Three dividend-paying uranium investments appear promising amid a trio of economic indicators that show the climate-conscious provisions of the Inflation Reduction Act championed by the Biden administration are failing to live up to its name one year after it was signed into law during August 2022.

EWTN News Anchor Tracy Sabol interviews Paul Dykewicz about the economy.

President Biden has been trumpeting his economic policies to spark flagging support about his leadership amid sagging popularity in political polls but recent reports about inflation, mortgage rates and prices are showing little relief for budget-strapped consumers. I side-stepped partisan politics when commenting Friday, Aug. 18, on EWTN to focus on how the data did not back President Biden’s boasts about the benefits of the Inflation Reduction Act.

President Biden signed the Inflation Reduction Act into law but, despite giving it a name that suggests it will battle inflation, prices instead have climbed for housing, food and many other expenses that fall especially heavily upon those of modest means who may not have a fixed-rate mortgage. One indicator of the legislation’s true intent may have been signaled about a year ago on August 16, 2022, when the White House announced the new law one of the “most significant” acts Congress has taken on clean energy and climate change in the nation’s history.

Three Dividend-paying Uranium Investments Are Powering Ahead

In a statement released by the White House on that date, it claimed President Biden redefined American leadership to confront an “existential threat” to the climate and set forth a new era of innovation and ingenuity to cut consumer costs and drive the global clean energy economy forward. However, the latest Consumer Price Index clearly shows prices still rising.

In July, the Consumer Price Index (CPI) for All Urban Consumers increased 0.2%, seasonally adjusted, and rose 3.2% over the last 12 months, when not seasonally adjusted. The index for all items — less food and energy — increased 0.2% in July when seasonally adjusted, up 4.7% for the past year when not seasonally adjusted, according to the U.S. Bureau of Labor Statistics. The CPI measures average change over time for the prices paid by urban consumers for a market basket of consumer goods and services.

“The Fed’s tight money policy is having its effect,” wrote Mark Skousen, Ph.D., in his latest Forecast & Strategies investment newsletter hotline. “Interest rates are rising sharply, with the yield on the benchmark 10-year Treasury topping 4.25%, the highest it has been in 15 years. And the 30-year mortgage rate is now over 7%.”

The most recent rates show 30-year mortgage rates now at or above 8%.

Mark Skousen, head of Forecasts Strategies and scion of Ben Franklin, talks to Paul Dykewicz.

Three Dividend-paying Uranium Investments Include URA

“We don’t want Treasury yields to collapse, as that’d signal a hard economic landing,” said Jim Woods, leader of the Intelligence Report investment newsletter. But a drift lower, especially in the 10-year Treasury Note, would help support the market multiple and make the argument for a 20X valuation (up from the current 19X) more viable.”

Investors will pay attention to Fed Chairman Powell’s comments about future interest rates, especially during speaking engagements such as this week’s Jackson Hole Economic Policy Symposium, Aug. 24-26.

One way for investors to pursue profits is through nuclear power equities, Skousen said. Nuclear fission is nearly 8,000 times more efficient at producing energy than traditional fossil fuels or even solar, water and wind power, he added.

The construction of average U.S. nuclear power plants required 40 metric tons of steel and 190 cubic meters of concrete per average megawatt of electricity generating capacity, Skousen commented. Compare that to a typical wind-energy system, which requires construction inputs of 460 metric tons of steel and 870 cubic meters of concrete, he added.

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Canada’s Cameco Corporation (NYSE: CCJ) pays a small dividend, but it also offers opportunity for capital appreciation as a clean energy stock. The company paid a dividend of $0.089 last Nov. 29. It does not offer much of a yield but many checking accounts don’t either. Cameco also may be able to raise its dividend in the future.

Skousen has recommended Cameco in the past but he currently likes a different stock with a lower price-to-earnings (P/E) ratio that is a current pick in his TNT Trader service. The latter stock is up more than 20% since he advised his subscribers to buy it in June 2023. That one does not pay a dividend but Skousen wrote to his TNT Trader subscribers this week that he still expects further gains ahead.

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“The Russian conflict is going to bolster the case for continuing nuclear energy output at current levels with existing facilities,” said Jim Woods, who heads the Successful Investing and Intelligence Report investment newsletters, as well as premium trading services such as High Velocity Options.

“There is also a good chance that several nations take additional steps to enhance their energy security using this established method,” Woods continued. “Those factors enhance the appeal of global stocks engaged in the discovery and production of nuclear components.”

Woods’ preferred vehicle to participate in this sector is the Global X Uranium ETF (NYSEARCA: URA). The goal of this diversified ETF is to provide investors access to a range of companies engaged in uranium mining and the production of nuclear components, including those in extraction, refining, exploration or manufacturing of equipment for the uranium and nuclear industries, he added.

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Plus, the stock paid a small dividend of $0.049 on December 29, 2022. Dividend payments never are guaranteed but it would not surprise me if another payout was provided by the company late this year, too.

Paul Dykewicz interviews Jim Woods, who heads Intelligence Report.

Three Dividend-paying Uranium Investments Climb as Clean Energy Gains Appeal

The White House guidebook for the Inflation Reduction Act provides a detailed overview of the clean energy and climate mitigation, agriculture, and conservation-related investment programs. It further identifies eligibility to apply for funding and for what activities. A quick glance at the guidebook shows an emphasis on government funding of projects, not ways to curb inflation, stem price increases and stop runaway mortgage rates.

Bob Carlson, a pension fund chairman who also heads the Retirement Watch investment newsletter, said he prefers to invest in uranium through iShares MSCI Global Metals and Mining Producers (PICK). Carlson drew my attention to the exchange-traded fund (ETF) last fall and it has advanced by double-digit percentages.

“I was attracted to this ETF even before the invasion of Ukraine,” Carlson told me. “The mining companies had gone through a long bear market. They worked to reduce debt and otherwise clean up their balance sheets. Their more efficient operations mean most of them can profit at relatively low prices for their commodities and will earn strong profits as prices rise.”

Retirement Watch leader Bob Carlson meets with Paul Dykewicz.

Michelle Connell, who heads Dallas-based Portia Capital Management, commented that she prefers to invest in PICK rather than individual uranium companies. One reason is most of the stocks held in PICK are profitable, while having positive revenue growth and book value. PICK also has shown superior long-term performance versus gold and silver ETFs by outperforming the precious metals on a total return basis for one year, three years and five years, Connell said.

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“Maybe this is a better way to hedge for inflation than a gold ETF,” Connell said.

One point of caution is that PICK is market-cap-weighted, with its top 10 stock holdings comprising more than 50% of the ETF’s portfolio, so underperformance by one of those key positions could crimp the fund’s returns, Connell continued.

Freeport-McMorran (NYSE: FCX), of Phoenix, Arizona, ranks near the top of the ETF’s biggest positions. The company owns copper mines worldwide. Copper is in short supply and is used in many manufacturing processes, including green technology and electric vehicles, Connell continued.

Michelle Connell heads Dallas-based Portia Capital Management,

Former Republican presidential candidate and media mogul Steve Forbes, who I interviewed last month at the FreedomFest conference, recently said the “green energy” projects funded by President Biden are “expensive” and “not good for the environment.” Especially for those who are skeptical of his views, you can click this video link to hear his reasoning.

Three Dividend-paying Uranium Investments Rise Along with Mortgage Rates

Mortgage rates in the United States are at a level not seen in over 20 years, a stark difference from a couple of years ago when families were refinancing to lock in low rates, according to a recent note from BofA Global Research. In the United States, refinancing rose to $2.6 trillion in 2020-2021 when the Fed lowered interest rates to zero. The number of U.S. homeowners without a mortgage today is near 40% and among those who aren’t so lucky, 85% are on a fixed-rate mortgage.

“For these households, the debt burden remains unchanged during a hiking cycle, only impacting those with either a floating rate mortgage or a home purchased after rates went up,” BofA wrote. “This makes the Fed’s policy tool somewhat of a blunt instrument, potentially requiring higher rates and/or holding rates higher for longer. However, the other side of the coin of a less powerful monetary policy is that consumer spending seems resilient on the back of strong employment and a tight housing market.”

Forbes accused the Biden administration of spending hundreds of billions of dollars on “schemes” to replace fossil fuels with renewable energy sources. For instance, Forbes said one wind turbine requires the use of 2,500 tons of concrete that goes 30 feet deep into the ground.

“Imagine trying to reclaim that land,” Forbes said.

Three Dividend-paying Uranium Investments Ascend as Wind Power Wanes

The wind turbine also requires 900 tons of steel and 45 tons of unrecyclable plastic, Forbes continued. To operate the wind turbine, it requires 700 gallons of costly synthetic lubricants that are vulnerable to spills since they must be replaced each year, he added.

Solar and wind farms need “gargantuan” amounts of land, Forbes said. For example, New York City occupies 205,000 acres of land, but it would require 2,000,000 acres of land to fuel the Big Apple solely with renewable energy, he explained.

A 100-megawatt gas-fired turbine is about the size of a residential house and would provide electricity for 75,000 homes, Forbes counseled. To give equivalent energy to the same number of homes, 20 wind turbines would occupy 10 square miles of land.

“Renewables are very expensive,” Forbes continued. “Cost overruns here are as common as they are at the Pentagon.”

Wind farms are “notorious bird killers,” degrade existing transmission lines and displace wildlife, Forbes warned. Plus, what should be done with the 1,000-pound batteries in electric vehicles that require replacement with no recycling of the worn-out ones? he asked rhetorically.

Renewables also require an immense amount of mining for minerals. To replace fossil fuels, a 40-fold increase would be required in lithium, Forbes said.

These matters warrant substantive discussion and analysis, Forbes advised. Without it, the result will be bad environmental results and record-breaking waste of federal money, he added.

The data show that there is far more to fighting inflation than coming up with a name to slap on a new federal law. High inflation, rising mortgage rates, increasing prices and indicate that Biden’s policies need revamping to deliver what he has been promising but not providing. Factor in the rising political risk due to Russia’s unrelenting war in Ukraine, a formidable counteroffensive and an apparent assassination of Wagner mercenary leader Yevgeny Prigozhin in a plane crash, investors may like the idea of charging up their returns with uranium.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul 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 uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.

Four dividend-paying defense stocks offer refuge amid Russia’s raging war against the Ukraine that has led Western nations to provide military hardware to repeal the ongoing invasion of a sovereign nation.

The four dividend-paying defense stocks to consider purchasing amid persistent attacks of residential areas in Ukraine are finding increased demand for their products as many countries need to replace missile defense systems, tanks, various weapons, ammunition, drones and other military equipment that been sent to Ukraine in its effort to rebuff the invasion ordered by Russia’s President Vladimir Putin. Any initial thoughts that the onslaught against Ukraine that began in February 2022 would produce a quick victory for Russia have proven badly flawed, with both sides using sophisticated and expensive weaponry in fierce and bloody battles against each other.

Political risk is rising as Russia’s ruble has fallen in value to less than 100 to one U.S. dollar. The result is that Russia’s currency has sunk in value to less than a penny.

To stop the ruble’s retreat, the governing board of Russia’s central bank held an emergency meeting to boost interest rates by 3.5% on Tuesday, Aug. 15. That move raised the interest rate to 12%, as the central bank tries to prop up the ruble that has been devalued by economic sanctions from the United States, the European Union, Canada, Japan and many other countries.

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Russia is further isolating itself diplomatically with the brazen killing of Ukrainian civilians who have no role in the war other than becoming victims. Street musicians Svitlana Siemieikina, 18, and Kristina Spitsyna, 21, were killed by a Russian airstrike on a residential community in Zaporizhzhia last week. Seven civilians, including a family of four with a 12-year-old boy and a 23-day-old baby girl, were killed when Russian forces shelled Ukraine’s southern Kherson region on Sunday, Aug. 13, the country’s Internal Affairs Ministry announced.

Four Dividend-paying Defense Stocks to Consider: General Dynamics (NYSE: GD)

General Dynamics, a global aerospace and defense company based in Reston, Virginia, is a “buy” recommendation of BofA Global Research. The stock also is a favorite of seasoned stock picker Jim Woods in his monthly Intelligence Report investment newsletter. The company produces combat vehicles, nuclear-powered submarines and communications systems to provide safety and security.

Paul Dykewicz interviews former Army paratrooper Jim Woods, who heads Intelligence Report.

Plus, the company’s defense program align with military’s land and sea priorities, coupled with the company’s Gulfstream business jet manufacturing segment, seeking to spur near-term and medium-term organic growth. General Dynamics also has a strong balance sheet and solid cash generation, aiding dividend growth and share repurchases.

BofA set a price objective of $325 on General Dynamics, noting it faces threats. On the defense side of its business, the risks include possible poor execution on defense programs hurting margins and any U.S. Defense Department budget cutting medium- and long-term growth.

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Four Dividend-paying Defense Stocks to Consider: Lockheed Martin (NYSE: LMT)

Bethesda, Maryland-based Lockheed Martin (NYSE: LMT), a global security and aerospace company, showed resilience after negative media reports about the company when it announced its financial results in July 2023. A key concern stems from a slowdown in F-35 delivery/revenue due to lower short-term demand from the Air Force and some certification issues.

“Also plaguing the company is the flatness of LMT’s current revenue stream,” said Michelle Connell, who heads Dallas-based Portia Capital.

Michelle Connell heads Portia Capital.

However, when Lockheed Martin’s earnings were announced, the Book to Bill ratio for the missile and missile defense system segment grew by 24% to a ratio of 3.3 times, Connell commented. In the defense industry, it takes time to realize revenue after it is booked, or the order is taken, she added.

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Lockheed Martin’s management announced that 2023 would be a transition year, and the statement appears to be accurate, Connell told me. The current hot spot for LMT is the space segment, she added.

Connell, who said she views Lockheed Martin as a stock to own, touted the company’s July quarter’s 12% growth year over year, with revenues of $341 million. Lockheed Martin has “strong fundamentals” with a weighted average cost of capital of just 6% and a return on invested capital of 16%.

Lockheed Martin’s dividend yield currently is 2.64%. In the last three years, the dividend has grown more than 8%.

The company’s management raised guidance in July for sales and profits. For the year, earnings are expected to increase 2%, but earnings per share (EPS) is estimated to jump 23%. The difference is coming from continued share repurchases, she added.

Year-to-date, the stock is down, but if the market continues to rotate out of technology and into other sectors, expect LMT to gain investor interest, Connell counseled.

“As we move into 2024, I think the upside could be as much as 20%,” Connell predicted.

The U.S. Department of Defense (DoD) recently issued multiple billion-dollar contracts awarded supporting munitions replenishment, featuring notable wins for Lockheed Martin. Examples include $4.7 billion for Lots 18 and 19 of the Guided Multiple Launch Rocket Systems (GMLRS), $2.4 billion for Patriot missile production and a $750 million contract for Lot 21 of the Joint Air-to-Surface Standoff Missile (JAASM).

Four Dividend-paying Defense Stocks to Consider: Raytheon Technologies (NYSE: RTX)

Raytheon Technologies (NYSE: RTX), an Arlington, Virginia-based multinational aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide, also is another BofA recommendation in the defense industry. RTX is in the midst of consolidating its defense business through its Raytheon Intelligence & Space and Raytheon Missiles & Defense units.

In a further sign of transition, Raytheon moved its headquarters in 2022 to Arlington, Virgina, near the decision-makers at the Pentagon, from Waltham, Massachusetts. Raytheon’s management is forecasting $200-300 million in cost synergies and plans to reduce intercompany sales between those business units by $1.4 billion.

While this may materialize, BofA’s aerospace and defense analyst Ron Epstein opined that the combination of those business units could reduce clarity into RTX’s defense business, which has been the subject of investor scrutiny in recent quarters due to disappointing sales and margins. The multinational aerospace and defense conglomerate is one of the largest aerospace, intelligence services and defense manufacturing providers in the world, based on revenue and market cap.

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Aside from Raytheon Intelligence & Space and Raytheon Missiles & Defense, the parent company also operates Collins Aerospace and Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense. The company aims to provide solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics and quantum physics. Formed in 2020, the parent company combined Raytheon Company and the United Technologies Corporation aerospace businesses.

A key defense product offered by Raytheon is its Patriot missile system, a shortened version of its full name of Phased Array Tracking Radar to Intercept On Target. Built by Raytheon, the Patriot system ironically fires missiles made by Lockheed Martin.

Four Dividend-paying Defense Stocks to Consider Gain Investor Attention Amid War

Think of Patriot publicity as offering bullish “NewsQ,” i.e., information that can lift a stock, Woods said. Such news can help drive share prices higher in 2023, Woods added.

On Aug. 10, RTX announced that its BBN division received a contract award to support the Defense Advanced Research Projects Agency (DARPA), a research and development agency of the U.S. Department of Defense (DoD) that is responsible for the development of emerging technologies used by the U.S. military. The initiative is aimed at supporting DARPA’s “In The Moment” program that develops foundations needed for algorithms to make independent decisions in mass casualty triage and disaster relief when there often is no human consensus and no clear correct answer.

The goal is for AI to provide the correct answer in “very controlled scenarios,” said Alice Leung, Raytheon BBN’s principal investigator. The intent is to create AI systems that humans would let make decisions independently in uncontrolled environments, she added.

The Raytheon BBN-led team, which includes Kairos Research, MacroCognition and Valkyries Austere Medical Solutions, will use a cognitive interviewing technique to understand how experts, such as medical professionals and first responders, assess information and make trade-offs to act decisively at critical times. This qualitative information will be used to design scenario-based experiments to study how different individual decision-making attributes can explain their choices, and how the attributes of two different people can affect their willingness to delegate decisions. This will enable AI to match an expert population, or even an individual expert.

Four Dividend-paying Defense Stocks: Raytheon Serves in Space

RTX’s space capabilities gained attention with the company’s Aug. 14 report that its small-satellite manufacturer and mission services provider, Lafayette, Colorado-based Blue Canyon Technologies (BCT), successfully launched and established initial contact with four 6U CubeSats for the NASA Starling mission. The mission features a technology demonstration aimed at proving that spacecraft can operate in an autonomous, synchronous manner or “swarm.”

The Starling mission is intended to advance the readiness of technologies for cooperative groups of spacecraft, demonstrating multipoint science data collection by several small spacecraft flying together. The six-month mission will specifically test onboard swarm maneuver planning and execution, communications networking, relative navigation, and autonomous coordination between satellites.

Four Dividend-paying Defense Stocks: Northrup Grumman 

Northrop Grumman (NYSE: NOC) gained attention for unveiling its B-21 Raider, the world’s first sixth-generation aircraft, last December. The B-21 section on the US Air Force (USAF) Plant 42 in Palmdale, California, usually has always been closed to the public, but not for the big reveal.

The B-21 program thus far has achieved the sometimes-elusive feat in defense aircraft manufacturing of staying on schedule. The aircraft also is the first new strategic bomber to enter the USAF fleet in more than 30 years.

The design of the B-21 is noticeable smaller than its B-2 precursor yet but offers similar operational range, according to BofA. It may indicate a need for a larger defense aircraft fleet, the investment firm added.

“It also makes sense why the USAF would select NOC to be the lead OEM on the B-21, given the company’s experience delivering the B-2 and the new aircraft’s striking similarity to its predecessor,” BofA wrote in a research note. “The model looks like a cross between a B-2 and an unmanned aerial vehicle (UAV). Because the B-21 is the only publicly unveiled sixth-generation aircraft, Northrop Grumman can now claim sixth-generation design and fabrication prowess, a title that will likely work in the company’s favor when the USAF looks to select manufacturers for other next generation aircraft.”

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That planned aircraft would be the Next Generation Air Dominance NGAD, BofA wrote. Northrop Grumman remains a BofA buy recommendation.

Northrop Grumman also is a leader in space, successfully manufacturing the first set of solid rocket motor cases for the Missile Defense Agency’s (MDA) Next-Generation Interceptor (NGI) program that is intended to help protect America from an incoming intercontinental ballistic missile attack. In announcing that news on Aug. 8, Northrop Grumman added that the NGI pathfinder motors demonstrate case designs, manufacturing processes, while allowing the teams to test and conduct integration operations. The completed cases will be filled with inert propellent and shipped to Redstone Arsenal, Alabama, for integration into an interceptor, continuing pathfinder activities and further proving-out processes. Raytheon Technologies is a partner on the project.

Investors who are concerned about the market’s recent drop may find these four dividend-paying defense stocks offer a way to invest in equities that tend to be cushioned from the worst of pullbacks due to strong support from government contracts. The four defense-paying defense stocks to consider may prove to be worth buying, especially for investors who like to be paid to stay patient in holding non-technology alternatives.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul 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 uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.

Five oil and gas income investments to purchase as energy prices climb give investors a path to profit. 

The five oil and gas income investments to purchase received early support as earnings season began for such companies. U.S. oil and refiners are showing enough to signal some sound investment opportunities, according to BofA Global Research. 

The latest Consumer Price Index (CPI) data on Aug. 10 showed that the headline inflation in the United States rose from 3% to 3.2%, with core inflation dipping to 4.7% in July, compared to 4.8% expected by analysts and printed a month earlier, wrote Ipek Ozkardeskaya, a senior analyst with Swissquote Bank. But the rising energy and crop prices threaten to stoke inflation in the coming months, Ozkardeskaya added in an Aug. 11 research note.

“That’s certainly why an increasing number of investors and the Federal Reserve’s Mary Daly warned that this was ‘not a data point that says victory is ours,’” Ozkardeskaya opined.

U.S. crude prices slipped on Aug. 10, after a 27% rally since the end of June, and the latest OPEC data indicated a sharp supply deficit of more than 2mbpd this quarter as Saudi cuts output to push prices higher, Ozkardeskaya wrote. This gap could further widen as global demand continues growing and the shift to alternative energy sources is nowhere fast enough to reverse that upside pressure on energy prices, Ozkardeskaya added.

Five Oil and Gas Income Investments to Purchase: Exxon Mobil (NYSE: XOM)

Exxon Mobil (NYSE: XOM), a multinational oil and gas company in Irving, Texas, appears to be on a growth trajectory, according to BofA’s recent research note. The investment firm placed a buy rating and a price objective of $145 per share on ExxonMobil, based on expected prices of $80 Brent and $75 WTI long-term.

The forecast also assumes long-term Henry Hub natural gas prices of $4.25. The outlook is based on a long-term, post-tax weighted average cost of capital (WACC) of 7.7%. The BofA strategy team assumed a risk premium and a five-year monthly beta.

Key risks to XOM attaining the price objective set for it by BofA include the oil and gas price and margin environment, any significant delays to new upstream projects that are “critical” to the country’s growth and possible inability to capture the price environment due to cost pressures. Potential outperformance could come from increased oil and gas prices, the investment firm added.

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Five Oil and Gas Income Investments to Purchase: Energy Select SPDR (XLE)

The top holding in the Energy Select SPDR (XLE) exchange-traded fund (ETF) is Exxon Mobil, said Bob Carlson, who leads the Retirement Watch investment newsletter. Carlson, who further serves as a pension fund chairman, noted that energy stocks are climbing amid rising prices. XOM recently accounted for 21.16% of XLE’s holdings. Carlson spoke positively about the fund as a possible buy for investors who are interested in diversifying their holdings in the energy sector with a single ETF

Paul Dykewicz interviews Retirement Watch leader Bob Carlson.

Jim Woods, who leads investment advisory services, personally recommends Exxon Mobil in the Income Multipliers portfolio of his Intelligence Report investment newsletter. Woods, who also heads the Successful Investing investment newsletter, as well as the Bullseye Stock Trader and High Velocity Options advisory services, has produced profitable returns on his XOM recommendation for his Intelligence Report subscribers.

Paul Dykewicz meets with Jim Woods, head of Intelligence Report.

Five Oil and Gas Income Investments to Purchase: Portia Capital’s Pick

Michelle Connell, who heads Dallas-based Portia Capital, also favors XOM. One of the reasons is that Exxon Mobil’s management recognizes the need to include alternative energy in its portfolio, she added.

Last month, the company announced the acquisition of Denbury, a $4.9 billion Dallas company that focuses on carbon capture and oil recovery, Connell continued. The purchase will help smooth out the seasonality of XOM’s cash flow/revenue, she added.

“The company will benefit from large tax incentives by participating in this green energy segment,” Connell counseled. “In the last few years, the company has been focusing on lowering its costs of its headquarters and personnel. This has included a move up at headquarters from Houston to the Dallas Metroplex. It has also included the lowering or paying down of the company debt. This is expected to continue over the next several years.”

Michelle Connell heads Portia Capital.

With the reduced debt, Exxon Mobil’s balance sheet is strengthening. The company has “strong” free annual cash flow of $5 billion, Connell commented. It also has a dividend yield of 3.4% that is expected to increase to 4% during the next 3-4 years, she added.

Bargain hunters should note that the “stock is cheap,” Connell told me. In the next 12 months, it could have upside of more than 40%, Connell continued.

“It’s current PE is 8.6,” Connell said. “It’s average PE is 17 times. It’s gross margins are now 28%. As recently as 2020, gross margins were only 4%.”

Five Oil and Gas Income Investments to Purchase: Chevron (NYSE: CVX)

Chevron (NYSE: CVX), of San Ramon, California, is the second-largest energy company in the United States. It also is rated as a BofA “buy.” However, its growth is not keeping pace with XOM, the investment firm wrote.

CVX is the second-largest holding of Energy Select SPDR, with 18.58% of the fund’s assets, according to Morningstar. Chevron offers a current dividend yield of 3.8%.

Chevron recently released an update to its senior management team. A “surprise” early retirement led to the departure of Chief Financial Officer Pierre Breber and the promotion of Eimear Bonner from chief technology officer to CFO. Another change is the waiver of the mandatory age requirement of 65 for the chief executive officer. The relaxation of that policy will allow 62-year-old CEO Mike Wirth to continue his tenure beyond that age within three years. Another notable move in the executive suite involves Frank Mount, the vice president of mergers and acquisitions, becoming the head of business development.

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Five Oil and Gas Income Investments to Purchase: Hess Oil (NYSE: HES)

Hess Corporation (NYSE: HES) offers a chance to buy shares on a rebound after the company reported net income of $119 million, or $0.39 per share, in the second quarter of 2023, compared with net income of $667 million, or $2.15 per share, in the second quarter of 2022. On an adjusted basis, Hess reported net income of $201 million, or $0.65 per share, in the second quarter of 2023. The decrease in adjusted after-tax results, compared with the prior-year quarter, reflects lower realized selling prices, partially offset by the net impact of higher production volumes in the second quarter of 2023, the company reported on July 26.

BoA rates the stock as a buy with a price objective of $205 per share, assuming $80 Brent and $75 West Texas Intermediate (WTI) long term prices, as well as long-term Henry Hub natural gas at $4.25. The investment firm applies a long-term (post-tax) weighted average cost of capital of 8.5%, which is based on the BofA strategy team’s assumed risk premium and a five-year monthly beta.

However, the stock is not immune from risks such as oil and gas price and margin uncertainty, significant delays to the new upstream projects critical to its growth targets, inability to capture the price environment due to cost pressures from operating expenses, capital expenditures and taxation. Another risk is that news flow around HES’ exploratory and appraisal drilling activities could impact the stock.

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Five Oil and Gas Income Investments to Purchase: Ovintiv Inc. (NYSE: OVV)

The “rate of change” is a critical theme driving relative stock performance for standouts such as Denver-based Ovintiv Inc. (NYSE: OVV), a producer of petroleum natural gas and natural gas liquids, BofA wrote in a recent research note. Ovintiv’s early results from its acquisition of properties are spurring enhanced productivity.

BofA set a price objective for Ovintiv of $62, or $84CN, assuming $80 Brent and $75 WTI long-term prices. The investment firm is predicting long-term Henry Hub natural gas prices of $4.25. Henry Hub is a natural gas pipeline in Erath, Louisiana, serving as an official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX).

The investment firm applies a long-term, post-tax weighted average cost of capital (WACC) of 9.7% that is based on the BofA strategy team’s assumed risk premium and a five-year monthly beta. But risks exist that could thwart Ovintiv from achieving the $52 price objective.

The risks include the oil and gas price and margin environment, significant delays to the new upstream projects critical to the company hitting its production targets and potential excess cost pressures from operating expenses, capital expenditures and taxes. Other key risks are possible currency challenges and certain Midland Basin assets closing by mid-2023.

However, a chance to outperform the forecast exists, too. That path might include potentially improving the company’s cost of capital as Ovintiv deleverages its balance sheet, along with a possible increase in oil and gas prices. BofA rates Ovintiv as a buy.

Chart courtesy of www.stockcharts.com

Five Oil and Gas Income Investments to Purchase Face Limited Political Risk from Russia’s War

The three oil and gas stocks to buy should not incur any major political risk from Russia’s ongoing war with Ukraine. One recent development of importance is that a Ukrainian maritime drone reportedly struck a Russian oil tanker on Saturday, Aug. 5. 

The attack damaged the tanker’s engine room, according to Russian state media. The previous day, a Russian warship was hit in a maritime drone attack. However, Russia’s ministry of defense claimed its forces killed nearly 600 Ukrainian servicemen on Aug. 11, according to Sky News.

Russia also attacked the eastern Ukrainian city of Pokrovsk on Monday, Aug. 7, in an apparent plot to target rescue workers and first responders. Ukrainian officials described the incident a “potential war crime.” Seven confirmed dead from the attack included five civilians, an emergency worker and a service member, Ukrainian officials said. 

The first responders came upon the scene to help victims following a strike from a short-range ballistic missile that hit what Ukraine’s President Volodymyr Zelensky called an “ordinary residential building” in the eastern Ukrainian city’s center. For investors, the five oil and gas income investments to purchase should expose them to fallout from the attacks taking place in the Black Sea that traditionally has been a route for transporting goods from both Ukraine and Russia.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul 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 uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.

Five dividend-paying semiconductor investments to purchase as artificial intelligence (AI) initiatives fulfill the potential that is raising the value of their share prices.

The five dividend-paying semiconductor investments to purchase are poised to ride the emerging artificial intelligence technology trend that is expected to help fuel the industry’s resurgence this year after a 30% drop in 2022. The first half of 2023 has shown renewed enthusiasm about technology’s potential to catalyze progress in business and society, according to a new report by McKinsey & Co.

“Generative AI deserves much of the credit for ushering in this revival, but it stands as just one of many advances on the horizon that could drive sustainable, inclusive growth and solve complex global challenges,” according to McKinsey & Co.

Five Dividend-paying Semiconductor Investments to Purchase: Invesco Dynamic Semiconductors (PSI)

For investors seeking to play the AI field rather than buy individual stocks, the “best” exchange-traded fund (ETF) available is Invesco Dynamic Semiconductors (PSI), said Bob Carlson, a pension fund chairman who heads the Retirement Watch investment newsletter. The fund tracks the Dynamic Semiconductor Intellidex Index, aiming for price momentum, earnings momentum, quality, management action and value.

Paul Dykewicz interviews Bob Carlson, head of Retirement Watch.

The turnover ratio of the fund is more than 100% a year, Carlson said. The ETF typically holds 30 stocks and adjusts the allocation among them based on the factors previously listed. Recently, 47% of PSI was in its 10 largest positions.

The top holdings in the fund recently are NVIDIA (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Lam Research (NASDAQ: LRCX), Applied Materials (NASDAQ: AMAT) and Micron Technology Inc. (NASDAQ: MU). As far as the fund’s performance, PSI is up 1.43% in the last month, 25.83% in three months, 39.64% for the year to date and 20.31% over 12 months.

Chart courtesy of www.stockcharts.com

Five Dividend-paying Semiconductor Investments to Purchase: AI Spur Growth

Initial results of second-quarter 2023 cloud capital expenditures (capex) are showing investments in AI seem to be offset by slowing traditional computer spending, according to BofA Global Research. For example, Microsoft’s (NASDAQ: MSFT) capex outperformance of $8.9 billion topped a forecast of $7.8 billion, while Google, a key business of Alphabet (NASDAQ: GOOGL), attained a capex of $6.9 billion, but fell short of an expected $8.0 billion. Meta Platform Inc.’s (NASDAQ: META) $6.2 billion capex dipped below a projected $7.9 billion.

“All three hyperscalers highlighted material portions of capex supporting AI projects,” BofA technology analyst Vivek Arya wrote in a recent research note. Meta/Google reported capex cuts from delays of data center construction projects, moderation in build-out of office facilities (Google) and cost savings centered on non-AI servers (Meta), he added.

“We continue to see benefits for semis as AI investment ramps,” Arya wrote.

However, it will be prudent for “hyperscalers” to show profitability from AI projects, potentially leading to cautious data center capex spending patterns, Arya wrote in his note.

AI server central processing unit (CPU) demand is offset by slowing non-AI spending on CPUs already included in all non-AI servers, according to Arya’s research note. Rising investment in graphics processing unit-based cloud service providers should help quicken generative AI adoption, showcasing the value of having an end-to-end AI platform, rather than just a cheaper graphics processing unit (GPU), further raising AI barriers for typical CPU vendors, he added.

Five Dividend-paying Semiconductor Investments to Purchase: Broadcom Inc. (AVGO)

Another of the five dividend-paying semiconductor investments to purchase is San Jose, California-based Broadcom, with a $1,050 price objective that falls within the stock’s long-term 10x-30x range, given double-digit-percentage earnings per share (EPS) growth and best-in-semis profitability, free cash flow (FCF) generation and returns. Free cash flow represents money a company has left over after paying its operating expenses and capital expenditures.

Risks to Broadcom achieving the price objective include sensitivity to U.S./China trade relations, high exposure to Apple (NASDAQ: AAPL), networking, smartphone, storage and enterprise software market challenges, and a recent strategy of moving into non-core software businesses that could have execution issues.

Chart courtesy of www.stockcharts.com

Five Dividend-paying Semiconductor Investments to Purchase: Camtek (CAMT)

Israel-based Camtek (NASDAQ: CAMT) received a $50 price objective from BofA, coming within the company’s long-term 8x-40x range. Prospects for outperforming BofA’s price objective could be aided by accelerated share gains vs. key competitor Onto Innovations, stronger-than-expected electronics demand that may tighten semiconductor capacity further to drive increased semiconductor equipment sales and the potential industry consolidation that may turn it into an acquisition target.

Risks to Camtek fulfilling its price target include a weaker-than-expected capital spending cycle, heightened competition with large competitors like KLA Corp. and the historically cyclical nature of semiconductor capital spending, particularly on packaging equipment.

Chart courtesy of www.stockcharts.com

Five Dividend-paying Semiconductor Investments to Purchase: Marvell Technology Group Ltd. (MRVL)

Marvell Technology Group Ltd. (NASDAQ: MRVL), of Santa Clara, California, received an $80 price objective from BofA. The valuation is “well-supported” by Marvell’s 15-20% longer-term compounded annual earnings per share (EPS) growth potential, within the normal 1x-2x range for high-growth semiconductor peers.

Risks to Marvell reaching that price target include integration of businesses from its recent deals, financial hurdles related to going to net debt from net cash position, as well as achieving expected cost synergies in a timely manner. Additional risks include its cyclical industry, possible slowdown in legacy hard disk drive, infrastructure spending and storage assets, along with competition from larger, well-resourced rivals, BofA added.

Chart courtesy of www.stockcharts.com

Five Dividend-paying Semiconductor Investments to Purchase: NVIDIA Corporation (NVDA)

Santa Clara, California-based NVIDIA’s $550 price objective set by BofA is within the semiconductor company’s historical 26x-69x forward year price-to-earnings range, the investment firm wrote. The valuation is justified, given stronger growth opportunities ahead as gaming cycle troughs and data center demand potentially face strong, long-term demand dynamics, BofA wrote.

Risks to NVIDIA meeting the price objective set by BofA are weakness in the consumer-driven gaming market, competition with Intel (NASDAQ: INTC), AMD, Broadcom and Marvell, internal cloud projects and other companies in accelerated computing markets, and potential restrictions from the U.S. government on shipments of advanced AI technologies to overseas customers. Other risks include lumpy and unpredictable sales in new enterprise, data center and auto markets, potential for decelerating capital returns, possible automobile sale slowdowns until advanced driver-assist systems become more meaningful and elevated operational expense growth.

Chart courtesy of www.stockcharts.com

Political Risk Increases from Russia’s Escalating Attacks Against Ukraine 

Political risk is growing amid drone strikes hitting targets in both Ukraine and Russia this week by each side. Russian forces struck residential areas and a hospital in Kharkiv, Ukraine, reportedly killing a doctor and injuring five medical workers. In turn, a government ministry building in Moscow was damaged from a drone attack likely to have come from those sympathetic to Ukraine’s plight.

Ukrainian sea drones attacked a major naval base in Russia on Friday, damaging a Russian warship in the Black Sea and causing it to list to the side. The drone strike occurred hundreds of miles from Ukrainian-held territory.

Social media videos showed the amphibious Russian landing ship tilting and sitting low in the water. The vessel needed to be towed near the base at Novorossiysk, Russia’s largest port.

The strike came amid growing tensions in the Black Sea, with Ukrainian President Volodymr Zelensky recently vowing to bring the war to Russian territory. Despite heavy losses of soldiers on both sides since Russia invaded Ukraine in February 2022, a peaceful resolution seems unlikely anytime soon.

With Russia disrupting grain exports from Ukraine in July 2023, endangering the food supply to countries in Africa and elsewhere, the fallout from the protracted war is immense. Political risk for investors is rising further amid an intensifying conflict as Ukrainian forces attempt a counteroffensive aimed at pushing Russian forces back to their own land.

The five dividend-paying semiconductor investments to purchase are positioned to benefit from increased demand for artificial intelligence advances. Despite heightening political risk amid Russia’s unrelentingly war that brazenly has targeted civilians in residential neighborhoods of Ukraine, investors can still profit from an important technology trend.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul 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 uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.

Five income investing strategies championed by Wall Street veteran Bryan Perry show the power of dividends to produce potent profits.

The five income investing strategies championed by the Wall Street the veteran were presented at the recent FreedomFest conference in Memphis, Tennessee, providing powerful paths to propel portfolio performance. Perry, who spearheads the stock-focused, high-income Cash Machine investment newsletter, shared his five income investing strategies during two presentations at the conference’s Global Financial Summit.

The five income investing strategies are aimed at identifying finding stable stocks in an unstable market, enhancing knowledge to limit fear, reducing risk through diversification, discovering the beauty of non-correlated asset classes and steering clear of yield traps. The first of those five income investing strategies are tenets of Perry’s Cash Machine investment newsletter.

Paul Dykewicz interviews Cash Machine leader Bryan Perry at a MoneyShow.

The income investing landscape is complicated by the following challenges, Perry told FreedomFest attendees:

• Global central banks are fighting inflation with a goal of reducing it to 2%
• The Federal Reserve’s 0.25% rate hike on July 26 to a target range of 5.25%-5.50% — the highest level since early 2001 — could be the last this year, before the U.S. central bank may start to cut the Fed Funds Rate in 2024 to further flatten the yield curve
• China’s post-pandemic economic reopening is not appearing as robust as expected

Five Income Investing Strategies: Find Stable Income Stocks in an Unstable Market

To attain the goal of finding stable income stocks in an unstable market, Perry created a high-yield portfolio. He seeks to select stocks and funds with the following attributes.

• High-quality business fundamentals
• Earned income from organic growth
• Responsible use of leverage
• Active, dynamic sector rotation
• Swim with the tide

Five Income Investing Strategies: Enhance Knowledge, Curb Fear

To enhance knowledge by curbing fear, Perry spoke of the importance of understanding each high-yield income investing asset. Perry cautioned that there is “no such thing” as a casual trade.

To pursue this priority of enhancing knowledge, Perry said he takes the following actions:

• Drills down and performs solid due diligence
• Calls company leaders or portfolio managers, when needed
• Assesses why each holding fits into the overall high-yield portfolio
• Constantly checks and validates that investing themes remain intact

Five Income Investing Strategies: Reduce Risk Through Diversification

“There is no substitute for a broad array of holdings in many different sectors,” Perry told attendees. He shared the value of sometimes using exchange-traded funds (ETFs), exchange-traded notes (ETNs) and closed-end funds (CEFs) in conjunction with individual stocks.

In compiling Cash Machine‘s portfolio, Perry said he prefers:

• 20-25 holdings to offer a good balance
• Not putting any more than 5% in any one position
• Use of high-yield investing as a dynamic opportunity that allows quick portfolio pivots, if needed

The current Cash Machine portfolio features these diverse choices and their respective current dividend yields:

• Utilities and Energy: 8.23%, 6.50%, 9.86%, 9.86%, 11.66%, 20.78%
• REITs
• Preferred Securities: 9.95%, 6.18%
• Convertible Securities:
• Equity/index covered call CEFs: 9.46%, 11.26%
• Energy master limited partnership (MLP) ETFs: 7.94%
• Mortgage real estate investment trusts (REITs):
• Investment management companies: 14.80%
• Private equity:
• Business development companies (BDCs): 14.18%
• Electric vehicle (EV) automotive stocks: 5.10%
• India fund: 10.35%

Five Income Investing Strategies: Discover the Beauty of Non-Correlated Asset Classes

Counter levers help uncertain investing landscapes even out volatility, Perry warned. For portfolio protection, he uses non-correlated assets.

Among the various portfolios in Cash Machine, one has been the most successful recently. That is the Extreme Income Portfolio, where all 13 positions are profitable.

Bryan Perry

In navigating a daily “tug-of-war” between the inflation and deflation camps, Perry spoke of aiming to:

• Strike a good balance between defensive and offensive assets
• Be careful not to bet the ranch on a single sector, no matter how good it appears
• Maintain genuine offsetting assets

Five Income Investing Strategies: Steer Clear of Yield Traps

Even though Perry screens to find high-yield assets, the practice can be “dangerous” to one’s financial health if not done well, he cautioned. If an investment looks like “smoke and mirrors,” it probably is just that, he added.

One risk is that rising yields can reflect dropping underlying stock prices, Perry said. Investors need to give heavy scrutiny to any managed income distributions, he continued.

“Look out for one-time payouts that skew yields,” Perry said. “Avoid semi-annual dividend payers.”

Perry counseled that the current Cash Machine portfolio structure consists of:

• 29 income-generating holdings with a blended yield of 10.5% accompanied by capital gains of 10-15% per year
• 10%+ average dividend yield on reduced market risk
• Recommendations based on macroeconomic and interest-rate trends that are “ideal for strategic high-yield investing.
• Mainly domestic assets

“Market conditions for high-yield assets are improving,” Perry told FreedomFest attendees. “Volatility cannot be fully avoided but can be reduced.”

The timing of when to reduce market exposure and apply hedges into strength is a key skill, Perry continued. Avoid the mistake of complacence by becoming proactive when markets look vulnerable or frothy, he added.

Perry proposed using hedging strategies when necessary to offset risk without sacrificing income. His strategies have helped to provide double-digit-percentage returns in his Cash Machine portfolio and he discussed he plans to keep doing so.

Beware of risks and shelter investments when needed, Perry counseled. Current risks that Perry said bear watching include:

• The stock market is beset with a number of converging forces that are pulling and pushing on investor sentiment.
• Heavy spending by Congress versus the Fed raising interest rates is causing peak uncertainty.
• No one knows when inflation will come down to a level that is acceptable to the Fed.
• The war in Ukraine appears to be dragging on.
• Stubbornly high energy costs risk putting Europe into recession.
• Reopening of China’s economy could be complicated by a new virus or a wave of COVID cases.

The following are examples of possible events that could cause extreme volatility, Perry cautioned:

• The Dow is seeing point swings of several hundred points a day.
• Potential for “black swan” events has the market trading with peak uncertainty conditions.
• Russia’s President Putin may get desperate and use thermobaric, non-nuclear weapons.
• China could trigger President Biden to send troops, if Taiwan is invaded.
• The Iran deal could cause Israel to launch attacks on strategic targets.
• A large-scale credit default event within China or Europe is the number one concern of institutional global fund managers.
• More regional banks could fail as commercial real estate loan defaults rise.

Watch out for Lingering Political Risk

Those interested in the five income investing strategies shared by Perry can pursue them by following the Cash Machine investment newsletter, Income-producing stock strategies featured in Cash Machine may hold special appeal to fend off political risk due to Russia’s unrelenting invasion of Ukraine that recently has attacked the important agricultural port of Odessa and the nation’s grain storage facilities, causing food shortages, exacerbating a humanitarian crisis, limiting the neighboring country’s exports and raising the price of grain to benefit the economy of the grain-producing aggressor.

With Russia’s President Vladimir Putin waging deadly attacks against civilians in Ukraine, the value of following the five income investing strategies to protect against political risk may hold special appeal. With Ukrainian forces starting to make a little progress in its recent counter offensive, political risk warrants watching.

Watch this video to hear more of my thoughts.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul 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 uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.

Three wise dividend-investing strategies can help provide significant supplemental income along with share price appreciation.

The three wise dividend-investing strategies are reflected through the Intelligence Report investment newsletter led by Jim Woods, who shared his multiple ways of using a “disciplined approach” in choosing recommendations. Woods told attendees at last week’s FreedomFest in Memphis, Tennessee that his recommendations are aimed at buying stocks for the long term, diversifying holdings among key segments, owning equities with rising dividends, preserving assets and pursuing strategic short-term and long-term moves.

Three wise dividend-investing strategies use by Intelligence Report fit the categories of Income Multipliers, Tactical Trends and Portfolio Protection. The Income Multipliers encompass 20 “best-of-breed” dividend-paying stocks that come from 12 sectors, Woods said.

Paul Dykewicz speaks with Jim Woods, who heads Intelligence Report.

Three Wise Dividend-Investing Strategies: Income Multipliers

That diversification helps to shield investors through market swings. The aim is to use patience and the power of compounding dividend payouts to profit.

Although the Income Multipliers lost 2.58% in 2022, that performance far exceeded the 18.11% drop in S&P 500 Index (^SPX). The Income Multipliers are drawn from sectors such as consumer discretionary, consumer staples, energy, financial, health care, industrial, information technology, materials, real estate and telecommunication services. One of the recommendations has its own category of special situations.

Three Wise Dividend-Investing Strategies: Tactical Trends

Another way to invest through Intelligence Report is the Tactical Trends Portfolio that recommends both stocks and exchange-traded funds (ETFs). The recommendations are based on fundamentals, technical analysis and NewsQ, Woods told the attendees.

NewsQ is a term that Wood uses to identify stocks and funds that are gaining buzz in the form of media attention. Such rising profiles can encourage extra buying in stocks and funds to boost their share prices.

The Tactical Trends Portfolio manufactured a massive 11.26% upward move in 2022. That rise is even more impressive when compared to the 18.11% drop in the in S&P 500 Index (^SPX) last year.

Tactical Trend stocks include Apple (NASDAQ: AAPL), of Cupertino, California, Tesla (NASDAQ: TSLA), of Austin, Texas, and Nvidia (NASDAQ: NVDA), of Santa Clara, California.

Chart courtesy of www.stockcharts.com

Three Wise Dividend-Investing Strategies: Protection Portfolio

The Protection Portfolio includes an array of holdings such as short- and intermediate-term bond funds. With the Fed engaged in boosting rates to the highest level since 2007, bonds have not been bulling ahead.

However, the Protection Portfolio also includes an ETF focused on essential consumer staples such as food and beverages. A dividend-growing ETF is another path to potential profitability.

The portfolio also includes a gold ETF focused on offering one of the traditional hedges against disaster. Plus, the portfolio’s combination of income, consumer staples, dividend growth and gold limited its 2022 loss to just 1.31%, compared to the 18.11% plunge of the S&P 500 Index (^SPX).

Three Wise Dividend-Investing Strategies Contrast with Investing in Options

Income investors who also like the idea of Interested in 10 highly profitable stock and option trades to propel personal portfolios. Double-digit-percentage stock trades and triple-digit-percentage returns on option transactions have been achieved by Woods in his Bullseye Stock Trader service, also known as BEST.

His 10 highly profitable stock and option trades since 2019 in the Bullseye Stock Trader service offer a contrast to conservative income investing. Bullseye Stock Trader has notched some especially strong performers among its various trades.

The stock and option trading service turned to technology for two of its most potent picks. One delivered a 55.79% gain in Taiwan Semiconductor (NYSE: TSM), of Hsinchu, Taiwan, in only 119 days, while announced produced a 55.79% profit in Nvidia within just 98 days. 

Chart courtesy of www.stockcharts.com

Interested in 10 Highly Profitable Stock and Option Trades as Alternative to Dividend Equities?

• Average annual return since inception: 122.05%

• Average days held: 56.3

• $100,000 start value would become $222,050 in 1 Year

• $100,000 start value would become $1,631,465 in 3.5 Years

Both stocks and options have produced some robust returns for Bullseye Stock Trader. The following lists show the hefty gains in relatively brief holding periods for Bullseye Stock Trader.

10 Top Stock Trades in BEST: 2019-2023

• Thor Industries (THO): 45.75% in 63 days 
• Tractor Supply (TSCO): 20.02% in 56 days
• Netflix (NFLX): 19.8% in 22 days 
• Match Group (MTCH): 38.07% in 41 days 
• Planet Fitness (PLNT): 23.54% in 77 days
• NVIDIA (NVDA): 55.79% in 98 days
• MercadoLibre, Inc. (MELI): 40.40% in 75 days 
• Vista Outdoor Inc. (VSTO): 44.69% in 70 days 
• Taiwan Semiconductor (TSM): 55.45% in 119 days 
• Voyager Digital Ltd. (VYGVF): 244% in 56 days

 10 Top Option Trades in BEST: 2019-2023:

• LNG Mar $125 calls: 224.20% in 42 days
• TSCO Oct $130 calls: 151.95% in 56 days 
• THO Sep $70 calls: 301.81% in 63 days
• COST Jan $460 calls: 298.51% in 70 days
• NFLX Jun $355 calls: 151.94% in 22 days
• PAYC Feb $280 calls: 256.90 in 28 days 
• MELI Jan $1340 calls: 185.29% in 56 days 
• VSTO Aug $35 calls: 219.64% in 70 days 
• TSM Nov $85 calls: 243.94% in 70 days 
• MTCH Sep $75 calls: 447.30% in 41 days 

The biggest stock trade gain of 244% occurred in just 56 days from Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2). Woods advised his subscribers to take profits before the company entered a voluntary restructuring process on July 5, 2022.

Jersey City, New Jersey-based Voyager Digital, founded in 2018, initially announced it planned to bring “transparency and cost efficiency” to the marketplace by providing a platform for trading more than 60 different crypto assets through its mobile application. The company gained media attention when its CEO Steve Ehrlich held a press conference with Dallas Mavericks Governor Mark Cuban and several players to publicize a five-year “international” alliance between the two organizations to promote crypto trading.

Interested in 10 Highly Profitable Stock and Option Trades? Five Major Characteristics

Woods gave a detailed presentation on his Bullseye Stock Trader investing strategy at last week’s FreedomFest conference in Memphis, Tennessee. He discussed identifying stocks on the ascent by using five major characteristics.

The first step is to screen for stocks that have outpaced their peers for the past six to 12 months on a relative strength basis, Woods said. The goal is to find consistent, proven winners beating at least 80% of all stocks in the market, he added.

“We only want thoroughbreds, no donkeys,” Woods quipped to the FreedomFest attendees.  

Earnings Power Is a Good Sign for Stocks or Options

Woods further spoke of screening for stocks that have outpaced their peers for the past several quarters and years for earnings per share (EPS) growth. He talked about wanting consistent, proven winners outperforming at least 80% of all stocks in the market.

“Forget about value, the real value is earnings growth,” Woods said.

The other three screening tools focus on finding a positive trading pattern, establishing industry leadership and gaining positive NewsQ, Woods explained.

“NewsQ is the ability to take the market’s pulse on a specific stock or industry to see if there is enough positive, or absence of negative, news items in that stock that can drive it higher,” Woods said. “Thus, NewsQ interpretation is part science, part art, part market awareness and a lot of applied experience.” 

Three Wise Dividend-Investing Strategies

Those interested in three wise dividend-investing strategies can try to maximize investment returns by following Intelligence Report recommendations. Stable, income-producing investments favored in Intelligence Report may offer strong appeal to fend off political risk due to Russia’s unrelenting invasion of Ukraine that in the last week included targeting the important agricultural port of Odessa and grain storage facilities in a possible attempt to cause food shortages and a global humanitarian crisis. With Russia’s President Vladimir Putin waging deadly attacks against civilians in neighboring Ukraine, the safety of dividend-paying stocks and funds could make sense for a large number of investors.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul 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 uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.