the only way for some companies to survive is to be acquired by larger automakers.Doug McIntyre:So Lee, what’s happened now is, is that the, the EV $7,500 tax credit disappeared a few days ago—Lee Jackson:Uh-oh.Doug McIntyre:And this is what the year looked like for EV manufacturers. Crummy first quarter, crummy second quarter, probably huge crummy July or something. Then all of a sudden a hockey stick. So the year was about a million EVs totally sold in the United States, but about 440,000 of those were in the third quarter. So this is, here’s, here’s where you end up. Tesla 46% and that used to be 80% for people who don’t remember. GM 13% Ford, little over 6% Hyundai. 6%. Now that tells me several things. The first one is, is that how badly Tesla’s been bloodied. They may still be the only guys making money in EVs, but when you’ve seen your market share over what is really only a few years, we’re not talking decades.Lee Jackson:No. You could use a decade as as maybe the benchmark. Yeah.Doug McIntyre:That still reminds me in the sixties, General Motors had a 50% market share in the United States. All cars sold. It’s now 17%. Over time competitors got into the market, they chipped away, chipped away, chipped away. And now you know, GM has less than a quarter of the market share. So, this is a Tesla story, but it’s also a story about the fact that some of these legacy car companies have started to buy their way into this car, this EV business. Now this is buying your way in. Ford’s lost. Say they invested $30 billion in EVs, lose another 5 billion this year, starting a new assembly line to build EVs. It’s gonna cost them $2 billion. So what did they get for this? They got a market share of about six and a half percent and still lose money on every EV they sell. Gee whiz. I spent 30, $40 billion and I got, now here’s the other great thing. You now have six and a half percent of an EV market that’s almost gonna drop in half. Now, because the estimate from IC cars is, is that 8% of the new cars bought in the United States and the first half of this year were EVs. Their forecast is is in the fourth quarter into next year, it’ll be 4%. You’re talking, you’re talking about EV sales basically dropping by half, so, if the ratio and proportion of the ownership of this market stays the same, uh, GM’s gonna have 13% of a market that’s half the size it was in the third quarter, and Ford’s gonna have 6.5%. You know what that means? It just means that they’re going back to losing so much money that there isn’t this much money in the world, you know?Lee Jackson:You where you wouldn’t think so. You wouldn’t think so. And it’s interesting because your favorite CEO Jim Farley said over the weekend that Americans don’t want $75,000 EVs. That’s quite, that’s quite obvious if, if you wanna state the obvious. But he’s right. You know? And the only buzz that you hear really coming from anybody like Tesla is that Oh, yeah, I mean the, the 25,000 car is on the way. It’s on the way. It’s like, okay, you’ve said that for three or four years, but you’ll still keep looking. But I thought what, what Farley said was good. ’cause that basically that says lucid, you’re dead. You know, anybody with the expensive cars is toast is absolutely toast. There’s nobody gonna pay it.Doug McIntyre:I don’t want to give Mr. Farley too hard a time, but you buy an F-150 Lightning, their, their full-size pickup EV. That thing starts out around 60 K, but you throw anything on it, you put in the less of leather seats. So, so anyway, now they do say that they will have themselves a sub 30,000 EV, but not until 2027.Lee Jackson:Right. And you know what the, the most bizarre dichotomy that’s that’s coming to face drivers and people in the future is that gasoline prices are going down because production, especially at OPEC Plus, is going up. But electricity processes are going up because, you know, AI and data center use and all that is driving things crazy. You’re gonna end up with the electricity being more expensive than owning, which was the whole pitch. Well, this is gonna be, I know, gas car, you know, and you’re saving the world.Doug McIntyre:Those lines may not cross, but December of last year, the United States produced more crude oil than any country in any month in history ever. So isn’t just OPEC plus the world is a wash in oil, and this idea that we’re looking at peak oil in like four or five years, forget it. Peak oil is no way, no way. 20, 30 years out.Lee Jackson:The production increases, but it’s still is, oil is everywhere.Doug McIntyre:Well. There, there are two parts to this, but the, to me, the most important thing of all is if you’re an investor in any car company that’s selling EVs in the United States, you’ve gotta ask yourself the question and that, and that is “What happens when the EV market share goes in half when it comes to the purchase of new car?” And I would say the answer to that is if you’re in that business, nothing good. And let’s just tag this on for people so that they have it. Rivian and Lucid are toast.Lee Jackson:They’re, they’re absolutely toast. They won’t make, if you can short ’em, I don’t even think they’ll make it two more years.Doug McIntyre:If you’ve got some guts, short ’em.Lee Jackson:Well, that would take guts, but I think unless, unless somebody, unless somebody like a Mercedes-Benz or a Volkswagen or somebody like that would want to buy them and incorporate them into their universe, maybe they survive. But other than that…Doug McIntyre:Their valuations are too high. They’re still in the billions of dollars.Lee Jackson:I know, I know, I know. Well, so I guess we’re gonna have to see what happens and we’ll return to this after the fourth quarter numbers come out and just see how they are in comparison to the blockbuster third quarter for everybody.Doug McIntyre:Yes, indeed.Get Ready To Retire (Sponsored)Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.Here’s how it works:1. Answer SmartAsset advisor match quiz2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future.

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Investing

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

2025-12-07 12:42:29

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?

2025-12-07 12:42:29

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?

2025-12-07 12:42:29

-->-->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? 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