Two dividend-paying video game stocks to purchase despite high inflation, risk of recession and Russia’s unrelenting war in Ukraine offer the stability of income payouts and a chance for growth during the next year with a pair of leaders in that popular product category.

With the Fed already having raised interest rates 0.75% in June, July and mid-September and warned of further hikes to curb an increase in the Consumer Price Index of 8.3% during the last 12 months, BofA Global Research is forecasting a 2023 recession scenario with video game sales falling 4-6%. For that reason, investors would be wise to buy income-paying video game stocks that should capitalize on the obstacles, flashing lights and dramatic sound effects that entice users to play their favorites repeatedly while tightening their budgets in other ways.

BofA wrote in a recent research note that it prefers personal computer (PC) and console video game exposure than mobile-oriented investments. Key advantages for the favored PC category in a recession stem from monetization of hardcore gamers, primary entertainment, immersive and social game playing, while facing lower user acquisition risks than mobile competitors, BofA wrote.

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Two Dividend-paying Video Game Stocks to Purchase Lifted Aided by Loyal Users

“Interactive entertainment, including video games, are inexpensive and a form of entertainment that consumers are likely to continue using in a declining economy as they reduce spending in other areas,” said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. “But not all video game companies will do well. The company must continue offering innovative, new and compelling content that engages players.”

Bob Carlson, head of the Retirement Watch newsletter, meets with Paul Dykewicz.

Electronic Arts (NASDAQ: EA), a video game company headquartered in Redwood City, California, is a good choice for investors because more than half of its revenue comes from sports games, Carlson counseled. The company has a strong customer base, and its revenues and earnings likely will be consistent regardless of what happens in the economy, he added.

The company also is the “top pick” in a recession among video game stocks covered by BofA. The investment firm set a price objective on the stock of Electronic Arts at $155 a share and described the company’s franchises as the “consumer staples” of the video game industry due to  its hardcore gamer communities and dominant brands.

The top titles offered by Electronic Arts include FIFA, Apex Legends, Madden NFL, F1, PGA Tour, Battlefield Mobile and others that should be resistant to a recession as gamers are more likely to pull back on obscure, new-to-market titles than their longtime favorites, BofA wrote. Mix shift into Live Services (estimated at 75% of fiscal year 2024 sales) and lower exposure to Casual mobile (11% of fiscal year 2024 sales) also strengthen the case for the company as BofA’s top pick among video game stocks during a recession.

Chart Courtesy of www.stockcharts.com

Value investors may like that Electronic Arts currently trades below BofA’s index of 18 PC/Console game publishers on a price-to-earnings (P/E) basis. Risks to the stock include a loss of key personnel, deterioration of gamer budgets in a return-to-work environment, rising personnel costs that are not offset by price increases and production delays, wrote Omar Dessouky, CFA, BofA’s video game research analyst.

Skousen has Recommended EA Profitably as One of Two Dividend-paying Video Game Stocks to Purchase

Mark Skousen, leader of the Forecasts & Strategies investment newsletter, recommended Electronic Arts profitably during 2021 in his TNT Trader service. He also turned a profit in video game company Zynga in 2020 for subscribers of his monthly newsletter.

Skousen currently is not invested in any video game stops but part of the reason is due to the continued Fed interest rate hikes that are slowing the economy. Plus, the money supply has shrunk from growth of 40% in 2020-21 to under 6% in 2022.

Mark Skousen, a descendant of Ben Franklin and head of Forecasts & Strategies, meets with Paul Dykewicz.

Microsoft Makes Move into Two Dividend-paying Video Game Stocks to Purchase 

Microsoft Corp. (NASDAQ: MSFT), a Redwood, Washington-base global software giant, is a “must-own,” dividend-paying stock for investors due to its financial profile, position to gain even more market share across a number of vertical markets, and the resiliency of demand for its major products that have become essential across all enterprises, according to Chicago-based investment firm William Blair & Company, L.L.C. Microsoft, with a goal to enable digital transformation for the era of an intelligent cloud and an intelligent edge, announced on Sept. 20 that its board of directors declared a quarterly dividend of $0.68 per share, up 6 cents, or 10%, from the prior quarter’s payout.

The increased Microsoft dividend is payable Dec. 8, 2022, to shareholders of record on Nov. 17, 2022. The company’s dividend yield currently is 1.2% and its ex-dividend date will be Nov. 16, 2022. Investors interested in receiving the next dividend payout would need to purchase the stock before the market’s close on Wednesday, Nov. 16.

Microsoft has become a leader in video game consoles in recent years with the Xbox, Xbox 360, the Xbox One and the Xbox Series X. In addition, Microsoft acquired video game holding company Activision Blizzard for $68.7 billion in cash on January 18, 2022. The purchase became the biggest in Microsoft’s history and moved the company into third place in annual video game revenues.

Chart Courtesy of www.stockcharts.com

Two Dividend-paying Video Game Stocks to Purchase Highlight Acquisition-Fueled Microsoft

Microsoft’s results for its fourth quarter ended June 30, 2022, came in below consensus by $519 million for revenues, equaling 16% constant-currency year-over-year growth, and $0.06 short for earnings, equating to 8% constant-currency year-over-year growth. While Microsoft management had updated its guidance in June 20222 due to unfavorable foreign exchange (FX) headwinds, the impact was greater than expected — causing a $595 million reduction in revenue and $0.04 on earnings per share (EPS).

Plus, Microsoft was hurt by a $126 million operating income drag after scaling down its operations in Russia, following President Vladimir Putin’s ordering its military’s Feb. 24 attack of Ukraine, and another $113 million in additional expenses in the quarter from the company’s reorganization of business groups. Finally, Microsoft absorbed $300-plus million in negative impact to its Windows OEM revenue as a result of lockdown-related production shutdowns in China.

Its management expects cost of goods sold (COGS) rise 13.5% at the midpoint in the fiscal first quarter ended Sept. 30, and for operating expenses to grow 19.5% at the midpoint. As Microsoft moves through fiscal 2023, management noted that operating expense growth should start to materially decelerate — allowing operating margins to stay stable at roughly 42% for the year. In addition, management noted a change to its useful life accounting, cutting depreciation costs on its data center footprint and roughly canceling out FX headwinds for the full fiscal year.

Non-Dividend-paying AppLovin Omitted from Two Dividend-paying Video Game Stocks to Purchase 

The lack of a dividend kept AppLovin (NASDAQ: APP), a mobile technology company in Palo Alto, California, from joining Electronic Arts and Microsoft as income-paying video game stocks to purchase. Nonetheless, BofA gave AppLovin a $43 a share price objective, with the company’s software segment assigned a value of $41 a share and its gaming segment, including both in-game advertising and in-game consumer spending, equaling $2 a share.

The stock’s chance to outperform expectations would be aided by a new dovish U.S. central bank monetary policy and regulation that would reduce Apple’s (NASDAQ: AAPL) or Google’s (NASDAQ: GOOGL) control over their own mobile ecosystems, BofA wrote. Risks to attaining BofA’s projected price objective for APP include a recession and a tightening of financial conditions brought about by the Fed.

The investment firm predicted that mobile platform policies of Google and Apple would debase broker ad networks’ value proposition. Plus, a “major resurgence” of Facebook, owned by Meta Platforms Inc. (NASDAQ: META), on iOS would hurt AppLovin’s stock price, BofA wrote.

Chart Courtesy of www.stockcharts.com

“Although mobile gaming is our least favorite video game vertical in a recession, we view Mobile Ad Networks as relatively advantaged in the overall mobile ecosystem due to their superior market position and pricing power,” BoA wrote.

Reasons the impact of a recession could be lessened include:

  • Some pricing power could offset declines in ad volumes
  • Spread-taking business model and enterprise-driven spending
  • Ramp-up of new business lines and rationalization of casual gaming business could counter recession-induced revenue declines

Robolox Warrants Watching Despite Absence from Two Dividend-paying Video Game Stocks to Purchase 

Robolox (NASDAQ: RBLX), a video game developer in San Mateo, California, received a buy rating and a $54 price objective from BofA Global Research. The company is poised to benefit from secular growth catalysts that should counter a recession, the investment firm wrote.

The company offers innovative technology, such as real-time facial animation, and new business lines that feature immersive advertising. The spending habits of its core U.S. and Canadian customers in the age 9-12 cohort should show resilience in an economic downturn, if past recession-period data provides any guide, BofA wrote.

Robolox’s increasingly important social function, similar to META and TikTok, also differentiates it from video games and makes it compelling for some players, BofA reported. Risks to achieve BofA’s price target may arise from not developing high production value content to appeal to a broader demographic, and an inability to continually improve the developer value proposition and stagnating the developer base.

Robolox’s platform attracts younger users, with children under the age of 13 making up roughly 50% of its daily consumers. The company’s skew toward younger players could make it more recession-resistant, BofA wrote.

Chart Courtesy of www.stockcharts.com

Two Dividend-paying Video Game Stocks to Purchase Two-Step Past Take-Two Interactive

Take-Two Interactive Software Inc. (NASDAQ: TTWO) is a New York-based video game holding company that earned a $130 price objective from BoA. The company boasts “world-renown titles” such as Grand Theft Auto, NBA 2K and Red Dead Redemption.

In addition, Take-Two Interactive’s PC/console franchise is among the best in the industry, BofA wrote. Yet, underperformance of the mobile segment could lead to downside surprises in a recession, with the success of Zynga integration an added unknown. A largely undisclosed slate ramped into a 2023 recession and a potential delay in GTA VI release contribute to an uncertain outlook that caused the investment firm to rank it neutral.

However, investors willing to take the long view may like potential catalysts for the stock. They include an announcement about Grand Theft Auto VI sooner than later, a potential acquisition by a strategic buyer and better-than-expected performance of mobile games acquired through its Zynga transaction. Risks include a severe recession causing reduced consumer expenditures on TTWO’s games, delays in game development of a major title, such as GTA 6, and continued underperformance of mobile games.

Chart Courtesy of www.stockcharts.com

Connell Talks about Take-Two Interactive as Non-Dividend-paying Choice for Patient Investors

Investors willing to speculate on Take-Two Interactive with its share price down could produce a reasonable return, if given time, due to its roughly two dozen significant games in development that are scheduled for release between now and fiscal 2025, said, Carlson, who heads Retirement Watch. A few “big hits” in the group or many solid products could “boost” the company’s revenue and earnings, he added.

Another fan of Take-Two Interactive at its reduced current valuation is Michelle Connell, of Dallas-based Portia Capital Management, who called it a “a forward-looking pick.”

Michelle Connell, CEO, Dallas-based Portia Capital Management

Take-Two Interactive’s share price has been “weak” since the company announced plans in January to buy Zyngna in a $13 billion acquisition of a mobile gaming leader, Connell said. The stock is down about 39% so far this year, compared to just above 31% for NASDAQ.

“Potential cost synergies from the acquisition are estimated to be $100 million,” Connell counseled. But the savings still need to be achieved.

The video game sector is viewed as a defensive investment play during recessions or periods of economic uncertainty. Connell continued. A $60 investment for a video game can go a long way in providing entertainment for many days, she added.

Concerns about the stock grew when the company missed revenue estimates during the past quarter but there is much to look forward to in the future, Connell opined. Since June 30, 2022, TTWO has had its 12-month sales estimates increased the most of any company within the S&P 500 — a boost of 66%, she added.

Its 12-month earnings per share estimates have risen 10%, Connell continued. The stock’s average price estimate is $160, up 50% from current levels, she added.

Rising U.K. COVID-19 Cases Do Not Imperil Two Dividend-paying Video Game Stocks to Purchase  

COVID-19 cases and deaths affect supply and demand for video game products and many others. Smart investors monitor COVID-19 outbreaks and lockdowns that cause supply chain problems. Signs that the United Kingdom may face a wave of COVID-19 cases caused experts to warn  the United States could follow. Even though a recent rise in COVID-19 cases in England does not seem due to a new coronavirus variant thus far, several new strains are surfacing in the United States and elsewhere.

But Canada announced on Sept. 26 that it would remove all remaining Covid-19 entry restrictions, such as testing, quarantine and isolation requirements. That could aid trade and tourism between that country and the United States, among others.

Resistance to China’s strict zero-tolerance COVID policy occurred recently as a rare protest occurred in its technology hub of Shenzhen, social media video showed. Dissent came after government officials ordered a sudden lockdown due to 10 new infections on Sept. 27 in the city of more than 18 million people.

China has locked down more than 70 cities fully or partially to preserve its zero-tolerance policy of COVID. Plus, 27 people were killed and 20 more were injured when a quarantine bus overturned on a mountain road Sunday night, Sept. 20.

U.S. COVID-19 deaths totaled 1,059,291, as of Sept. 30, according to Johns Hopkins University. Cases in the United States climbed to 96,347,399. America has the dreaded distinction as the nation with the most COVID-19 deaths and cases.

Worldwide COVID-19 deaths rose to 6,545,161, as of Sept. 30, according to Johns Hopkins. Global COVID-19 cases reached 617,405,553.

Roughly 79.5% of the U.S. population, or 264,112,767, have received at least one dose of a COVID-19 vaccine, as of Sept. 28, the CDC reported. Fully vaccinated people total 225,284,115, or 67.9%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to nearly 110.0 million people.

Two Dividend-paying Video Game Stocks to Purchase Appear Alluring

The two dividend-paying video game stocks to purchase appear alluring amid the market’s 2022 drop. Those two dividend-paying video game stocks to purchase seem strong enough to withstand headwinds of high inflation, risk of a recession after 0.75% rate hikes by the Fed in June, July and September, as well as Russia’s  war in Ukraine that led to its audacious Sept. 30 claim of annexing regions of its neighboring country that its troops have been occupying in Putin’s so-called “special military operation” that the United Nations declared violates international law.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Three beauty investments to purchase for income offer strong potential to outperform the market even though Russia’s President Vladimir Putin announced plans to call up 300,000 civilians to go to serve in the country’s military to replenish its attack against Ukraine that began Feb. 24.

The three beauty investments to purchase for income offer hope for those who desire a chance to grow their money to avoid succumbing to inflation, a recession and continuing fallout of Russia’s invasion. All three beauty investments to purchase for income allow people to invest in companies that traditionally remain important to their customers who want to present themselves attractively, even when negative circumstances disrupt their lives.

Further, these three beauty investments to purchase for income give users of such products and services enhanced self-esteem and an escape from turbulent times. In troubling times, such satisfying results can spur sales.

“Beauty products are among the consumer staples that tend to do well through recessions and inflation,” said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. “Their customers tend to buy the products except in the worst times.”

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Three Beauty Investments to Purchase for Income as Putin Orders 300,000 Civilian into War

Russia’s President Putin announced that he would ask roughly 300,000 military reservists to join the war in Ukraine that he prefers to describe as a “special military operation.” Those called up include many reserve officers, including some over the age of 60, who had retired from service.

In addition, Russia’s government announced it will hold four referendums in parts of Ukraine that are currently under Russia’s control, even though such action violates international law, according to the United Nations.

Despite the evils of war that has killed tens of thousands of people in Ukraine, beauty and personal care grew 7% year over year (y/y) in 2021. As consumers exited the pandemic, the beauty and personal care category was ready for accelerated growth globally as consumers bought high-quality, premium products and found more occasions to use fragrance and makeup, while prioritizing self-care and placing a high value on clean beauty, BofA reported.

Beauty products companies have been giving positive earnings reports and outlooks, while the management of many other companies have shared “pessimistic” forecasts, Carlson counseled. Beauty products stocks are included in a diversified consumer staples portfolio, with such stocks able to hold up well in recessions and inflation due to their pricing power for coveted products.

Bob Carlson, head of the Retirement Watch newsletter, meets with Paul Dykewicz.

ETF Is One of Three Beauty Investments to Purchase for Income

A good way to establish a diversified consumer staples portfolio is through an exchange-traded fund (ETF), Carlson counseled. He suggested iShares U.S. Consumer Staples ETF (IYK).

The ETF’s 52 stocks are led by Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), CVS Health (NYSE: CVS), and Mondelez International (NASDAQ: MDLZ). About 64% of the fund is in its 10 largest positions. It has slid lately and may be poised for a strong recovery when the market turns up.

Chart courtesy of www.stockcharts.com

Procter & Gamble Picked as One of the Three Beauty Investments to Purchase for Income

Jim Woods, who heads the Intelligence Report investment newsletter, has an Income Multipliers portfolio in that publication that includes Procter & Gamble, a Cincinnati, Ohio-based company with diversified consumer products that include many focused on beauty, grooming and cleanliness. Plus, Procter & Gamble offers strong cash flow that allows it to provide its shareholders an alluring dividend yield of 2.7% compared to the paltry payouts of many others.

Paul Dykewicz meets with stock picker Jim Woods, head of the Intelligence Report newsletter, as well as co-leader of Fast Money Alert.

In addition, Procter & Gamble has a rising dividend policy. In fact, the company has boosted its dividend annually for the past 66 years. Procter & Gamble, founded in 1837, features 22 brands that generate at least $1 billion in sales.

Chart courtesy of www.stockcharts.com

Investing Involves Managing Risks

Potential risks to Procter & Gamble include inflation weighing on its profit margins, weakened sales from emerging markets in China and the effects of a strong U.S. dollar, said Michelle Connell, president and owner of Dallas-based Portia Capital Management.

Another risk is that consumers may use private-label and generic products more than those of Procter & Gamble, Connell continued. Even though the stock is down so far this year, it has a potential to ascend, she added.

“I think PG would be good here,” Connell continued, especially due to its “reasonably priced” cosmetics, beauty and grooming products.

Former portfolio manager Michelle Connell, CEO, Portia Capital Management

“I don’t like being early on stocks when they have disappointed so much,” Connell advised.

Procter & Gamble has a very strong and diversified consumer product portfolio, while trading at a bit of a discount after dropping 14% since the start of 2022. However, Connell projects that PG has an upside of 20%.

Giant Retailer Walmart Is Another of the Three Beauty Investments to Purchase for Income

Walmart Inc., a superstore chain headquartered in Bentonville, Arkansas, has slumped since mid-May but now is showing some resiliency amid the market pullback in recent months. Investors seeking to buy Walmart at a discount should take into account the stock is down since the start of the year but has been climbing since mid-May.

Walmart is one of the few stores that’s likely to benefit from rising inflation, as the store offers the best discounts of any major retailer,” said Jim Woods, leader of the Intelligence Report newsletter, plus the High Velocity Options and Bullseye Stock Trader advisory services.

Woods told me he recommends Walmart in the Income Multipliers portfolio of his Intelligence Report newsletter due to its history of raising annual dividends and its five-year total return of more than 71%.

Chart courtesy of www.stockcharts.com

U.S. COVID Cases Exceed 96 Million

COVID-19 cases and deaths can significantly impact supply and demand for beauty products and many others. Investors who monitor COVID-19 outbreaks and lockdowns position themselves to foresee supply chain problems.

In the wake of China locking down more than 70 cities fully or partially to preserve its COVID-19 zero-tolerance policy, 27 people were killed and 20 more were injured when a quarantine bus overturned on a mountain road last Sunday. China reported 918 new COVID-19 infections for Sept. 23, including 188 symptomatic and 730 asymptomatic, according to the country’s National Health Commission. It marked an increase from a day earlier on Sept. 22, when 901 new cases were reported, including 175 symptomatic and 726 asymptomatic infections.

U.S. COVID-19 deaths rose for the eighth consecutive week by 3,000 or more, jumping to 1,056,373, as of Sept. 23, according to Johns Hopkins University. Cases in the United States climbed to 96,056,075. America remains the nation with the most COVID-19 deaths and cases.

Worldwide COVID-19 deaths totaled 6,535,438, as of Sept. 23, according to Johns Hopkins. Global COVID-19 faded to a gain of less than 3.4 million for the second straight week, down from almost 4 million three weeks ago. The new worldwide case total reached 614,512,193.

Roughly 79.5% of the U.S. population, or 263,812,108, have received at least one dose of a COVID-19 vaccine, as of Sept. 21, the CDC reported. Fully vaccinated people total 224,980,931, or 67.8%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 109.6 million people.

The three beauty investments to purchase for income appear primed to shine. Despite high inflation, the risk of recession fallout after 0.75% rate hikes by the Fed in June, July and earlier this week, as well as other potential hikes ahead, the three beauty investments to purchase for income pay dividends and offer the allure of share price gains.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Six dividend-paying natural gas investments to purchase offer enhanced opportunity due to Russia recently cutting supplies to Europe as winter weather nears.

The six-dividend-paying natural gas investments to buy may benefit from price hikes if the Nord Stream 1 pipeline that transports Russian gas to Germany trims production further than already imposed. A complete stop to Nord Stream 1 would leave Germany especially vulnerable if energy protectionism snowballs, potentially causing gas inventories to struggle to hit 2021 highs and storage to fall “perilously low” by season’s end, according to BofA Global Research.

Russia’s Gazprom claimed that part of its reason for cutting supply of natural gas to Europe stems from “extended maintenance” of the Nord Stream 1 pipeline. Deep cuts to Europe’s flow of natural gas from Russia are occurring as the country’s attack of neighboring Ukraine extends past six months and has been met by a successful counteroffensive in the past week.

A “laundry list of issues” that Russia has given as reasons not to keep flowing natural gas to Europe included “inadequate paperwork” for the recently maintained Nord Stream 1 gas turbine, BofA reported. As uncertainty grows about as a supplier grows, Europe’s natural gas spot and forward prices are settling into a higher range, the investment firm reported.

Chart courtesy of Stock Rover.  Learn more about Stock Rover

Six Dividend-paying Natural Gas Investments to Purchase Provide Inflation Protection

Despite Russia’s supply cuts, storage of natural gas in Europe has been built back to a five-year average, according to BofA. Key reasons for preventing a collapse in natural gas supply include high year-over-year exports of the energy source from Norway, strong U.K. output and a significant jump in liquefied natural gas (LNG) imports from nations other than Russia, BofA added.

LNG, created by cooling natural gas and reducing its volume to make it easier, safer and more efficient to ship around the world, has endured price hikes that have caused consumption to drop 12% year over year, BofA wrote in a recent research note.

Natural gas investments offer protection against inflation and the Fed’s interest rate hikes, since such companies hold pricing power for goods and services customers need to heat their homes, places of work, houses of worship or other buildings. The buyers of essential products and services may accept a small or even larger increase in price.

Russia’s Export Cuts Fortify Six Dividend-paying Natural Gas Investments to Purchase

Russia cut its export of gas from the pipeline to 40% of capacity in June and to 20% in July, while shutting off supply to European nations such as Bulgaria, Denmark, Finland, the Netherlands and Poland. The supply squeeze also applied to other nations in apparent retaliation for opposing Russia’s Feb. 24 invasion of Ukraine.

Gazprom has scaled back its flows via other pipelines since Russia attacked its neighboring nation in what the country’s President Vladimir Putin described as a “special military operation.” However, military action against a sovereign country like Ukraine violates international law, under Article 2 (4) of the United Nations Charter.

Pre-war Russia Supplied about 40% of Europe’s Natural Gas

Pre-war Russia supplied about 40% of Europe’s natural gas, mostly by pipeline. Deliveries in 2021 totaled around 155 billion cubic metres (bcm).

Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter, said recently added Cohen & Steers MLP & Energy Opportunity Fund (MLOAX) to all of his portfolios.

“Natural gas should continue to be a good investment, as long as Europe is looking for ways to reduce dependence on Russia,” Carlson told me. “In addition, the natural gas drillers in the U.S. are focused on increasing cash flow and earnings. They’re not inclined to maximize drilling expenses in the short run to increase output.”

Bob Carlson, head of Retirement Watch, meets with Paul Dykewicz.

Six Dividend-paying Natural Gas Investments to Purchase Present Profitable Plays

Good investment opportunities can be found with companies that provide the pipelines, storage facilities and other infrastructure needed to supply the world with natural gas and other energy sources, Carlson continued.

“One of the attractive qualities of these investments is that their revenues are independent of the prices of the commodities,” Carlson counseled. “The firms charge fees for their services, and the fees often are adjusted for inflation. Their revenues and earnings depend on the volume of commodities passing through their facilities, not the price of the commodity.”

The total returns of “leading” energy service companies are fueled by current income and price appreciation, using investments in energy-related master limited partnerships (MLPs) and securities of industry companies, Carlson said. Those businesses are expected to derive at least 50% of their revenues or operating income from exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, crude oil and other energy resources.

Chart courtesy of www.stockcharts.com 

The Cohen & Steers MLP & Energy Opportunity Fund recently held 49 positions and had 53% of the fund in the 10 largest positions. Top holdings of the fund featured Enbridge (NYSE: ENB), Cheniere Energy (NYSEAMERICAN: LNG), Williams Companies (NYSE: WMB), Energy Transfer (NYSE: ET) and Pembina Pipeline Corp. (NYSE: PBA).

Six Dividend-paying Natural Gas Investments to Purchase Feature MLP

Bryan Perry, who leads the Cash Machine investment newsletter, proposes investing in energy through the Alerian MLP Exchange Traded Fund (NYSE: AMLP). That fund seeks investment results that correspond generally to the price and yield performance of the Alerian MLP Infrastructure Index. The index is a capped, float-adjusted, capitalization-weighted composite of energy infrastructure Master Limited Partnerships (MLPs) that earn most of their cash flow from midstream activities such as the transportation, storage and processing of energy commodities.

Paul Dykewicz interviews Bryan Perry, head of the Cash Machine investment newsletter.

The United States is the world’s largest producer of oil and gas, with MLPs providing exposure to long-lived assets that generate inflation-protected cash flows. Plus, MLPs have low correlations to other yield-oriented investment such as bond and utilities.

Dividend lovers will appreciate that Alerian MLP ETF offers a current dividend yield of 7.5% and paid $2.94 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Aug. 11, 2022.

The MLP does not require investors to contend with a notoriously troublesome K-1 document at tax preparation time. The lack of a daunting K-1 to navigate adds appeal to this ETF.

Chart courtesy of www.stockcharts.com 

Six Dividend-paying Natural Gas Investments to Purchase Include Exxon Mobil

Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM) zoomed during its time as a recommendation in the Cash Machine investment newsletter between July 2021 and May 17, 2022, providing income-oriented investors with exposure to liquefied natural gas (LNG), oil refining and strong returns. The company ranks as the world’s second-largest supplier of natural gas and its share price soared about 55% since its addition to the newsletter’s Safe Haven Portfolio.

Perry, who leads the Cash Machine investment newsletter, focuses on high-income investments. For that reason, Perry wrote that he recommended the stock’s sale when the company’s dividend yield slipped beneath his 4% minimum.

With tight energy supply, Perry predicted XOM’s share price would stay well supported by investors seeking an alternative to the sagging stock market of 2022, even if Exxon Mobil no longer fit his requirement for a high-yield dividend stock. The company is one of the largest producers of oil and natural gas worldwide.

Chart courtesy of www.stockcharts.com 

Six Dividend-paying Natural Gas Investments to Purchase Rise Amid Shrinking Supply

In 2021, Exxon Mobil, the world’s largest refiner, produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day. By the end of 2021, its reserves reached 18.5 billion barrels of oil equivalent, 66% of which were liquids. The company’s global refining capacity totals 4.6 million barrels of oil per day and ranks as one of the biggest manufacturers of commodity and specialty chemicals.

Oil prices have soared due to a combination of robust demand and constricted supply caused in large part by Russia’s invasion of Ukraine, according to the Fast Money Alert advisory service co-led by Mark Skousen and Jim Woods. They wrote that the “smart money” is betting on higher energy prices. Even smarter, faster money is investing in XOM, they added.

Skousen, editor of the Forecasts & Strategies investment newsletter, recently wrote to his subscribers that he is recommending two stocks that are positioned to ride the wave of investor interest in natural gas. One is Enterprise Products Partners (NYSE: EPD), with a return of 28.9% so far in 2022.

EPD Excels as One of Six Dividend-paying Natural Gas Investments to Purchase

EPD has benefited substantially from increased demand for natural gas and is amassing liquid natural gas (LNG) from processing natural gas at its facilities. The partnership has 19,079 miles of natural gas pipelines and 19 processing facilities, storage and related LNG marketing activities.

Enterprise Products Partners is one of the largest publicly traded partnerships and a key North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. In addition, the company’s services include natural gas gathering, treating, processing, transportation and storage.

The company further provides NGL transportation, fractionation, storage and import and export terminals. It also offers crude oil gathering, transportation, storage and terminals, along with petrochemical and refined products transportation, storage and terminals, as well as a marine transportation business.

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I personally bought shares of Enterprise Products Partners shortly after the 2020 stock market crash to profit from what I viewed as an inevitable recovery. The surge in oil and natural gas prices since then has rewarded me nicely and the stock still is ascending.

Cheniere Energy Is One of Six Dividend-paying Natural Gas Investments to Purchase

Another way to profit from the growing demand for LNG is to invest in energy companies that export liquid natural gas. One of them is Cheniere Energy (NYSE American: LNG). Based in Houston, Texas, Cheniere Energy is the largest liquefied natural gas exporter in the United States.

Business is booming. Revenues zoomed 165% in the past year to $8.1 billion, and second-quarter earnings per share hit $2.90, compared to only 54 cents a year earlier.

Guidance is strongly positive — there is surging demand from European customers looking to replace Russian gas. The company recently has signed long-term contracts to deliver some 140 million tons of liquid natural gas through 2050.

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Starting in November 2021, Cheniere Energy began to pay a modest dividend of 33 cents per share. To further enhance shareholder value, Cheniere Energy also has repurchased 4.1 million shares worth $540 million in the most recent quarter.

Mark Skousen, a descendant of Ben Franklin, meets with Paul Dykewicz.

EOG Resources Stands with Six Dividend-paying Natural Gas Investments to Purchase

The U.S. LNG inventory remains below its five-year average for this time of year by double-digit percentages, said Michelle Connell, CFA, president and owner of Portia Capital Management, of Dallas, Texas. A key issue for the U.S. LNG industry is that production of the commodity has never been profitable on its own, but it is as a byproduct of oil production, she added.

“There isn’t enough oil being produced,” Connell said. “Currently, only 11.6 million barrels/day are being produced. Pre-pandemic, we produced 13 million barrels/day.”

Instead of investing to expand capacity, oil companies have focused on boosting their dividends, Connell continued. If they pivot, these companies face a backlash from investors who could sell their shares and crush the market value of these companies, Connell added.

Former portfolio manager Michelle Connell, CEO, Portia Capital Management

EOG Resources Joins Six Dividend-paying Natural Gas Investments to Purchase

LNG companies cannot boost production quickly, Connell cautioned. Oil companies need a minimum of six to eight months to increase their oil and LNG output, Connell added.

Production of oil via shale recently created the largest share of America’s natural gas reserves, Connell continued. Unfortunately for proponents of increasing output to meet rising demand, shale production has “decreased exponentially” since the pandemic began and the buildup of LNG reserves has slid, Connell counseled.

However, Houston-based EOG Resources Inc. (NYSE: EOG) is producing substantial amounts of oil via shale, and LNG. Its Chief Executive Officer Ezra Yacob called the company’s recent financial results “outstanding” and said 2021 was a “tremendous year” for EOG with record earnings, record free cash flow and return of cash that places it near industry leaders.

Income investors will appreciate that the company’s long-standing focus on free cash flow led to payment of another $1.00 per share special dividend while also strengthening its balance sheet.

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Connell’s reasoning for favoring EOG includes:

-Wall Street investment firms such as Wells Fargo and Raymond James raised future earnings estimates and target prices on EOG, despite strong performance so far in 2022;

-Based on its fundamentals and increased energy demand, the 12-month estimated upside has jumped from 25% to 35%;

-The company is on a roll with a gain of 14% in the past month, 45% so far in 2022 and 97% in the past 12 months.

Connell raised a concern about whether EOG is too generous with its dividend payouts that equal 27% of profits. She wondered aloud whether it is leaving enough cash for reinvestment.

Ukraine’s Counteroffensive Raises Questions about Next Moves

Ukraine launched a potent counterattack last weekend that reportedly allowed it to take back more than 2,317 sq. miles, or 6,000 sq. km., from Russia’s control. In the Kharkiv region, the towns of Izyum and Kupiansk were regained by Ukraine last Saturday after that they previously had been seized by Russia and used as key hubs to supply invading forces in the Donbas region.

Even though Russia still holds about one-fifth of Ukraine’s territory, the counterattack is showing that the defenders of freedom are gaining ground. Whether those lands can be retained or even enlarged will be critical to the ultimate outcome.

Inflation Affects Energy Pricing Substantially

Another big uncertainty is inflation. The U.S. Consumer Price Index for All Urban Consumers rose 0.1% in August, on a seasonally adjusted basis, after no change in July, the U.S. Bureau of Labor Statistics reported. For the last 12 months, the index for all items jumped 8.3% before seasonal adjustments.

Increases in the shelter, food, and medical care indexes were the largest of the broad-based monthly all-items advance. These increases were mostly offset by a 10.6% decline in the gasoline index.

The food index rose 0.8% for the month, but the energy index fell 5.0% in August as the gasoline index dipped, while the electricity and natural gas indexes jumped. The index for all items, other than food and energy, climbed 0.6% in August, a larger rise than in July.

The all-items index increased 8.3% for the 12 months ending in August, smaller than the 8.5% increase for the period ending July. The energy index increased 23.8% for the 12 months ending in August, short of the 32.9% rise for the 12-month period ending in July.

U.S. COVID Cases Top 95.6 Million

COVID-19 cases and deaths can affect supply and demand for products such natural gas, especially since the fuel can be obtained worldwide. Investors in this global market are wise to monitor COVID-19 outbreaks and lockdowns that can cause supply chain problems. This week, more than 70 cities in China were under full or partial lockdown as the country enforces its policy of zero tolerance of cases, even as the morbidity has decreased compared to earlier stages of the virus.

A ray of hope beamed from the Chinese city of Chengdu on Thursday, Sept. 15, when local authorities lifted a full COVID-19 lockdown in all districts but still imposed curbs of movement. Chengdu, the capital of southwestern China’s Sichuan province, was placed in lockdown on Sept. 1 when COVID cases were detected. The city became the biggest Chinese metropolis shutdown since Shanghai in April and May.

U.S. COVID-19 deaths rose for the seventh consecutive week by more than 3,000, jumping to 1,053,405, as of Sept. 16, according to Johns Hopkins University. Cases in the United States climbed to 95,645,644. America remains the nation with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths in the last week to total 6,524,905, as of Sept. 16, according to Johns Hopkins. Global COVID-19 cases slowed to a gain of just below 3.4 million in the past week, down from almost 4 million from the previous week. The new worldwide case total is 611,324,387.

Roughly 79.2% of the U.S. population, or 263,103,582, have received at least one dose of a COVID-19 vaccine, as of Sept. 7, the CDC reported. Fully vaccinated people total 224,367,691, or 67.6%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 109.0 million people, up 200,000, compared to roughly 300,000 for the prior two weeks.

The six natural gas investments to purchase show potent potential to rise. With high inflation, recession risk after 0.75% rate hikes by the Fed in June and July, as well as possibly a 0.75% boost in September, the six natural gas investments to purchase could propel portfolios powerfully.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

 

Seven consumer staples investments to purchase for dividends amid inflation, recession risk and Russia’s refusal to end its invasion of Ukraine provide paths to protect personal portfolios against peril.

The seven consumer staples investments to purchase offer products and services people use frequently as essential items. Food, clothing and shelter are basic human needs and companies that provide them have customers who may cut back on buying such items but not eliminate them.

In contrast, the consumer discretionary sector manufactures and markets luxury goods that consumers might want to buy but can pass up when economic uncertainties require caution. Consumer staples, of which food and beverage are a subset, usually outperform stock indexes during recessions and bear markets.

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Pension Fund Chairman Picks Two of Seven Consumer Staples Investments to Purchase

Consumer staples companies tend to have reliable cash flows and can increase prices in response to inflation. Instead, consumers will reduce spending on non-essential products and services when money becomes tight, said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter.

For a broader portfolio that focuses on consumer staples in general, there are several good exchange-traded funds (ETFs) that deliver both solid returns and attractive yields. The most volatile of the group, and the one with the highest recent returns, is iShares U.S. Consumer Staples (IYK). Bargain hunters may like the fund’s recent pullback to offer a reduced buy price.

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The dividend-paying fund holds 52 stocks and 65% of the fund is in the 10 largest holdings. Top positions include Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), PepsiCo. (NASDAQ: PEP). The fund also offers a Securities and Exchange Commission (SEC) yield of 1.42%.

Bob Carlson, head of the Retirement Watch newsletter, meets with Paul Dykewicz.

For a diversified, dividend-paying position in food and beverage stocks, investors may want to consider an exchange-traded fund (ETF) such as Invesco Dynamic Food and Beverage (PBJ), suggested Carlson, who monitors that sector closely. The fund tends to have smaller and more growth-oriented companies than others in the consumer staples sector.

The ETF has 29 stocks, and 47% of the fund is in the 10 largest positions. Top holdings recently were General Mills (NYSE: GIS), Keurig Dr. Pepper (NASDAQ: KDP), Sysco (NYSE: SYY), Hershey (NYSE: HSY) and PepsiCo.

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Walmart Ranks as One of the Seven Consumer Staples Investments to Purchase

Jim Woods recommends consumer staples stocks in his Intelligence Report newsletter. One of them is dividend-paying Walmart (NYSE: WMT), of Bentonville, Arkansas, the largest U.S. retailer. The stock is a core holding in the Income Multipliers portfolio of his Intelligence Report newsletter.

Walmart reported excess inventory earlier in the year that led to lower-than-expected earnings, but the country’s largest and one of its most important retailers is rebounding, Woods wrote to his subscribers in his latest newsletter. The company reported that it has made significant progress on reducing discretionary inventory and focusing more on “necessity” spending, such as food and toiletries, among other such products, Woods continued.

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“Doing so helped ameliorate otherwise worse results,” Woods wrote. “So, while in the aggregate the latest retail earnings were better than feared, we still can’t rule out that the longer inflation stays in place, and as jobless claims slowly rise, consumer spending won’t be further pressured.”

Paul Dykewicz meets with stock picker Jim Woods, who heads the Intelligence Report newsletter, as well as co-leads Fast Money Alert.

Procter & Gamble Rates Among Seven Consumer Staples Investments to Purchase

Another Intelligence Report Income Multipliers portfolio position is Procter & Gamble, a Cincinnati, Ohio-based diversified consumer product company. Procter & Gamble offers a strong cash flow that allows it to provide a dividend yield of 2.6%.

In addition, Procter & Gamble has a rising dividend policy. In fact, the company has raised its dividend annually for the past 66 years.

Potential risks to the company include inflation weighing on its profit margins, weakened sales from emerging markets in China and the effects of a strong U.S. dollar, said Michelle Connell, who heads Dallas-based Portia Capital Management.

Another risk is that consumers may use private label and generic products more than those of Procter & Gamble, Connell continued. Even though the stock is down so far in 2022, it has a potential upside of 19% within the next 12 months, she added.

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Chocolate Maker Sweetens Seven Consumer Staples Investments to Purchase

The Hershey Company (NYSE: HSY), of Hershey, Pennsylvania, is a Buy recommendation from BofA Global Research, due partly to its resilience in times of economic distress when people crave sweets as comfort food.

“I’m sweet on the company literally known for its ‘Kisses,’ and that is The Hershey Company,” said Jim Woods, head of the Intelligence Report newsletter. Woods, who also directs High Velocity Options and Bullseye Stock Trader, has recommended Hershey in the past in and may do so again in his fast-paced trading services when the timing is right.

Woods explained that as the leading U.S. confectionery manufacturer, Hershey controls around 46% of the domestic chocolate space with brands such as Hershey bars, Reese’s and KitKat.

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“Last quarter, HSY saw strong earnings per share (EPS) growth of 22% year over year, and I expect the company to deliver an even tastier result when they report earnings again in late October,” Woods said. “The reason being is that confection sales are up of late, and I think it’s because many consumers are taking refuge in the small pleasures in life where they can, especially considering the dual pinch of rising inflation and soaring gas prices.”

PepsiCo Is Another of the Seven Consumer Staples Investments to Purchase

PepsiCo, a Purchase, New York-based global snack and beverage company, is among the seven consumer staples investments to purchase. Its key divisions include Frito-Lay North America (FLNA), Quaker Foods NA, North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA) and Asia, Middle East and North Africa (AMENA).

The company, featuring a 2.7% dividend yield, also operates in the United Kingdom, Mexico, India and China. Brands include Pepsi Cola, Mountain Dew, Gatorade, Tropicana, Frito-Lay, Quaker and others. BofA has a Buy rating and a $190 price target on the stock. BofA Global Research wrote a research note that its valuation reflects PepsiCo’s “balanced momentum, margin support and brand investments” are capable of delivering the high end of its long-term outlook.

Ramon Laguarta, upon taking over as PepsiCo’s chief executive officer in 2018, pivoted the company toward a growth-oriented path, BofA wrote. Reinvestment in the business and an appetite for risk remain at the core of the company’s cornerstone philosophies of this strategy, shown in PEP’s ramping digitization efforts, new category expansion and supply chain investments to fuel a stronger innovation engine, BofA added.

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Coca-Cola Bubbles Among Seven Consumer Staples Investments to Purchase

BofA Global Research placed a Buy rating on Coca-Cola with a $70 price objective, reflecting a target price-to-earnings (P/E) multiple of 26x the investment firm’s fiscal year 2023 earnings per share (EPS) estimate. This valuation is a premium to non-alcoholic beverage peers (22.9x), justified by BofA’s view that Coca-Cola should weather current macro headwinds better than its peers, given its size and pricing model.

Atlanta-based Coca-Cola, offering a 2.8% dividend yield, also is recommended by Mark Skousen, PhD, who added it as a favorite choice in his Forecasts & Strategies investment newsletter. Skousen placed Coca-Cola in his newsletter’s dividend-oriented Flying Five portfolio and has watched it turn a profit this year even though the market overall has dropped.

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Coca-Cola Retains Place in Skousen’s Flying Five Portfolio

Each August issue, Skousen searches for the five highest-yielding, lowest-priced stocks in the Dow Jones Industrial Average. Coca-Cola is one of four stocks that recently retained a place in that portfolio, featuring good dividend-paying, reasonably priced stocks whose shares look ripe to rise.

Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz.

Skousen also teams up with Jim Woods for their Fast Money Alert trading service that recently recommended an energy beverage stock. Both seasoned investment prognosticators scan the beverage industry for stocks that appear positioned to outperform the market in the current conditions of high inflation, supply chain challenges and Fed rate hikes aimed at slowing economic growth.

Connell is another advocate of Coca-Cola, a company that has boosted its dividend payout for the past 60 years. It currently offers a dividend yield of 2.7%. 

Warren Buffett, one of the world’s best investors, must like the stock and dividend, since it ranks as his third-biggest holding, trailing only Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC), Connell said. The stock is up by double-digit percentages this year and has the financial fundamentals to rise higher, she added. 

Michelle Connell leads Portia Capital Management.

U.S. COVID Deaths Top 1.05 Million

COVID-19 cases and deaths can affect supply and demand for consumer staples such as food and beverages, especially with sourcing ingredients globally. Investors would be wise to track trends in COVID-19 closely, especially with new lockdowns occurring in China as it adheres to its “zero” tolerance policy for cases of the virus. China’s metropolis of Shenzhen, which borders Hong Kong, was locked down last weekend, since the country takes such measures, as well as requires frequent testing and quarantines people, when infections of the virus break out in certain locales.

U.S. COVID-19 deaths rose for the sixth consecutive week by more than 3,000, jumping to 1,050,255, as of Sept. 9, according to Johns Hopkins University. Cases in the United States climbed to 95,179,894. America still faces a dismal distinction as the nation with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths in the last week only rose about half as fast as the 33,000-plus the previous week, to total 6,512,552, as of Sept. 9, according to Johns Hopkins. Global COVID-19 cases climbed nearly 4 million in the past week to reach 607,843,922 on the same date.

Roughly 79.2% of the U.S. population, or 263,103,582, have received at least one dose of a COVID-19 vaccine, as of Sept. 7, the CDC reported. Fully vaccinated people total 224,367,691, or 67.6%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 109.0 million people, up 300,000 for the second consecutive week.

The seven consumer staples investments to purchase for dividends offer products and services that should remain in demand despite 8.5% inflation, according to the latest Consumer Price Index report. With rising risk of a recession after two straight 0.75% rate hikes by the Fed in June and July, as well as possibly another increase of that size in September as Russia keeps attacking Ukraine and the latter country tries to pursue a counteroffensive to reclaim its lost land, the seven consumer staples investments offer enticing opportunities for risk-averse investors.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Four dividend-paying food stocks to purchase as protection from inflation and war should largely be outside the line of fire from the fallout of soaring prices and Russia’s ruinous invasion of Ukraine that has disrupted agricultural commodities, food and grain needed by people facing famine in other countries.

The blow to the world’s food supply has only worsened in the last week as flooding has pounded Pakistan and left one-third of the nation completely submerged by historic flooding, the country’s climate minister said. A drought has stunted food production further in much of Africa, as well as hurt Spain and many other European countries.

Almost half of the 27-nation European Union is facing drought conditions, with Belgium, France, Germany, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Romania joining Spain as increasingly affected. In fact, an ancient Roman military camp in northwestern Spain has reappeared fully as reservoirs have shrunk in Europe amid the record-breaking drought.

 

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Four Dividend-paying Food Stocks to Purchase Include ETF Picked by Pension Head

Food, beverages and other consumer staples investments normally outperform stock indexes during recessions and bear markets, counseled Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. Such companies tend to have reliable cash flows and can raise prices as costs climb, he added.

“Consumers will reduce spending in other areas when money becomes tight,” Carlson continued.

 Bob Carlson, leader of Retirement Watch, meets with columnist and author Paul Dykewicz.

For a diversified position in food and beverage stocks, Carlson suggested an exchange-traded fund (ETF) such as Invesco Dynamic Food and Beverage (PBJ). The fund tends to include smaller, growth-oriented companies than others in the consumer staples sector, he added.

The ETF has 29 stocks, and 47% of the fund is in the 10 largest positions. Top holdings recently were General Mills (NYSE: GIS), Keurig Dr. Pepper (NASDAQ: KDP), Sysco (NYSE: SYY), Hershey (NYSE: HSY) and PepsiCo (NASDAQ: PEP).

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Chocolate Maker Picked by Woods and BofA as One of Four Dividend-paying Food Stocks to Purchase 

The Hershey Company (NYSE: HSY), of Hershey, Pennsylvania, is the first recommended stock among the four food investments to buy. It has many favorable attributes, including a Buy recommendation from BofA Global Research, due partly to its resilience in times of economic distress when people crave sweets as comfort food.

“I’m sweet on the company literally known for its ‘Kisses,’ and that is The Hershey Company,” said Jim Woods, who heads the Successful Investing and Intelligence Report newsletters, as well as directs High Velocity Options and Bullseye Stock Trader. He has recommended Hershey in the past in High Velocity Options and could do so again in that fast-paced trading service when the timing is right.

Paul Dykewicz meets with stock picker Jim Woods, who co-leads Fast Money Alert

Woods explained that as the leading U.S. confectionery manufacturer, Hershey controls around 46% of the domestic chocolate space with brands such as Hershey bars, Reese’s and KitKat.

“Last quarter, HSY saw strong earnings per share (EPS) growth of 22% year over year, and I expect the company to deliver an even tastier result when they report earnings again in late October,” Woods said. “The reason being is that confection sales are up of late, and I think it’s because many consumers are taking refuge in the small pleasures in life where they can, especially considering the dual pinch of rising inflation and soaring gas prices.”

Another enticing aspect of HSY is the stock’s technical pattern, which shows a bullish breakout over the past week that has vaulted it back above resistance at the 50-day moving average, added Woods.

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Archer Daniels Midland Becomes One of Four Dividend-paying Food Stocks to Purchase

Chicago-based Archer Daniels Midland (ADM) is one of the world’s largest processors of food and beverage ingredients. The dividend-paying stock also has a smaller business focused on nutrition for animals and people.

“The company is considered to have some of the strongest fundamentals for its industry,” said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management. Those fundamentals feature one of the highest growth rates for return on assets, a five-year earnings per share (EPS) growth greater than the industry and a lower price/cash flow ratio than its competitors, she added.

Thus, an investor pays less for ADM’s cash flow than for the company’s competitors, Connell continued.

The company has been consistent in providing its investors with upside surprises for the last 12 quarters, Connell counseled. This is due to high demand for its products, sustained productivity improvement and product innovation, she added.

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For example, the development of destination marketing for the company’s agricultural services business segment involves moving products from ports of entry to their ultimate destination, Connell said. This has enhanced profit margins for the segment, with ADM offering guidance that its volume growth will reach 30% for destination marketing by 2025, she added.

“Thus, this innovation will continue to be a future profit enhancer,” Connell counseled.

ADM Is One of Four Dividend-paying Food Stocks to Purchase

Another plus is that ADM is a “solid dividend candidate” with a yield of 1.76%, Connell continued.

“ADM has been an exceptional investment… versus the underlying market or the S&P,” Connell said. “It should continue this trend in the foreseeable future.”

Michelle Connell leads Dallas-based Portia Capital Management.

Connell offered the following highlights for ADM.

  • For the past 10 years, an investor in ADM would have made 239%, before factoring in its dividend yield. For the same period, the S&P has only returned 187%.
  • For many years, ADM did not repurchase its stock. However, this past February, the company announced an 8-billion share repurchase program.
  • While the stock is up over 30% year to date, most analysts believe that there’s more upside from ADM’s current price.
  • The stock’s 12-month upside estimates range between 10% and 25%.

But ADM is not without risk, Connell said. Risks include foreign exchange exposure and a larger than anticipated impact on production from inflation.

J.M. Smucker Earns Berth Among Four Dividend-paying Food Stocks to Purchase

J.M. Smucker (SJM), of Orrville, Ohio, is one of the largest U.S. food manufacturing and food service companies, with $8 billion in sales and $1.4 billion in operating profit in fiscal year 2022 across its four main sectors. Those sectors are U.S. retail consumer coffee, U.S. retail consumer foods, U.S. retail pet foods and international and food service.

BofA Global Research rates dividend-paying SJM shares as a Buy after several years of divestitures. The company now appears to be positioned well to take advantage of low price elasticities in its remaining portfolio compared to its center-store packaged food peers, according to BofA.

In addition, SJM has reduced its private label exposure, while optimizing margins and stimulating sales growth in core products through innovation and capacity expansion.

BofA’s $160 price objective on SJM, up recently from $155, is based on 17.5x of the investment firm’s 2023 EPS estimate. The valuation multiple is at a discount to overall peer group average of 19x, but more in line with centers store packaged food peers that is warranted as SJM executes against its fiscal year 2023 plan, BofA continued.

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Potential outperformance could occur with faster-than-expected sales growth and greater share gains, specifically in “Uncrustables” and coffee, BoA wrote in a research note. Other pluses could come from lower-than-expected commodity cost inflation, a quicker-than-anticipated rebound after its Jif peanut butter recall and an improved balance sheet that allows for share buybacks or acquisitions.

Risks to BofA’s price objective include continued weakness in sales growth and profitability primarily within pet food as competition intensifies, pet food expansion plans slow, demand elasticity in roast and ground coffee increases and Jif recovers more slowly than expected.

PepsiCo Joins Four Dividend-paying Food Stocks to Purchase

BofA’s “quality” holdings in consumer staples not only include Hershey but dividend-paying PepsiCo (NASDAQ: PEP), a Purchase, New York-based global snack and beverage company that manufactures and markets salty and convenient snacks, carbonated and non-carbonated beverages and foods. Key divisions include Frito-Lay North America (FLNA), Quaker Foods NA, North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA) and Asia, Middle East and North Africa (AMENA).

The company also operates in the United Kingdom, Mexico, India and China. Brands include Pepsi Cola, Mountain Dew, Gatorade, Tropicana, Frito-Lay, Quaker and among others. BofA has a Buy rating and a $190 price target on the stock.

“We continue to believe our multiple fairly reflects PEP’s balanced momentum, margin support and brand investments, capable of delivering the high end of their long-term outlook,” according to a recent BofA research report.

Upon taking the helm as PepsiCo’s CEO in 2018, Ramon Laguarta’s efforts to pivot the company towards a growth-oriented path have taken root, BofA wrote. Reinvestment in the business and an appetite for risk remain the cornerstone philosophies of this strategy, reflected in PEP’s ramping digitization efforts, new category expansion and supply chain investments to fuel a stronger innovation engine, BofA added.

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Critics of Russia’s President Vladimir Putin Die with Suspicious Frequency, News Reports Show

Bill Browder, an American-born British financier who serves as chief executive officer and co-founder of Hermitage Capital Management, the investment advisor to the Hermitage Fund, led the company when it was the largest foreign portfolio investor in Russia. Browder cautioned that business leaders in Russia faced increased risk of dying if they are critical of the policies of the country’s President Vladimir Putin. Unlike the United States and many other countries where freedom of speech is protected to encourage sharing ideas and expressing opinions, Putin’s seemingly autocratic rule of Russia has no such protections and business leaders who voice opinions contrary to the government sometimes end up dead under mysterious circumstances, news reports show.

The latest example occurred Thursday, Sept. 1, when Ravil Maganov, 67, chairman of the board at Russia’s Lukoil energy company, fell from a window at the Central Clinical Hospital in Moscow, where he had been receiving care. His death occurred on the same day Putin visited the hospital to lay flowers near the coffin of former Soviet President Mikhail Gorbachev, who ushered in policies of openness known as glasnost, and perestroika, a restructuring of the Communist economy and political system, that led to increased trade with the West, cross-cultural tourism and reduced spending on defense among many nations. Peace became a rallying cry under Gorbachev’s leadership to replace a Cold War between the former Soviet Union and the United States.

Lukoil issued a statement that Maganov died “after a severe illness,” but did not specify the cause of death. Maganov “immensely contributed” to the development of not only Lukoil, but of the entire Russian oil and gas sector, the company announced in a statement.

Browder expressed the view that the circumstances surrounding the mysterious death of his friend and Latvia-born American investor, Dan Rapoport, 52, deserve close scrutiny. Rapoport fell from a luxury apartment building in Washington, D.C., on the night of Aug. 14, under “extremely suspicious” conditions, Browder added.

Rapoport and Browder had criticized Putin and his policies publicly. Browder’s late Russian lawyer, Sergei Magnitsky, who exposed corruption and misconduct by Russian government officials, died while locked up by the country’s authorities. Browder became acquainted with Rapoport in Moscow years ago, before they both fell out of favor with the Russian regime.

Whenever someone who has voiced a negative view of the Putin-led government dies suspiciously, potential foul play should be investigated, Browder said.

U.S. COVID Deaths Near 1.05 Million

COVID-19 cases and deaths can affect supply and demand for products such food, particularly with global sourcing of ingredients. For that reason, trends warrant watching.

U.S. COVID-19 deaths rose for the fifth consecutive week by more than 3,000, reaching 1,047,440, as of Sept. 2, according to Johns Hopkins University. Cases in the United States climbed to 94,723,189, America holds the dreaded distinction as the nation with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths in the last week increased to 6,492,856, as of Sept. 2, according to Johns Hopkins. Global COVID-19 cases reached 603,491,240 on the same date.

Roughly 79.2% of the U.S. population, or 262,908,216, have received at least one dose of a COVID-19 vaccine, as of Aug. 31, the CDC reported. Fully vaccinated people total 224,113,439, or 67.5%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 108.8 million people, up 300,000 in the past week.

The four dividend-paying food investments to purchase offer protection from the worst inflation in 40-plus years, a drought and Russia’s six-month-plus invasion of Ukraine. After 0.75% Fed rate hikes in June and July and possibly another increase of that size in September, based on the latest comments from U.S. central bank leaders, the four dividend-paying food investments to buy may be enticing for savvy investors to consider.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Four dividend income beverage investments to purchase provide potent potential to profit while avoiding the worst effects of high inflation, a recession or Russia’s persistent invasion of Ukraine.

The four dividend income beverage investments to purchase may well be worth celebrating with their growth stories intact and consumers’ willingness to absorb consumer price inflation that most recently reached 8.5% annually. Beverage investments might not be fully inflation-resistant, but they are far more protected than consumer discrepancy stocks that specialize in luxury goods.

“Consumer staples, of which food and beverage are a subset, usually outperform stock indexes during recessions and bear markets,” said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. “The companies tend to have reliable cash flows and can increase prices as costs rise. Consumers will reduce spending in other areas when money becomes tight.”

A Diversified ETF Is One of the Four Dividend Income Beverage Investments to Purchase

For a diversified position in food and beverage stocks, investors may want to consider an exchange-traded fund (ETF) such as Invesco Dynamic Food and Beverage (PBJ), suggested Carlson, who monitors that sector closely. The fund tends to have smaller and more growth-oriented companies than others in the consumer staples sector.

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The ETF has 29 stocks, and 47% of the fund is in the 10 largest positions. Top holdings recently were General Mills (NYSE: GIS), Keurig Dr. Pepper (NASDAQ: KDP), Sysco (NYSE: SYY), Hershey (NYSE: HSY) and PepsiCo (NASDAQ: PEP).

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The fund is up 6.18% in the last month, 6.07% so far in 2022, and 13.82% during the past year. Its dividend yield is 0.8%, according to Stock Rover.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

Coca-Cola Leads Four Dividend Income Beverage Investments to Purchase

BofA Global Research put a Buy rating on Coca-Cola and set a $70 price objective, reflecting a target price-to-earnings (P/E) multiple of 26x the investment firm’s fiscal year 2023 earnings per share (EPS) estimate. This valuation is a premium to non-alcoholic beverage peers (22.9x), justified by BofA’s view that Coca-Cola should weather current macro headwinds better than its peers, given its size and pricing model.

A fan of Atlanta-based Coca-Cola is Mark Skousen, PhD, who has recommended it profitably in his Forecasts & Strategies investment newsletter. Skousen placed Coca-Cola in his newsletter’s dividend-oriented Flying Five portfolio.

Each August issue, Skousen searches for the five highest-yielding, lowest-priced stocks in the Dow Jones Industrial Average. Coca-Cola is one of four stocks that retained a place in that portfolio, featuring good dividend-paying, reasonably priced stocks whose shares look ripe to rise.

Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz.

Skousen also teams up with Jim Woods for their Fast Money Alert trading service that recently recommended a new energy beverage stock. Both seasoned investment prognosticators scan the beverage industry for stocks that appear positioned to outperform the market in the current conditions of high inflation, supply chain challenges and Fed rate hikes aimed at slowing economic growth.

Paul Dykewicz meets with Jim Woods, of the Successful Investing and Intelligence Report newsletters, as well as High Velocity Options.

Connell Further Favors Coca-Cola as One of Four Dividend Income Beverage Investments to Purchase

Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management, performed an analysis of Coca-Cola and likes that it has raised its dividend for 60 consecutive years. She also praised its current dividend yield of 2.74%.

Warren Buffett must like the dividend as well, Connell continued, since Coca-Cola ranks as his third-largest holding, after Apple (NASDAQ:  AAPL) and Bank of America Corporation (NYSE: BAC). In addition, the stock has gained 10.71% so far this year, while having fundamentals that signal further upside, she added.

Michelle Connell heads Dallas-based Portia Capital Management.

Coca-Cola’s management also boosted guidance during the company’s most recent earnings announcement. As part of that update, company leaders indicated plans to retire more than 200 products to focus on the pricing and profits of their strongest brands.

The consolidation is aimed at boosting margins and profitability, Connell counseled. There is room for increased market share in emerging and developing economies, since the company’s current share is only 7% in such regions, compared to 14% in developed markets.

“As more of the populations enter middle class status, their consumption of brands such as KO will increase,” Connell said.

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PepsiCo Joins Four Dividend Income Beverage Investments to Purchase

PepsiCo, a Purchase, New York-based global snack and beverage company, manufactures and markets salty and convenient snacks, carbonated and non-carbonated beverages and foods. Key divisions include Frito-Lay North America (FLNA), Quaker Foods NA, North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA) and Asia, Middle East and North Africa (AMENA).

The company also operates in the United Kingdom, Mexico, India and China. Brands include Pepsi Cola, Mountain Dew, Gatorade, Tropicana, Frito-Lay, Quaker and among others. BofA has a Buy rating and a $190 price target on the stock.

“We continue to believe our multiple fairly reflects PEP’s balanced momentum, margin support and brand investments, capable of delivering the high end of their long-term outlook,” according to a recent BofA research report.

PepsiCo CEO Highlights Company’s Growth Strategy

Upon taking over as the company’s CEO in 2018, Ramon Laguarta’s efforts to pivot the company towards a growth-oriented path have taken root, BofA wrote. Reinvestment in the business and an appetite for risk remain the cornerstone philosophies of this strategy, reflected in PEP’s ramping digitization efforts, new category expansion and supply chain investments to fuel a stronger innovation engine, BofA added.

However, PepsiCo’s energy drink portfolio remains a work in progress. With Bang Energy exiting PEP’s direct store delivery (DSD) system, Rockstar still in “recovery mode” and Mountain Dew in early stages of expanding in energy drinks, the company still has the potential to make a “meaningful splash” in the energy beverage category, BofA wrote.

“While investors have speculated on the potential for a material acquisition in the space to take Bang’s place, our impression is that another distribution partnership was, in fact, more likely, with PEP seeming to prefer the ease of distributing a well-established brand within the category, according to BofA.

Stock’s Strengths May Spur Some Investors to Say, ‘Pepsi Please’

Thus far, PepsiCo Beverages North America (PBNA), one of the largest beverage companies in North America, has grown less than the beverage category and ceded share to competitors as Gatorade supply chain snarls slowed performance. With production subsequently improving, better service levels have begun materializing in Nielsen’s U.S. scanner data, showing Gatorade resuming market share growth.

“Though early in the brand’s recovery, we are encouraged by PEP’s continued outperformance against the away-from-home segment,” BofA opined. “In carbonated soft drinks, volume share losses have disappointed.”

However, loosening supply chain bottle necks are expected to have a positive impact on its share of volume for the balance of year, BofA added.

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Keurig Dr. Pepper Procures Place Among Four Dividend Income Beverage Investments to Purchase

Keurig Dr. Pepper, a Burlington, Massachusetts-based beverage company formerly known as Keurig Green Mountain, is rated a Buy with a price objective of $45 by BofA. The valuation is a slight premium over non-alcoholic beverage peers due to KDP’s attractive portfolio and line of sight to coffee production recovery, as well as new capacity to help meet both existing at-home demand and recovery in away-from-home sales, BofA continued.

The company’s last quarterly earnings call marked Bob Gamgort’s final appearance as CEO. His replacement is Ozan Dokmecoiglu, who had been chief financial officer and president of the company’s international business.

The new leader will use his operating experience to usher in the company’s next phase, BofA noted. That phase will include expanding coffee pod capacity.

BofA set a Buy rating and $115 price objective on the stock. The beverage company offers faster relative growth and favorable margins compared to its peers, the investment firm wrote.

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NAPA Offers Alternative to Four Dividend Income Beverage Investments to Purchase

The Duckhorn Portfolio, Inc. (NYSE: NAPA), a non-dividend-paying, Saint Helena, California-based luxury wine company, with 10 wineries, eight winemaking facilities, seven tasting rooms and more than 1,100 acres of vineyards, has shown better-than-expected recovery of its on-premise business, Bofa wrote. The investment firm lowered its price objective on the stock from $26 to $24 but retained its buy rating.

“Given that NAPA’s on-premise business has recovered faster than its original plans, we lower our sales forecast for next year fiscal year from +10.4% to +7.8%, which is still in line with the company’s long-term algorithm of high single digits,” BofA wrote.

The investment firm reported assessing how the NAPA consumer is faring in light of increased inflationary pressures, the impact of potential slowing in the on-premise channel independent restaurant traffic, trends toward premium wines and the allocation of distributor/retail space to luxury wine in 2023.

BofA gave NAPA a higher valuation than its peers due to superior growth, portfolio mix and margin structure, but a discount to high-growth beverage peers. The lower multiple also reflects a pullback in European Spirits beverage peers, BofA added.

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Non-Dividend Monster Deviates from Four Dividend Income Beverage Investments to Purchase

Non-dividend-paying Monster Beverage Corp. (NASDAQ: MNST), a Weston, Massachusetts-based energy drink company, is rated a Buy by BofA and has been given a $115 price objective. The rating is predicated on the Monster’s fast sales growth and favorable margin structure, BofA added.

BofA’s valuation of Monster is at a premium to both the large-cap beverage group and to other consumer staples growth companies. The premium multiple is “warranted,” according to BofA, due to Monster’s faster relative growth and favorable margin structure than its peers.

Risks to investing in Monster include the company’s possible loss of market share while operating in a mature industry, uncertainty about the success of new product launches, slower-than-expected benefit from international expansion, a rotation from defensive names back into value names, more potential COVID-19 headwinds and negative currency moves.

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Worldwide COVID Cases Near 600 Million

COVID-19 cases and deaths can affect supply and demand for products such beverages, especially in global markets. As a result, the latest trends always bear watching.

Worldwide COVID-19 cases have hit 599,771,519, jumping more than 2.2 million in the past several days, according to Johns Hopkins. Global COVID-19 deaths now total 6,483,212, up 15,669 in the past few days.

U.S. COVID-19 deaths rose for the fourth consecutive week by more than 3,000, jumping to 1,043,347, Johns Hopkins reported. Cases in the United States reached 94,064,682, up 310,9847 in the past several days. America unfortunately still holds the dreary distinction as the country with the largest number of COVID-19 deaths and cases.

Roughly 79.1% of the U.S. population, or 262,643,277, have received at least one dose of a COVID-19 vaccine, as of Aug. 24, the CDC reported. Fully vaccinated people total 223,914,723, or 67.4%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 108.5 million people.

The four dividend income beverage investments to purchase provide a path to profit and to protect against the highest inflation in more than 40 years, fears of a recession and Russia’s unrelenting war against Ukraine. After consecutive 0.75% Fed rate hikes in June and July and possibly other increases ahead, the four dividend income beverage investments to purchase may prove to be compelling choices.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Three socially responsible dividend stocks to buy benefit from fertilizer use, featuring two large providers of the seasonal commodity and a lesser-known stock that is expected to outperform the market.

Socially responsible investing (SRI) targets positive social change and these three companies are poised to provide profitable returns to investors. These three socially responsible dividend stocks offer a way to pursue sustainable investing to protect the environment and fend off climate change by adopting environmental, social and governance (ESG) policies.

Those policies are intended to measure the sustainability and ethical impact of investing in a business or a stock. Fertilizer and agriculture are among the sectors that have been engaged in sustainable solutions for their businesses not only to safeguard the environment, but to serve customers and to offer good ESG investing opportunities.

Department of Agriculture Funding Could Lift Three Socially Responsible Dividend Stocks to Buy

The U.S. Department of Agriculture (USDA) is aiding additional fertilizer production for American farmers to address rising costs by providing $250 million through a new grant program this summer to boost independent, innovative and sustainable American fertilizer production to supply American farmers. To address growing competitive concerns in the agricultural supply chain, USDA launched a public inquiry seeking information about seeds and agricultural inputs, fertilizer and retail markets.

Supply chain disruptions from the global pandemic to Russia’s President Vladimir Putin’s “unprovoked war against Ukraine” have shown the importance of investing in this key link in the U.S. agricultural supply chain, said Agriculture Secretary Tom Vilsack, in a statement.

ESG is a subset of non-financial performance indicators that include ethical, sustainable and corporate government issues such as making sure there are systems in place to ensure accountability and to manage a corporation’s carbon footprint. Another potential lift for fertilizer investments is a recent agreement aimed at temporarily halting Russia’s blockade of shipments from Ukraine that are crucial to avert worsening famine conditions in Africa.

Shipping Pact to Transport Food, Fertilizer and Grain Could Help Stop Enflaming Famine

A pact, arranged by the United Nations (UN) and Turkey, gained agreement from Russia to let ships leave certain Ukrainian ports on the Black Sea under military escort, with cargo inspections, to ensure only food, fertilizer or grain is carried, not any other commodities. The agreement, if honored by consistently by Russia, would create a protected shipping lane to help alleviate global food shortages for Ukraine’s customers who include some of the world’s poorest nations, including Eritrea in Africa.

Corn has been the key export since the agreement took effect last month but it typically is used for animal feed or to produce biofuel ethanol rather than as food for humans. In addition, Russia showed the pact’s vulnerability by firing missiles at Ukraine’s biggest seaport hours after consenting on July 22 to allow grain to be transported from there.

Another potential breach by Russia occurred on Aug. 17 when its missile strikes allegedly hit a recreation center and several other buildings in Ukraine’s port city of Odesa, as well as the Petro Mohyla Black Sea National University in Mykolayiv. To alleviate hunger, the United States agreed to give more than $68 million to help the United Nations “purchase, move and store” up to 150,000 metric tons of Ukrainian wheat in response to the global food crisis, the U.S. Agency for International Development announced Tuesday, Aug. 16.

The donation would provide 23,000 metric tons of wheat to ease a humanitarian crisis in the Horn of Africa, where a historic drought has contributed to putting millions of people on the brink of starvation. In Africa, more than 18 million people are enduring extreme hunger in Ethiopia, Somalia and Kenya, according to the World Economic Forum.

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Mosaic Joins Three Socially Responsible Dividend Stocks to Buy in Benefitting from Fertilizer

Mosaic Company (NYSE: MOS), a dividend-paying, Fortune 500 company headquartered in Tampa, Florida, mines phosphate, potash and urea. The largest U.S. producer of potash and phosphate fertilizer, Mosaic, aiming to meet key ESG targets by 2025, operates through business segments such as international distribution and Mosaic Fertilizantes.

Support for Mosaic can help to counter Russia as a large global producer of potash, a key crop nutrient that is used in agricultural production. Strong growth in Mosaic’s year-over-year earnings per share (EPS) and rising prices for fertilizer from reduced supply out of Russia led to a surge in the value of MOS call options recently recommended by Jim Woods in his High Velocity Options trading service.

Woods specifically recommended MOS April 14 $50.00 call options in his High Velocity Options advisory service to produce a 128.72% gain. In March, Woods advised that his subscribers take profits after the options soared in value by 150% within a week. Those triple-digit-percentage gains show how call options can be a huge money maker.

Paul Dykewicz interviews Jim Woods, of the Successful Investing and Intelligence Report newsletters, as well as High Velocity Options.

Three Socially Responsible Dividend Stocks to Buy as Putin’s Policies Harm Fertilizer Supply

Fertilizer manufacturers appear likely to profit from Russia’s continuing attack against Ukraine, said Bryan Perry, leader of the Cash Machine investment newsletter. Perry, whose trading services include Breakout Options Alert, acknowledged there may be “demand destruction” in the energy sector, but not in the global food supply.

Paul Dykewicz interviews Bryan Perry, who heads the Cash Machine newsletter.

Wheat, corn and soybean prices have climbed since the military attack on Ukraine by Russia, Perry continued. Putin’s war and the sanctions it triggered as other countries sought to sway Russia’s leader to stop his attack of Ukraine have helped CF Industries Holdings, Inc. (NYSE: CF), a dividend-paying manufacturer and distributor of agricultural fertilizers, including ammonia. Much further gains could be ahead, Perry opined.

Three Socially Responsible Dividend Stocks to Buy, Despite Distribution Costs Increasing for Fertilizer

However, the company, based in Deerfield, Illinois, a suburb of Chicago, also faces increased distribution costs, especially for transportation. Those extra costs likely will be shifted to customers by the manufacturer.

In addition, the expense of producing nitrogen fertilizers is highly dependent on the cost of natural gas, which is the principal raw material and primary fuel source used in ammonia production at the company’s manufacturing sites. For many global producers, more than 70% of the total cost to produce ammonia is based on the expense of natural gas.

The cost of natural gas varies significantly between geographic locations. European customers may see their financial burden grow, since natural gas prices have been surging there, as Russia has cut the export of that commodity in an apparent attempt to squeeze energy-needy nations.

CF Industries, a global manufacturer that also provides hydrogen and nitrogen products, published a 2021 annual report and sustainability reporting materials. The reports provide insight into the company’s clean energy strategy and progress in 2021 towards its ESG goals.

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Yet another fan of CF Industries Holdings is Mark Skousen, PhD, who recently recommended it profitably in his Five Star Trader advisory service. Skousen follows commodities closely as the head the Forecasts & Strategies investment newsletter that also includes commodities when they are trending up.

Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz.

AGCO Makes List of Three Socially Responsible Dividend Stocks to Buy

AGCO Corporation, a Duluth Georgia-based designer, manufacturer and distributor of agricultural equipment, offers a path to profit from the rising demand for fertilizer, said Michelle Connell, president and owner of Dallas-based Portia Capital Management.

Michelle Connell heads Dallas-based Portia Capital Management.

Sustainability-driven technology growth offers a roadmap that AGCO is taking in the right strategic direction, according to a recent research report by Chicago-based brokerage firm William Blair & Co. The investment firm’s analysts attended AGCO’s Sustainable Technology event in Germany, which included a discussion on growth opportunities such as Fendt globalization, precision agriculture and aftermarket sales growth.

AGCO offers products centered around sustainability and a regulatory outlook that includes a “Green Deal” in Europe, according to William Blair & Co. The company is on the “right path” toward providing customers with high-tech solutions to address the future economics and regulatory environment of farming, the analysts wrote.

“Ultimately, the longer-term growth for ag is being driven by the need for farmers to grow more and use fewer inputs/resources, which is a function of the regulatory environment, private investment, an increased focus on sustainability and the economic environment for growers,” wrote Lawrence De Maria, the lead analyst at William Blair & Co. on AGCO. The company has proven to be adept at providing commercial offerings that have short payback periods while enabling compliance, he added.

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Three Socially Responsible Dividend Stocks to Buy Include One with 30% Upside

Connell said she put AGCO through one of her financial screening tools and it showed the stock possessed “very strong fundamentals, as well as momentum.” She indicated the share price has upside of 30% from current levels.

“Thus, I would classify it as a growth and value play,” Connell told me.

JP Morgan’s analytical team also likes AGCO and described it as a strong food insecurity play. The JP Morgan analysts’ upside 12-month target is 15% from the current level.

A key challenge for the company is its need to produce enough machinery during the second half of 2022, since it appears to be manufacturing at capacity. Therefore, JP Morgan believes that the company’s revenue guidance for the back half of this year is quite conservative.

Connell Counsels Caution about AGCO’s Concentration of Sales in Europe

Connell counseled that her main concern is that AGCO’s largest revenue region is the European Union (EU), accounting for more than 50% of the company’s total sales. The EU is facing a severe recession, greater difficulties with power generation this winter and now the loss of the Rhine River as a means of transporting goods, she added.

One of these factors could negatively effect AGCO’s ability to produce or deliver its equipment before the end of 2022, Connell cautioned.

However, William Blair & Co. reported its main takeaways from its meeting in Germany included: 1) growth opportunities are tracking ahead of schedule and can provide $4.30-plus in incremental earnings per share through 2025, 2) the AGCO tech stack and retrofit-first approach addresses key technologies and differentiation, and will fit within the coming EU regulatory environment, 3) and AGCO’s portfolio and roadmap is well positioned to address the needs of growers for electrification, precision fertilizer, precision planting, autonomy, etc. Future portfolio adjustments, such as divestitures, are possible and aligned around the core business, while factory run-rates have improved following a ransomware incident, the investment firm added.

Ag Fund Ranks Offers Alternative to Three Socially Responsible Dividend Stocks to Buy

Despite the horrors of war, investors have a chance to profit from the jump in agriculture prices and other commodities through the futures markets. Instead of buying futures directly, investors can invest in diversified agricultural commodities through Invesco DB Agriculture (DBA), an agricultural exchange-traded fund (ETF) recommended by Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. Investment funds such as DBA hold stocks such as Mosaic and CF Industries that increasingly are trying to adhere to ESG policies.

Pension Fund Chairman Bob Carlson, leader of Retirement Watch, meets with Paul Dykewicz.

Ukraine’s democratically elected President Volodymyr Zelensky has been seeking to rally his countrymen since Russia’s Feb. 24 invasion to defend their nation as he has obtained guns, advanced weapons and ammunition from its allies. The cost in life and limb has been high for the Ukrainians and the Russians. The invading troops have included many conscripts, who, in some cases, have resisted fighting against Ukrainians.

With many commodity prices already rising substantially since Russia’s invasion, there may still be more such pressure in the months ahead in the fertilizer market due to what is happening in Ukraine. Oil, natural gas, grains and some metals may face further price hikes, Carlson cautioned.

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COVID Cases Do Not Cause Collapse of Three Socially Responsible Dividend Stocks to Buy

COVID-19 cases and deaths can interfere with supply chains and affect demand for products such as fertilizer, particularly as prices for the seasonal commodity climb. As a result, investors must monitor the latest trends.

U.S. COVID-19 deaths climbed for the fifth consecutive week by more than 3,000 to 1,037,916, as of Aug. 16, according to Johns Hopkins University. Cases in the United States rose 794,047 in the past week to reach 92,343,316, showing a slight jump in the rate of increase from the previous week. America still holds the dreaded distinction as the country with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths in the last week increased 16,857, down from 18,318 last week, but up from 16,513 the prior week, totaling 6,440,713, as of Aug. 16, according to Johns Hopkins. Global COVID-19 cases increased 5,661,128, down more than 7 million each of the past three weeks, reaching 592,131,424 by Aug. 16.

Roughly 79% of the U.S. population, or 26,323,837, have received at least one dose of a COVID-19 vaccine, as of Aug. 17, the CDC reported. Fully vaccinated people total 223,684,995, or 67.4%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 108.2 million people.

The three socially responsible dividend stocks to buy offer an alternative path to profit in the face of Russia’s continuing assault on Ukraine’s pre-war economic strength in the agricultural arena. The ESG trend is expected to keep rising, despite the highest U.S. inflation in 42 years, consecutive 0.75% Fed rate hikes in June and July and other potential increases in the months ahead aimed at curbing U.S. consumer prices that jumped 8.5% and producer prices that climbed 9.8% in the past 12 months.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Four fertilizer income investments to purchase after Russia’s agreement to stop its blockade of grain and food shipments from Ukraine temporarily offer one of the first rays of hope in the region since Feb. 24 when President Vladimir Putin ordered more than 100,000 troops to invade his neighboring nation.

Russia’s sustained attack and its blockade of Black Sea ports in Ukraine worsened famine conditions in Africa, leading the United Nations (UN) and Turkey to broker a pact for ships to be allowed to leave the war-torn area under military escort, with the cargo inspected, to ensure only food, fertilizer or grain is carried, not any other commodities. The agreement would create a protected shipping corridor to help alleviate global food shortages for Ukraine’s customers who include some of the world’s poorest nations, such as Eritrea in Africa.

A problem is that corn, the key export since the agreement took effect on July 22, typically is used for animal feed or to produce biofuel ethanol rather than for human consumption. Implementation could aid food supply and reduce prices if shipments quicken, but Russia showed the pact’s vulnerability by firing missiles at Ukraine’s biggest seaport hours after formally consenting for grain, fertilizer and food to be transported from there.

Four Fertilizer Income Investments to Purchase Should Gain from Fragile Deal

The fragile shipping deal reveals the precariousness of any commitments from Russia due to its propensity to violate international law with acts that have been characterized as “war crimes” by independent observers based on documented evidence. After Russia invaded Ukraine at the direction of its President Vladimir Putin, the orders reportedly led to atrocities committed by his troops.

Russia’s unrelenting attacks against Ukraine, described by Putin as a “special military operation,” has shelled hospitalsschoolsresidential areas, churches, nuclear power plantsoil refineries, a theater used as a shelter, cultural sites and even a train transporting food for World Central Kitchen. Russia’s military attacks on civilians in Ukraine have led to reports of alleged war crimes committed by invading soldiers for rapingtorturing, kidnapping and executing people who were trapped in territory seized by Putin’s army.

Putin’s perilous policies for his countrymen triggered economic sanctions enacted by many nations and companies that have objected to the former KGB agent orchestrating the invasion of his neighboring nation. The purpose of the sanctions is to restore peace in Ukraine, a country that prior to the attack on its sovereign borders and people, combined with Russia to produce 57% of sunflower seed, safflower and cotton seed oil, 26% of wheat and Meslin and 24% of barley worldwide.

Shipping Agreement Should Aid Four Fertilizer Income Investments to Purchase

Russia’s invasion of Ukraine by land, air and sea caused the European Union, the United States, Japan, South Korea, Australia and others to limit the attacking country’s exports and financial transactions. The nearly six-month transportation delay caused by Russia’s blockade of Black Sea ports is far from solved by the agreement, since the first cargo ship to carry crops from the Ukraine lost its initial buyer and is floating in the Mediterranean Sea seeking a new purchaser and destination for its load.

There also is an “incredible amount of uncertainty” with commodity prices, inflation, interest rates, energy prices and geopolitical situations that could flare up at any time, seasoned Wall Street veteran Bryan Perry warned subscribers of his Cash Machine investment newsletter. As these metrics become clear, Perry, who tracks commodity trading opportunities closely as the head of the Quick Income Trader, Breakout Options Alert, Premium Income Pro and Hi-Tech Trader advisory services, wrote that he would weigh adding to the number of holdings in his newsletter that offers a blended yield of 9%.

Paul Dykewicz interviews Bryan Perry, leader of the Cash Machine newsletter.

An all-time high of up to 49 million people in 46 countries could be at risk of falling into famine or famine-like conditions, a recent UN report warned. The needs are extreme in 20 “hunger hotspots” worldwide where heightened food prices, COVID-related conditions and violent conflicts are pushing populations toward hunger or starvation, according to the United States Institute of Peace.

In 2021, most of the 140 million people suffering acute hunger around the world lived in just 10 countries: Afghanistan, the Democratic Republic of the Congo (DRC), Ethiopia, Haiti, Nigeria, Pakistan, South Sudan, Sudan, Syria and Yemen. Now, 276 million people are struggling to find food, the UN reported.

Four Fertilizer Income Investments to Purchase Amid Alleged ‘War Crimes’

The United Nations General Assembly in New York held a rare emergency session on March 2 that voted to demand an immediate end to Russia’s infiltration of Ukraine. The UN motion, supported by 141 countries in the 193-member body, called for Russia to “immediately, completely and unconditionally withdraw all of its military forces from the territory of Ukraine.” 

Another 35 nations abstained and only Russia, its invasion partner Belarus, North Korea, Eritrea and Syria voted no. Russia has shown no indication of pulling back from Ukraine. Instead, Putin and his comrades have talked about trying to push their invasion beyond the borders of Ukraine to other Central European countries, such as Poland.

“The territorial integrity and sovereignty of Ukraine must be respected in line with the UN Charter,” cautioned UN Secretary-General Antonio Guterres, following the vote.

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Perry Picks Three of Four Fertilizer Income Investments to Purchase

Efforts to sway Putin to stop shelling Kyiv and other key cities in Ukraine, as well as resolve differences nonviolently through negotiations, have not succeeded. Despite heavy sanctions and “financial chokeholds” on Russia’s banking system, Putin and the Kremlin seem intent on taking full control of Ukraine and maintaining it as a non-NATO buffer nation between Russia and Europe, Perry said.

“The global reaction is one of shock and amazement that such nation-on-nation aggression could still take place in this day and age, but Putin’s incursions into Georgia, Crimea and Belarus show a clear pattern of his desire to rebuild Russia back to the pre-1991 split-up of the Soviet Union,” Perry wrote to his Cash Machine subscribers. “He is a man of tyrannical character and rules though fear and violence. Sadly, the current generation of young Ukrainians and Russians are bewildered this is all happening like something out of the 1979-1985 cold war when Russia invaded Afghanistan under sharp criticism from the West.”

Against this surreal backdrop, it is uncertain how the Ukraine situation will end, as well as the impact on global supply chains, since Russia remains a global powerhouse in commodities, Perry cautioned.

Four Fertilizer Income Investments to Purchase Could Profit from Putin’s Policies

Fertilizer manufacturers appear likely to profit from Russia’s attack against Ukraine, Perry said. While there may be “demand destruction” in the energy sector, there won’t be in the global food supply, he advised his Cash Machine subscribers.

Wheat, corn and soybean prices jumped since the full revelation of the attack on Ukraine by Russia, Perry continued. One of the big winners from pure demand and sanctions will be CF Industries Holdings, Inc. (NYSE: CF), a dividend-paying manufacturer and distributor of agricultural fertilizers, including ammonia.

However, the company, based in Deerfield, Illinois, a suburb of Chicago, also is facing increased distribution costs, particularly for transportation. Those extra expenses likely will be passed along to customers.

In addition, the expense of producing nitrogen fertilizers is highly dependent on the cost of natural gas, which is the principal raw material and primary fuel source used in ammonia production at the company’s manufacturing facilities. For many global producers, more than 70% of the total cost to produce ammonia is based on the expense of natural gas.

The cost of natural gas varies significantly between geographic locations. European customers may see their financial burden grow, since natural gas prices have been surging there and Russia has cut the export of that commodity in an apparent attempt to squeeze energy-needy nations into weakening their opposition to Putin’s invasion of Ukraine.

Chart courtesy of www.stockcharts.com

Another fan of CF Industries Holdings is Mark Skousen, PhD, who recently recommended it profitably in his Five Star Trader advisory service. Skousen follows commodities closely as the head of the Forecasts & Strategies investment newsletter, as well as additional trading services such as Fast Money Alert, Home Run Trader, Five Star Trader and TNT Trader.

Mark Skousen, a descendent of Benjamin Franklin and head of Forecasts & Strategies, meets with Paul Dykewicz.

Four Fertilizer Income Investments to Purchase Feature Nutrien

Nutrien Ltd. (NYSE: NTR), a dividend-paying Canadian fertilizer company based in Saskatoon, Saskatchewan, is the largest producer of potash and the third-largest maker of nitrogen fertilizer in the world. Its management said Nutrien will boost potash production if supply problems worsen in Russia and Belarus, the world’s second- and third-largest potash-producing countries, respectively, after Canada.

The economic sanctions imposed by the United States, the European Union and other countries against Russia may hurt the country’s export of natural gas, potash and nitrogen. Belarus, a puppet state of Russia, has joined the invasion of Ukraine and also must adjust to economic sanctions that have restricted its potash exports.

The decision by Putin to wage war against Ukraine further has raised concerns about wheat, corn and vegetable oil supply problems in the Black Sea region. The result has been increased world prices for such agricultural products.

Chart courtesy of www.stockcharts.com

CVR Partners LP Earns Berth Among Four Fertilizer Income Investments to Purchase

CVR Partners LP (NYSE: UAN), of Sugar Land, Texas, manufactures and provides nitrogen fertilizer products as a subsidiary of Coffeyville Resources, a unit of CVR Energy Inc. UAN, another recommendation of Perry, offers a 16.4% dividend yield that should entice income seekers.

The company’s nitrogen fertilizer manufacturing facility includes a 1,300-ton-per-day ammonia unit, a 3,000 ton-per-day urea ammonium nitrate (UAN) unit and a dual-train gasifier complex that can produce 89 million standard cubic feet of hydrogen per day. The UAN solution, produced by combining urea, nitric acid and ammonia, is a liquid fertilizer product with a nitrogen content that typically ranges from 28-32%.

UAN can be applied more uniformly than non-liquid forms of fertilizer. The solution also can be mixed with herbicides, pesticides and other nutrients to let farmers cut costs by applying several materials simultaneously rather than using separate applications.

Chart courtesy of www.stockcharts.com

Mosaic Rounds out Four Fertilizer Income Investments to Purchase

Mosaic Company (NYSE: MOS), a dividend-paying Fortune 500 company headquartered in Tampa, Florida, mines phosphate, potash and urea. The largest U.S. producer of potash and phosphate fertilizer, Mosaic operates through segments such as international distribution and Mosaic Fertilizantes.

Russia is a big producer of potash, a key crop nutrient that is used in agricultural production. Robust growth in the company’s year-over-year earnings per share (EPS) and rising prices for fertilizer from constricted supply out of Russia led to a surge in the value of MOS call options that recently were recommended by Jim Woods in his High Velocity Options trading service.

Paul Dykewicz meets with stock picker Jim Woods, head of the Successful Investing and Intelligence Report newsletters.

Woods recommended in March that his in High Velocity Options that his subscribers take profits of more than 150% in just one week. That triple-digit-percentage gain exemplifies how options can be a huge money maker.

Chart courtesy of www.stockcharts.com

Pension Fund Chair Champions Agricultural Fund

Despite the evils of war, investors can profit from the jump in agriculture prices through the futures markets. Instead of buying futures directly, investors could invest in diversified agricultural commodities through Invesco DB Agriculture (DBA), a non-dividend-paying exchange-traded fund, said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter.

Chart courtesy of www.stockcharts.com

Ukraine’s democratically elected President Volodymyr Zelensky has been trying to inspire his countrymen since Russia’s Feb. 24 invasion to repel the attackers of their nation courageously. He also has successfully obtained guns, advanced weapons and ammunition for defenders of his country’s freedom by reaching out to their allies around the world. The cost in life and limb has been high for the Ukrainians, along with the Russians, whose troops of consisted of many conscripts, who in some cases have objected to fighting against their country’s neighbors.  

While many commodities prices have already increased substantially, there may still be more such pressure in the months ahead with fertilizer due to what is happening in Ukraine. Oil, natural gas, grains and some metals may incur further price hikes.

U.S. COVID Deaths Near 1.037 Million

COVID-19 cases and deaths have interfered with supply chains for products such as fertilizer. As a result, investors should monitor the latest trends.

U.S. COVID-19 deaths climbed for the fourth consecutive week by more than 3,000 to 1,036,589 as of Aug. 12, according to Johns Hopkins University. The past week showed the biggest rise in the last month with more than 4,000 deaths. Cases in the United States rose more than 750,000 in the past week to reach 92,781,519, showing a slight decline in the rate of increase that had risen about 900,000 for the prior three weeks. America still holds the dreaded distinction as the country with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths in the last week surged more than 8,300, totaling 6,432,134 as of Aug. 12, according to Johns Hopkins. Global COVID-19 cases rose more than 7.0 million in the past week, reaching 588,916,540 by Aug. 10.

Roughly 78.9% of the U.S. population, or 261,981,612, have received at least one dose of a COVID-19 vaccine, as of Aug. 10, the CDC reported. Fully vaccinated people total 223,457,170, or 67.3%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 107.9 million people.

The four fertilizer income investments to purchase offer an avenue to profit from Russia’s continued assault on Ukraine’s pre-war economic role as an agricultural power. Despite the highest inflation in 42 years, a second consecutive 0.75% Fed rate hike and other rate increases that may follow, the outlook for the four fertilizer income investments to purchase is up as Russia keeps attacking Ukraine and its grain supply, while not yet proving it will allow the transport of food and fertilizer at the levels needed to meet global demand.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Three aerospace income investments to purchase amid hostilities from Russia and China provide a way to provide potentially strong returns for backing products and services that remain in demand. 

The three aerospace income investments to purchase as Russia’s President Vladimir Putin continues to attack both civilian and military targets, damaging the world’s grain supply, also should benefit from China’s increasingly aggressive acts that in the past few days involved military drills near Taiwan and flying drones close to Japan on Friday, Aug. 5, boosting tensions since U.S. House Speaker Nancy Pelosi visiting the island, as one of several stops in Asia.

Since Putin ordered the invasion of on Ukraine Feb. 24, niche opportunities have been observed within a sector that tends to retain demand, even when inflation rises, and the economy weakens. The three aerospace income investments to purchase are among the equities that can withstand threatening words from China’s leaders that characterized frail, 82-year-old Pelosi’s visit to Taiwan as America playing with fire and putting it in enough peril to “perish by it.”

Three Aerospace Income Investments to Purchase Are Aided by Bipartisan Support

Democrats and Republicans clash on most issues these days but they have been united in the defense of America and freedom around the world by supporting increased funding toward aerospace programs to protect against threating actions by Russia, China, North Korea, Iran and others. Aerospace companies traditionally have withstood inflationary pressures, slow economic growth, rising interest rates and the uncertainty of election years such as this one, said Ron Epstein, the aerospace and defense analyst at BofA Global Research.

The second-quarter 2022 reporting period showed 60% of S&P 500 companies announcing results, with 73% of them delivering a positive earnings per share (EPS) surprise and 66% offering a rosy revenue result. In addition, the blended earnings growth rate in second-quarter 2022 reached 6.0% for the S&P 500.

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“By no means is this an all-clear sign because the market has managed a strong relief rally,” wrote Bryan Perry, leader of the Premium Income Pro advisory service, in his weekly update. “The bearish camp owned the narrative and now there is a more positive tone taking shape that is built on the notion that a deep recession will be avoided and good companies will grow, albeit at a slower pace.”

Paul Dykewicz interviews Bryan Perry, leader of Premium Income Pro.

Due to heightened bullish sentiment, confidence is rising that the market can keep advancing and consolidate while investors monitor new economic data to assess the China’s threatening actions, the impact of inflation, the strong dollar, the inverted yield curve and Russia’s effect on commodities as Putin keeps attacking Ukraine, opined Perry, who also leads the Cash Machine investment newsletter. Perry, who further helms the Quick Income Trader, Breakout Options Alert and High Tech Trader advisory services, wrote to his subscribers that for the first time in many months the proverbial glass is looking more than half-full for the U.S. equity market.

Penson Fund Chief Chooses ETF as One of Three Aerospace Income Investments to Purchase

An investor who wants a diversified way to tap into the aerospace sector should weigh an exchange-traded fund (ETF), said Bob Carlson, who leads the Retirement Watch investment newsletter. The ETF with the most consistent returns is dividend-paying Aerospace & Defense (PPA), he added.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

The fund is designed to follow the SPADE Defense Index, which is focused on companies that are involved with aerospace and space. Both are regarded as important to the defense sector.

Aerospace and Defense Fund Finds Place Among Three Aerospace Investments to Purchase  

Top holdings are Boeing (NYSE: BA), Raytheon (NYSE: RTX), General Dynamics (NYSE: GD), Northrup Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT). Boeing is one of the world’s largest aircraft manufacturers, but it has yet to recover completely from the fallout of two 737 MAX aircraft crashes in 2018 and 2019 that killed a combined 346 people. 

An encouraging sign is Delta Air Lines (NYSE: DAL) announcing in July that it would buy 100 Boeing 737 MAX 10 jets worth about $13.5 billion at list price, with an option to purchase an additional 30 of the aircraft. At the Farnborough Airshow in London, Qatar Airways, a state-owned flag carrier of Qatar, announced on July 21 the purchase of 25 Boeing 737 MAX 10 airliners. Even though Boeing still is awaiting regulatory approval to fly the new-generation Boeing 737 MAX aircraft, the manufacturer has amassed orders for more than 1,000 of the planes.

Chart courtesy of www.stockcharts.com

Money Manager Likes Leidos as One of Three Aerospace Income Investments to Purchase

Leidos Holdings (NYSE: LDOS), a Reason, Virginia-based science and technology company that serves civil, aviation, defense health and intelligence industries, still may be known by some people by its former name of Science Applications International Corporation (SAIC). Leidos merged with Lockheed Martin’s (NYSE: LMT) information technology (IT) sector, Information Systems & Global Solutions, in August 2016, to form the defense industry’s biggest IT services provider. 

The merger became one of the largest transactions in the aerospace and defense sector, positioning Leidos to work extensively with the U.S. Department of Defense, the U.S. Department of Homeland Security and the U.S. intelligence community, including the National Security Agency (NSA).

BofA placed a $125 price objective on the stock and supported it by stating the value is in line with defense prime contractors, as strong U.S. national security demand for innovative technologies and solutions and solid free cash flow generation is offset by a lumpy award environment, supply chain challenges in the near term, pressure on pricing and mounting concerns about labor inflation.

Within the defense services industry, Leidos is the largest and most diversified company, said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management. The company provides scientific, engineering and technical services to government and highly regulated industries.

Michelle Connell, of Dallas-based Portia Capital Management

Three Aerospace Income Investments to Purchase Serve Defense Departments

The services of Leidos focus on surveillance, cybersecurity, logistics and energy. The company’s customers include the U.S. Department of Defense and the British Ministry of Defense.

With a market capitalization of more than $13 billion, Leidos Holdings is a mid-cap stock, Connell said. However, combining growth with strong fundamentals and cash flow should qualify the company as a Growth at a Reasonable Price Services (GARP) stock that focuses on surveillance, cybersecurity, logistics and energy.

Leidos reported strong results on Aug. 2 that beat revenue and earnings expectations. However, the stock slid 4% after it reported earnings, possibly due to lighter-than-expected bookings of future services, she added.

The recent pullback in the company’s share price enhances its merit for potential new shareholders, Connell said. The stock has an upside of about 15% during the next 12 months and offers a dividend yield of 1.4%.

Chart courtesy of www.stockcharts.com

Three Aerospace Income Investments to Purchase Include Hexcel

Hexcel Corporation (NYSE: HXL) is a dividend-paying Stamford, Connecticut-based manufacturer of advanced composite materials for commercial aerospace, space, defense and industrial markets. Its outlook should be aided by enhanced manufacturing orders for commercial aircraft, especially more fuel-efficient commercial jetliners that may be ordered by customers wary about high oil prices.

BofA gave the stock a price objective of $65, partly based on accelerating commercial recovery. Potential upside to the price target could occur if Airbus A350, A32neo, and Boeing 737 MAX production rates continue to ramp up as expected and 787 deliveries resume, according to BofA.

Plus, HXL may trade at a higher premium to the market compared to BofA’s estimates, the investment firm wrote. A jump in oil prices also could lift demand for and provide upside to estimates in the medium term, BofA added.

Risks to underperform include the majority of sales are original equipment manufacturer (OEM) and there is little aftermarket, which may prove problematic if the civil aircraft cycle turns dramatically. BofA cautioned. Hexcel also could be materially impacted if serious complications arise from new platforms like the Boeing 787 and the Airbus A350. Unexpected cancellations to programs in both commercial and military could materially impact HXL. Any problems with execution, particularly as capacity expands, further could impact results.

Chart courtesy of www.stockcharts.com

Non-Dividend-paying TransDigm Offers an Alternative to Aerospace Income Investments

TransDigm Group Inc. (NYSE: TDG), a Cleveland-based global producer, designer and supplier of highly engineered aerospace components, systems and subsystems for use on almost all commercial and military aircraft, is another buy recommendation of BofA. However, it currently does not offer a dividend.

On May 25, TransDigm Group announced that it had completed its acquisition of Canada’s DART Aerospace, a Montreal, Quebec-based portfolio company of Greenbriar Equity Group, L.P., for roughly $360 million. TransDigm financed the acquisition initially with cash on hand. 

DART is a provider of highly engineered, unique helicopter mission equipment solutions that mainly service civilian aircraft. The company is expected to generate approximately $100 million in pro forma revenues for the calendar year ending December 31, 2022. Approximately 95% of DART’s revenues are derived from proprietary products and about 80% of its revenues come from the aftermarket. The products are commonly used in major commercial rotary-wing platforms, as well as select applications for defense and safety services.

BofA placed a $720 price objective on the stock, partly based on TransDigm’s strong aftermarket positioning, robust margin performance and solid cash generation. Risks to reaching that target include increased oil prices slowing air traffic growth and therefore aircraft demand to cause a downturn in commercial aviation, BofA wrote.

“However, if the commercial aerospace and business aviation jet recoveries are better than we are forecasting, earnings could fare better than our projections and the stock could perform better,” BofA wrote in a research note. “If margins fare better than we are forecasting, there could also be upside potential to our valuation.”

Chart courtesy of www.stockcharts.com

U.S. COVID Deaths Top 1.03 Million

Aerospace production and sales are affected by rising COVID-19 cases and deaths that can restrain demand. As a result, investors should pay attention to the latest trends.

U.S. COVID-19 deaths climbed for the third consecutive week by more than 3,000 to 1,030,997, as of Aug. 3, according to Johns Hopkins University. Cases in the United States jumped by almost 900,000 for the third straight week to 91,589,488. America still holds the undesirable distinction as the country with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths jumped by more than 16,513, up from the prior week’s 14,600, but down from 19,000 in the week before that one, totaling 6,405,538 as of Aug. 3, according to Johns Hopkins. Global COVID-19 cases rose 7.06 million, down from 7.2 million during the prior week and 7.5 million the week earlier, hitting 579,463,990 by Aug. 3.

Roughly 78.8% of the U.S. population, or 261,654,61, have received at least one dose of a COVID-19 vaccine, as of July 27, the CDC reported. Fully vaccinated people total 223,245,563, or 67.2%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 107.9 million people, up 400,000 in the last week.

The three aerospace income investments to purchase offer a defensive way to invest due the rising demand for goods and services in the industry. Despite the highest inflation in 42 years, a second consecutive 0.75% Fed rate hike and other rate increases that may follow to follow, the trajectory of the three aerospace income investments to purchase is ascending amid Russia’s attacks on Ukraine and China’s sharply military provocations after an octogenarian leader of Congress stopped in Taiwan during her travels through Asia.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for multiple-book pricing.

Four aircraft income investments to purchase as tailwinds strengthen include two industry funds, an aerospace stock and a commercial jet leasing company.

The four aircraft income investments to purchase emerge at a time when the aerospace sector seems to be at an existential crossroads in which its purpose and value are transitioning to a business model and technology aimed at operating in a net-zero-carbon-emission world. The challenges of that change are immense, especially in Europe where much attention and energy are going to the industry’s adoption of a climate-sensitive culture.

The industry increasingly now is expected to show air travel can be done in a sustainable way. It is up to the aircraft manufacturers and suppliers to identify how sustainable flying can be achieved and when it may be possible.

As the aircraft industry recovers from reduced demand due to COVID-19, production rates for building plane are ramping up, according to BofA Global Research. Globally, narrowbody flights are still down by about 30%, while widebody flights are about 45% below normal, the investment firm wrote in a recent research note.

Four Aircraft Income Investments to Purchase Feature Two Industry Funds

Despite aircraft production rates returning toward pre-COVID-19 levels, they have further to go. Indeed, the ramp-up of production remains challenging.

Nonetheless, demand for goods and services is healthy in airlines, lodging, trucking and railroad companies, opined Bryan Perry, who tracks virtually all industries closely as the head of the Cash Machine investment newsletter, and the Premium Income Pro, Quick Income Trader, Breakout Options Alert and High Tech Trader advisory services. In fact, 10 of 11 sectors traded up on two consecutive days during the past week, signaling that investors may want to start selling into rallies rather than purchasing equities on pullbacks, he added.

Paul Dykewicz interviews Bryan Perry at a MoneyShow conference.

However, inflationary forces, global logistical bottlenecks, COVID-19 lockdowns and a strong U.S. dollar create headwinds for many companies, Perry continued. He wrote in his Premium Income Pro service this week that the Fed Watch Tool, which places odds on the U.S. central bank’s next move, shows a 75% probability of a three-quarter point rise and a 25% chance of a 1.00% rate hike. Those predicting a three-quarter point rise were correct when the Fed announced a rate hike of that level on Wednesday, July 27.

Such Fed rate increases are aimed at reducing inflation, but the Consumer Price Index recently reached a 42-year high of 9.1%, so multiple rate hikes in the months ahead may be required to achieve the desired results. The Fed’s initial view that inflation in previous months has “transitory” proven to be misguided.

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Pension Fund Chief Chooses Two of Four Aircraft Income Investments to Purchase as Tailwinds Strengthen

An investor interested in a diversified way to invest in this sector should consider an exchange-traded fund (ETF), said Bob Carlson, who heads the Retirement Watch investment newsletter. The ETF with the most consistent returns is Invesco Aerospace & Defense (PPA).

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

The fund seeks to follow the SPADE Defense Index, which is focused on companies that are involved with aerospace and space operations considered important to the defense sector.

The fund had a 7.09% return in 2021 and is down only 0.34% so far in 2022. It owns 55 stocks with 53% of the fund in the 10 largest positions.

Top holdings are Boeing (NYSE: BA), Raytheon (NYSE: RTX), General Dynamics (NYSE: GD), Northrup Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT). Boeing is one of the world’s largest aircraft manufacturers, but it has yet to fully recover from the fallout of two 737 MAX aircraft crashes in 2018 and 2019 that killed a combined 346 people.

However, Delta Air Lines (NYSE: DAL) announced earlier this month that it would buy 100 Boeing 737 MAX 10 jets worth about $13.5 billion at list price with the option to purchase an additional 30 of the aircraft. At the Farnborough Airshow in London, Qatar Airways, a state-owned flag carrier of Qatar, announced on July 21 the purchase of 25 Boeing 737 MAX 10 airliners. Even though Boeing still is awaiting regulatory approval to fly the new-generation Boeing 737 MAX 10 aircraft, the manufacturer has amassed orders for more than 1,000 of them.

Chart courtesy of www.stockcharts.com

ITA Also Is Among the Four Aircraft Income Investments to Purchase

Another aircraft income investment to consider is iShares US Aerospace and Defense (BATS: ITA), Carlson counseled. The fund seeks to follow the Dow Jones U.S. Select Aerospace & Defense Index.

ITA rose 9.39% in 2021 and is down 3.38% so far in 2022. The fund’s top holdings consist of Raytheon, Lockheed Martin, Boeing, Northrop Grumman and Howmet Aerospace (NYSE: HWM).

Chart courtesy of www.stockcharts.com

The least well known of that group of companies is Howmet Aerospace, but it is on the investment radar screen of Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management.

Howmet Aerospace Joins List of Four Aircraft Income Investments to Purchase

Pittsburgh-based Howmet Aerospace is a mid-cap growth stock that manufactures products used in commercial transportation, aerospace and other industries. In the next 10 years, the world’s commercial air fleet will go from 25,000 to 35,000 planes to achieve an average annual growth rate of approximately 8%, Connell said.

“HWM will benefit from this growth,” Connell counseled.

Chart courtesy of www.stockcharts.com

Russia has been a key source of titanium products that are used in aerospace. Since Russia’s invasion of Ukraine on Feb. 24 and continued military action in the country, the United States, the European Union, Great Britain, Canada, Japan, Australia and other nations have imposed economic sanctions in hopes of pressuring Russia’s President Vladimir Putin to halt his attacks.

Howmet Aerospace is one of three suppliers outside of Russia that can step in to fill the void as a titanium supplier, Connell said. In addition, the company’s short-term supply chain issues appear to be resolved, she added.

Even though the invasion of Ukraine as a sovereign country violates international law, Putin has called it a “special military operation” and has dismissed widespread reports of war crimes perpetrated by the troops he ordered into the neighboring country. Documented news reports have found that Russia’s military has shelled hospitals, schools, residential areas, churches, nuclear power plants, oil refineries, a crowded shopping mall and a theater used as a shelter, aside from raping, torturing and executing Ukrainian civilians.

Russia’s Missiles Hit Odesa’s Port Facilities After Agreement to End Grain Blockade

Russia also has been accused of stealing Ukraine’s grain and preventing it from going to Africa and other places where 140 million people face famine conditions. Even though Turkey recently brokered an agreement with the United Nations and Ukraine for Russia to allow safe passage of ships in and out of three Ukrainian Black Sea ports in the Odesa region, it appeared to be violated by Putin’s forces within 24 hours.

Russia carried out a missile strike on port facilities in Odesa, claiming it was targeting military sites rather than grain shipments at those ports that was supposed to ease famine conditions elsewhere in the world and bring much-needed revenue to Ukraine. With ports still blockaded and many Ukrainian airports destroyed, there only are peril-filled routes along the ground for grain to be moved haltingly and in the crosshairs of shelling by Russia’s troops.

Howmet Aerospace not only is poised to benefit from Russia’s decision to continue attacking Ukraine rather than keep its previous trading partners by adhering to international law and withdrawing its troops, but the company has “great financials,” Connell said. The aerospace company’s earnings per share are expected to meet or beat 25% or more during 2022 and 2023, she added.

Another huge plus is that Howmet Aerospace has $500 million in cash, as well as a $1 billion credit line that doesn’t expire until 2026, Connell said. The company also can retain the financing at its current low interest rate, she added.

Wall Street analysts foresee a potential 20% upside in the stock, but its fundamentals may warrant a 30% upside, Connell said. With the company expected to report its earnings on Aug. 4, Connell said it may be “worth establishing” a position beforehand.

Air Lease Corporation (AL) Is Another of the Four Aircraft Income Investments to Purchase

Air Lease Corporation (NYSE: AL), a Los Angeles-based aircraft leasing company, showcased its global reach during the 2022 Farnborough International Airshow in England when it announced on July 18 that it arranged for long-term lease placements for six new Airbus A220-300 aircraft with TAAG Angola Airlines. The Airbus aircraft are scheduled for delivery to the airline starting in 2023 through 2024.

The lease placement for six new Airbus A220s with TAAG is the first to introduce Airbus aircraft to the airline, said Steven Udvar-Házy, executive chairman of Air Lease Corporation. The capabilities of the A220-300 will greatly enhance TAAG’s operational efficiency and expand its route network with the most modern, fuel-efficient aircraft, Udvar-Házy added.

“The A220-300 with its fuel efficiency, range and improved operating economics will progressively replace TAAG’s Boeing 737-700 fleet and allow the airline to optimize and broaden its flight schedule coverage and destinations from Luanda,” said Kishore Korde, executive vice president of Air Lease Corporation.

“We are alive, back in business, breaching with the past to achieve greater results and becoming a reference for Africa,” said Eduardo Fairen, CEO of TAAG. “This partnership emphasizes our commitment to grow and further improve our credibility among international stakeholders while creating a new value proposition for our passengers.”

Air Lease, rated a buy recommendation by BofA, announced long-term lease placements for three new Airbus A321neo aircraft with LATAM Airlines on June 1. The aircraft are scheduled for delivery to LATAM in summer and fall of 2023 from ALC’s orderbook with Airbus.

BoA Sets $55 Price Target on Air Lease as One of Four Aircraft Income Investments to Purchase

BofA set a price target of $55 on Air Lease, using a 0.9x price-to-book value on its 2023 estimate of AL’s book value. The percentage of net book value at risk should disappear by 2023 due to improving market conditions as commercial traffic recovers from pre-pandemic levels by 2023 and riskier assets are sold as they come off lease.

Potential risks to BofA’s price objective for Air Lease include global economic weakness, fuel price spikes, any inability to access capital markets at attractive terms, terrorism and geopolitical events. Additional risks entail a downturn in aircraft values due to rising supply, flattening yield curve, continued sharp appreciation of the U.S. dollar, changes in equity risk premiums and overall stock market and financial company valuations.

The price target could be beaten, BofA forecasts, if economic growth is stronger than expected, recovery of air travel tops current estimates, fuel prices fall, the U.S. dollar weakens and credit can be obtained at modest rates.

Chart courtesy of www.stockcharts.com

U.S. COVID Deaths Near 1.028 Million

Aircraft stocks are closely affected by COVID-19 cases, deaths and lockdowns. As a result, it behooves investors to understand the latest trends.

U.S. COVID-19 deaths climbed for the second consecutive week by more than 3,000 to total 1,027,909, as of July 27, according to Johns Hopkins University. Cases in the United States jumped by nearly 900,000 for the second straight week to 90,735,621. America still holds the undesirable distinction as the country with the largest number of COVID-19 deaths and cases.

Worldwide COVID-19 deaths jumped by more than 14,600, down from 19,000, during the past week to reach 6,389,025 as of July 27, according to Johns Hopkins. Global COVID-19 cases rose more than 7.2 million during the last week, compared to 7.5 million the previous week, to hit 572,403,044 by July 27.

Roughly 78.7% of the U.S. population, or 261,204,035, have received at least one dose of a COVID-19 vaccine, as of July 20, the CDC reported. Fully vaccinated people total 222,950,194, or 67.2%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 107.5 million people, up 500,000 in the last week.

The four aircraft investments to purchase as tailwinds strengthen position those who buy shares to benefit. With the highest inflation in 42 years, a second consecutive Fed rate hike of 0.75% and other rate increases likely to follow, the flight of the four aircraft investments to purchase taking shape despite supply chain snags and Russia’s unrelenting attacks on Ukraine.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

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