Income investing strategies can use options and dividends in pursuit of heightened returns.

Investors who are willing to accept additional risk in pursuit of potent profits may be tempted to try options, especially if guided in how to do so. One way to engage in options trading is with the stewardship of a seasoned specialist, especially a person who also can serve as a stock sherpa.

One person to consider is Jon Johnson, a recipient of business and law degrees from the University of Texas at Austin, who is the editor of Investment House Daily, Technical Traders Alert, Rapid Profits Stock Trader and Pick of the Week. He also has gained additional attention as a guest on CNBC-TV, Bloomberg TV, Houston’s 650 Business Radio and a source in various financial articles in the Washington Post, Chicago Sun-Times, The Wall Street Journal’s Smart Money magazine, Bloomberg, Kiplinger Personal Finance Magazine, Houston Chronicle, Business Week and Money magazine. Johnson also was featured in Forbes.com’s Best of The Web online edition.

Jon Johnson: Income Investing Strategies Can Use Options and Dividends

Johnson told me he never really understood why the earning income from options or dividends tend to be separated. The money is income either way, he added.

“It can be argued that the risk is different, but risk is typically often tied to lack of knowledge of the variables,” Johnson continued. “More variables imply more risk, but if you implement strategies to control or account for the variables, risk diminishes. Indeed, with purchasing options there is certainly limited risk: the price of the option.”

Johnson developed his own trading and investing style that became so successful his brokers asked if they could follow his trades for themselves and their clients. He then began to provide investing and education services to clients prior to sharing his insights through Investment House.

Jon Johnson leads Investment House Daily, Pick of the Week, Technical Trader and Rapid Profits Stock Trader.

Investment House Daily trade options as well as stocks. Some of its positions have been held long term in stocks.

“We had plays on AAPL that lasted years,” Johnson said. “What we do with those name-brand stocks that we hold for as long as they perform is sell calls against them after upside rallies. There are technical attributes to rallies that I know very well and share with my readers as to when a particular rally leg is peaking. We use those to write calls against the stock, let the stock fade back to test, then buy the same strike and month of options sold, pocketing the difference.”

That strategy is simple for stocks held long term, Johnson counseled. With Investment House Daily, the decision was made to try and keep stocks roughly $80 or less so subscribers could build a better position.

“That allows us to be in stocks that grow, such as AAPL, did,” Johnson said. “But it does preclude a lot of the name brand stocks out there that sport a share price in the hundreds or even thousands.

Income Investing Strategies Can Use Options and Dividends: Investment House Daily

Investment House Daily features both options and stocks in its trades that are accompanied by an in-depth look at each market session to address the technical moves and their significance for stock indices, bonds, currencies and commodities, Johnson told me. Sentiment indicators are monitored by the Investment House Daily service to help in making investment decisions.

Those indicators include put/call ratio, bulls versus bears, short interest, the VIX volatility index, etc., to forecast how the Investment House Daily service should recommend options for subscribers to buy and to sell. Market leadership is examined to assess whether an upward or downward trend is emerging, Johnson added.

“From this information, we glean top picks and craft plays that we will enter if the conditions are met,” Johnson explained. “The plays sought are quality stocks, preferably $75 per share or lower, so we can more easily invest and trade the stock and not necessarily have to play options if we prefer not to. A lot of factors determine what plays make the report.”

Video reports are offered on the weekends, and on Monday and Wednesday. Each Tuesday and Thursday, subscribers receive full writeups but without related videos. Email and text alerts announce when subscribers should enter positions, take profits and exit them, Johnson said.

“I like to say we want to get people to my definition of success: doing what you want to do, when you want to do it,” Johnson said.

Write-ups about new recommendations are provided on the weekends, with related charts. During the weekdays, Johnson details what stocks are interesting and discusses them in his video reports. Tables can be accessed online by subscribers to see any changes in recommended buy points, stop-loss points, news, etc., he added.

Income Investing Strategies Can Use Options and Dividends: Options Trades

A 68.00% dividend profit was procured in February 2024 when Investment House Daily recommended call options in ProShares Bitcoin Strategy ETF (ARCX: BITO). As the first U.S. exchange-traded fund that seeks to correspond to the performance of bitcoin, BITO invests in bitcoin futures and does not invest in bitcoin. There is no guarantee the fund will closely track bitcoin returns.

Chart courtesy of www.stockcharts.com

Yet a higher gain of 121.78% was obtained when Investment House Daily recommended calls in Dallas-based Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY).

Chart courtesy of www.stockcharts.com

Income Investing Strategies Can Use Options and Dividends: Technical Traders

Technical Traders Alert is an options-only service that provides the same market summary features as Investment House Daily. In addition, Technical Traders Alert offers time-sensitive alerts.

“This service follows leaders but does not eliminate plays because the fundamentals are not there,” Johnson told me. “Trades are technically based, and the best patterns win, so to speak. Price of the stock is not a concern because this is an options service primarily focused on buying calls and options — used to do spreads, but the maintenance of spread positions made an alert system cumbersome and unsatisfying to subscribers.”

Due to Technical Traders Alert focusing on the buying of calls and puts, everything needs to be right from earnings awareness, to expiration, to strike price, etc., Johnson told me. The outlook must allow for an “acceptable” 3:1 potential gain to risk, with other great characteristics such as gap fills, Fibonacci extensions, etc., for targets, he added.

“We don’t care if the market rises or falls – we fish off the front or the back of the boat, playing what the market gives,” Johnson said. “That is the motto: take what the market gives.”

Johnson previously recommended Lam Research Corporation (NASDAQ: LRCX), a Fremont, California-based provider of wafer fabrication equipment and services to help chipmakers build smaller and faster electronic devices. Within just days of the Feb. 9 recommendation, Johnson informed his subscribers to sell, producing an average gain of 54.27%.

Chart courtesy of www.stockcharts.com

Income Investing Strategies Can Use Options and Dividends: Pick of the Week

Pick of the Week selects one equity from the daily alerts each week to highlight in this stock-only report, Johnson said. The Pick of the Week is distributed to subscribers on the weekend. The service also offers a table of recommendations but no market analysis, he added.

One Pick of the Week trade that turned into a substantial double-digit-percentage winner in just 73 days between October 16, 2023, and December 28, 2023, featured Chicago-based Coeur Mining (NYSE: CDE). The stock of the precious metals producer generated a 27.18% gain.

Chart courtesy of www.stockcharts.com

Coeur Mining operates four wholly owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. Plus, Coeur Mining owns the Silvertip silver-zinc-lead exploration project in British Columbia. A lesson about the volatility of the stock was shown on Tuesday, Feb. 13, when its share price plunged 8.3%, falling 24 cents a share to $2.54.

Another profitable Pick of the Week trade occurred between November 29, 2023, and January 2, 2024, with San Francisco-based Opendoor Technologies Inc. (NASDAQ: OPEN). Opendoor aims to facilitate the buying and selling of a home on a mobile device by serving as an e-commerce platform for residential real estate transactions. That Pick of the Week stock trade produced a profit of 39.37% within 34 days.

Chart courtesy of www.stockcharts.com

Income Investing Strategies Can Use Options and Dividends: Rapid Profits Stock Trader

Rapid Profits Stock Trader is another stock-only advisory service led by Johnson. But Rapid Profits Stock Trader lacks the market analysis offered in his Pick of the Week service.

Rapid Profits Stock Trader uses texts and emails to inform subscribers of when to buy and sell the stocks it recommends. In this service, the guidance takes the form of an alert that instructs subscribers what to buy and sell, as well as when.

Paid subscribers receive access to an online website that provides an update about all current positions. The focus of Rapid Profits Stock Trader is on lower-priced equities in the $1 to $40 range that show great entry opportunities, Johnson said.

The idea is to “move in,” collect 5%, 10% and even 15% or more based on explosive moves, Johnson told me.

“We typically don’t hang around in a position, if possible,” Johnson said. “We watch a lot of stocks, and when there is one ‘turning the corner,’ i.e. after a decline it shows the attributes of breaking higher or shows some other setup that can deliver a rapid gain, we issue the alert for the play.”

Two highly profitable trades closed earlier this month. The one in China’s Nano Labs Ltd. (NASDAQ: NS) produced a gain of 44.91% in 249 days.  The chart of NA below reflects the recent volatility in China’s beaten-down market.

Another double-digit percentage trade came from Cerus Corp. (NASDAQ: CERS), a biotechnology company in Concord, California. The stock jumped 10.23% in three days, leading Johnson to advise his subscribers to take their profits.

Chart courtesy of www.stockcharts.com

“One of my phrases is we ‘take what the market gives,’” Johnson said. “That is a good principle to apply to any market because it puts you into the correct mindset to profit. In a strong trend, higher or lower, it is easy: you find great technical patterns with the right attributes such as strong accumulation or distribution, a logical target such as a gap point, a prior high or low, and a trendline. You buy in, you let it work, you take the gain.

“When the market is volatile – choppy as I like to call it – it is not so easy and that is where many stumble. You have to adjust your mindset to what is possible in that particular market. If you approach that market with the ‘take what the market gives’ mindset, you immediately adjust your criteria. You don’t demand less from plays, you demand more: clear entries, clear targets, quick entries and quick exits.”

Another advocate of option trading is Hugh Grossman, who leads DayTradeSpy’s Trading Room. Buying a stock produces a dividend payout worth a cup of coffee, but an option can give an investor much more, for so much less, he told me.

Hugh Grossman leads DayTradeSpy’s Trading Room.

“If you spend the $469 on options – two call contracts – a 3-cent move on the calls will yield $6, which should be able to get you a donut, such as a cruller, and a coffee,” Grossman said.

Geopolitical Risk Returns

Geopolitical risk seems to keep rising. The United States is embroiled in politics as shown by an all-night session when the U.S. Senate voted 70-29 early Tuesday morning, Feb. 13, to approve a $95 billion national security supplemental package with aid for Ukraine, Israel and Taiwan. The bi-partisan approval occurred despite attempts by dissenters to deny the funding.

Certain Democrats opposed the proposal due to the loss of more than 28,000 lives in Gaza following the Oct. 7 attack of Hamas in Israel that killed 1,200 people, as well as the abduction of about 250 others. That led to an ongoing military response to stop the aggressors. Republicans who objected to the foreign aid aimed their opposition at a lack of funding to protect the U.S. border from migrants crossing from Mexico to America illegally. Before providing help to Ukraine, Israel and Taiwan, those lawmakers sought to secure the U.S. border first.

House Speaker Mike Johnson said he will not bring the supplemental foreign aid package to a vote in the House due to its omission of a border protection proposal that he asked to be included. Democrats spoke of trying to force a vote on the measure.

“The House acted 10 months ago to help enact transformative policy change by passing the Secure Our Border Act, and since then, including today, the Senate has failed to meet the moment,” Speaker Johnson said.

The U.S. House voted 214-213 on Tuesday, Feb. 13, to impeach Homeland Security Secretary Alejandro Mayorkas, with the Republican majority seeking to hold him accountable for the Biden administration failure to control waves of migrants entering the United States illegally from the Mexican border. Secretary Mayorkas narrowly became the first cabinet member to be impeached in nearly 150 years.

For investors seeking to obtain income from options and dividend-paying stocks, the Investment House Daily, Pick of the Week, Technical Trader and Rapid Profits Stock Trader services led by Johnson combine to provide ways to do so.

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Three dividend-paying gold funds to purchase for income and potential share price appreciation are gaining attention.

BofA Global Research is among the investment firms that are forecasting a rise in gold prices during the second half of 2024. The three dividend-paying gold funds to purchase are expected to climb if the Federal Reserve cuts interest rates later this year.

Gold also can serve as a hedge against geopolitical risks. Such threats to peace have occurred from Russia’s expanded invasion of Ukraine and the Oct. 7 attack and murder of 1,200 civilians in Israel and more than 100 others later died from injuries related to the attack. In addition, Hamas militants kidnapped 250 others, as well as committed rapes and sexual violence in starting a war in the Middle East that has led to 27,585 deaths in Gaza, as well as the wounding of nearly 67.000 people.

Gold traditionally performs well during geopolitical upheaval, inflation and U.S. dollar depreciation, so the precious yellow metal often is bought as insurance during tumultuous times. Gold is viewed in many parts of the world as a way to shield savings from a possible bank crisis or even government confiscation of traceable personal assets in certain countries. Plus, a recent report by BMO Capital Markets found that the price of gold is no longer driven by real interest rates.

Courtesy of www.StockRover.com. Learn about Stock Rover by clicking here.

Three Dividend-paying Gold Funds to Purchase for Income: Bullish Forecasts

Many investment firms are recommending the purchase of gold, wrote Frank Holmes, the chief executive officer and chief investment officer of U.S. Global Investors (NASDAQ: GROW), a provider of eight no-load funds and two exchange-traded funds that feature precious metals, natural resources and emerging markets. One example is XIB Asset Management, a Canadian hedge fund that soared over 200% in the first two years of the pandemic, and forecasts that gold and uranium will outperform the market if the Fed cuts rates.

That view may seem counterintuitive, especially with rates still above 5% and the stock market at an all-time high, but analysts at JPMorgan forecast that the precious metal will benefit later this year from Fed rate cuts and heightened demand for the shiny asset.

Significantly, the active month gold futures contract for the most volume/open interest, closed last Dec. 1 at an all-time of $2,091.70 per ounce, a comfortable $16 per ounce break above the prior all-time record close of $2,075.20 per ounce on August 6, 2020, Jim Woods wrote to subscribers of his January 2024 Successful Investing newsletter. However, the breakout to new highs occurred as the active month futures contract was rolling forward from the December 2023 contract to the February 2024 contract. Secure storage costs result in higher back month futures prices, Woods explained.

“The recent volatility in the yellow metal has resulted in gold becoming a popular investment topic,” Woods opined.


Jim Woods, a former U.S. Army paratrooper, who leads Successful Investing and co-heads Fast Money Alert.

Three Dividend-paying Gold Funds to Purchase for Income: GDX

The VanEck Gold Miners ETF (NYSE ARCA: GDX) became the first gold miners exchange-traded fund in the United States when it launched in 2006. GDX seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), a pure-play, global index intended to track the performance of the largest publicly traded companies in the gold mining industry.

Gold miners feature companies whose primary business activities are exploring, extracting and refining the precious yellow metal. Keep in mind that risks in gold mining include the length of time and expense of bringing the precious metal out of the ground and to the market.

The largest holdings in GDX focus on major gold miners that tend to be less volatile and more mature in their business cycle than their smaller peers. These major gold-mining companies tend to be well-capitalized, have vast industry experience and international operations.

For GDX, its biggest holdings and their weighting in the fund’s portfolio are Newmont Corp., 13.08%; Barrick Gold Corp., 8.86%; Agnico Eagle Mines Ltd., 7.94%; Franco-Nevada Corp., 7.10%; and Wheaton Precious Metals Corp., 7.08%. Canada is the country that accounts for the lion’s share of the fund’s net assets with 40.96%, followed by the United States, 18.11%, Australia, 11.94%; South Africa, 10.36%; and Brazil, 7.02%.

The emphasis on major gold mining companies avoids the risk endured by many new and small mining companies that may be unable to endure the time required to produce materials and refine them. On average, it takes more than 20 years before a mine reaches production.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Gold Funds to Purchase for Income: NUGT

The Direxion Daily Gold Miners Index Bull and Bear 2X Shares seek daily investment results, before fees and expenses, of either 200% of the upside or 200% of the downside, respectively, of the performance of the NYSE Arca Gold Miners Index.

The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies that operate globally in developed and emerging markets. The companies are primarily engaged in mining for gold and, to a lesser extent, in mining for silver. The Index will limit the weight of companies whose revenues are more significantly exposed to silver mining to less than 20% of the Index at each rebalance date.

With many analysts and investment firms forecasting that forecasts that gold, the bullish strategy appears most relevant for the next 12 months. The bullish ETF is Direxion Daily Gold Miners Index Bull 2X Shares (NYSE ARCA: NUGT). The ETF to use to profit is gold mining stocks fall is Direxion Daily Gold Miners Index Bear 2X Shares (NYSE ARCA: DUST. The following cautionary words pertain to both strategies.

Leveraged and inverse ETFs pursue daily leveraged investment objectives that are riskier than alternatives which do not use leverage. These riskier funds seek daily goals and should not be expected to track the underlying index over periods longer than one day. As a result, they are not suitable for all investors and should be used only by those who understand the risk and actively manage their investments.

The largest holdings and their weighting in the index are Newmont Corp., 14.23%; Barrick Gold Corp., 9.47%; Agnico Eagle Mines Ltd., 8.09%; Wheaton Precious Metals Corp., 6.67%; Franco-Nevada Corp., 6.35%. Canada accounts for nearly half the net assets in the index, with 49.47%. The United States is second with 20.12%, Australia, 11.35%; South Africa, 6.20%; and the United Kingdom, 5.50%.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Gold Funds to Purchase for Income: RING

A third dividend-paying gold fund to purchase for income is the iShares MSCI Global Gold Miners ETF (NASDAQ: RING), which seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of gold mining. RING is another dividend-paying ETF that aims to focus on the largest mining stocks.

The largest holdings in RING differ somewhat from those of GDX and NUGT. RING’s top holdings also feature Newmont, with 18.84% of the portfolio. The next biggest holdings and weightings are Barrick Gold Corp., 12.63%; Agnico Eagle Mines Ltd., 11.11%; and Gold Fields Ltd., 4.83%.

Chart courtesy of www.stockcharts.com

Regardless of what dividend-paying gold ETF an investor may prefer, others also are looking into buying the precious yellow metal. Confirmation of rising interest in gold comes from a new survey that found the most searched personal investment in the United States is the precious metal. Gold has amassed an average monthly search volume of 1,191,827.

Indeed, gold is a commodity that trades based on supply and demand; the ratio between supply and demand determines the price of gold at the time of the investment, the survey found.

With the elevated interest rates and the continual concerns of a recession in the United States, gold can be a reliable long-term investment and outperform other assets such as properties and different equities since it is easier to liquidate, the survey researchers wrote. There are also tax advantages in gold investments, since prices of the precious metal jumped considerably in 2023 and have shown staying power compared to other markets.

Three Dividend-paying Gold Funds to Purchase for Income: Top Holding

All three of the dividend-paying gold ETFs to purchase hold Denver, Colorado-based Newmont Corporation (NYSE: NEM), the world’s leading gold company, as their largest position. Newmont not only produces gold but also silver, copper, zinc and lead.

The company, the only gold producer listed in the S&P 500 Index, has its mining assets in “favorable” places in Africa, Australia, Latin America & Caribbean, North America and Papua New Guinea, according to its website. Newmont is among many precious metals mining stocks whose share prices fell by double-digit percentages during the past 12 months.

Woods and his partner Mark Skousen, PhD, a Presidential Fellow at Chapman University, co-head the Fast Money Alert trading service that produced a 22.71% return for their subscribers by recommending Newmont slightly longer than two months between March and May 2020. Fast Money Alert also turned a profit of 58.33% by advising subscribers to buy Newmont call options in January 2015 before recommending their sale roughly three weeks later. Skousen, a scion of Ben Franklin who sometimes impersonates his Founding Father ancestor, also has led the Forecasts & Strategies investment newsletter for the past 44 years.


Mark Skousen, leader of Forecasts & Strategies and co-head of Fast Money Alert, talks to Paul Dykewicz.

Skousen wrote in his February 2024 Forecasts & Strategies investment newsletter that gold remains above $2,030 an ounce. Skousen continued that he expects gold to rise in the next year.

Chart courtesy of www.stockcharts.com

Another fan of Newmont as a turnaround opportunity is Michelle Connell, president and owner of Dallas-based Portia Capital Management, LLC. But mining stocks carry risks, she added.

Despite the availability of investing directly in gold mining companies that are publicly traded, they can be “very volatile,” Connell counseled. Such gold mining stocks may fall with the whims of the stock market, as well as face geopolitical threats that can disrupt gold production in certain countries, she added.

Michelle Connell leads Dallas-based Portia Capital Management.

“If someone is an investor who wants access to physical gold, they’re going to pay in excess of $2,000 an ounce,” Connell said. “That is not convenient for most individual investors.”

The stock is selling at its lowest price-to-earnings (P/E) in five years at 15.30 x forward earnings, Connell told me. Newmont’s average P/E is 25, she added.

Income lovers will appreciate Newmont’s dividend yield of 4.65% that is supported by strong free cash flow estimated at $3.7 billion for 2024 and $4.5 billion for 2025, Connell continued.

Currently, NEM’s “all-in” cost of production for gold is $1,400 per ounce. With gold selling at close to $2,000 per ounce, NEM has strong profitability, Connell stated.

With gold estimated to rise to $2,500 per ounce, Newmont’s profit margin could go higher. The company is scheduled to report financial results on Feb. 22.

“Given it is short-term downward trend, I would dollar-cost average into a position over the course of the next few months,” Connell counseled. “Several analysts estimate that there is 20-35% upside over the next 12-18 months. I agree with them.”

Three Dividend-paying Gold Funds to Purchase for Income: Pension Leader Perspective

Bob Carlson, a former pension fund chairman who now heads the Retirement Watch investment newsletter, is recommending gold though a trust. In the February 2024 issue of Retirement Watch, Carlson advised his subscribers that gold continues to deliver “solid returns,” even though it had a slow start in the initial weeks of 2024.

“I believe gold’s recent strength is due largely to international tensions and not economic fundamentals, Carlson wrote.


Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

Geopolitical Risks Worsen

In the Middle East, geopolitical risk is rising. The United States has responded militarily to the killing of three American service members in Jordan on Sunday, Jan. 28, by striking sites in Iraq and Syria used by Iranian forces and Iran-backed militants. U.S. military forces hit targets at facilities involved in attacking U.S. personnel in the region, National Security Council spokesman John Kirby said. The targeted facilities included command and control operations, intelligence centers, rockets and missiles, as well as drone storage sites.

“The United States does not seek conflict in the Middle East or anywhere else in the world, President Biden said. “But let all those who might seek to do us harm know this: If you harm an American, we will respond.”

The Israeli Defense Force (IDF) continues to take out Hamas leaders who are hiding in neighboring Gaza after orchestrating the Oct. 7 attack against civilians in Israel that killed 1,200 people. A potential hostage exchange between Israel and Hamas is under discussion but remains elusive.

Gaza’s Hamas-run Health Ministry reported more than 27,100 people have died there since the Israeli Defense Force (IDF) began a military response to the Oct. 7 murder of men, women and children living there, along with the kidnapping of around 250 people from Israel to the Gaza Strip. In addition, the Hamas Health Ministry reported more than 65,000 people have been wounded in Gaza since the Oct. 7 invasion of Israel.

With world leaders expressing concern about the deaths and escalating violence in the region, the International Court of Justice ordered Israel on Friday, Jan. 26, to limit deaths and damage but did not demand a cease-fire in the Palestinian territory.

A lasting peace remains uncertain in the Middle East where militant groups like Hamas in Gaza have a goal of annihilating Israel and killing its people. Based on reports from the Hamas-run Health Ministry and other sources, more than 90,000 people have been killed or injured since Hamas militants sparked the latest war in the Middle East with its Oct. 7 attack. The Hamas infiltration of Israel caused the IDF to respond militarily to try to end the threat rather than await the next one without seeking to stop further incursions.

The three dividend-paying gold funds to purchase for income offer a hedge against geopolitical risk as wars are worsening in multiple parts of the world.

P.S. We are excited to invite you to a free, live webinar with George Gilder on Thursday, Feb. 15, at 10 am Eastern Standard Time. In this Startup Investing Masterclass, George is teaming up with Jon Medved, the founder of OurCrowd, to discuss investing in private placements. George and John Schroeter from Gilder’s Private Reserve will be interviewing the CEO of George’s latest AI startup pick… so you’ll be receiving a great startup pick just by attending! Click here now to attend this amazing event.

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Three dividend-paying gold stocks to consider purchasing feature companies whose share prices have dropped significantly in the past year but could rebound in the next 12 month.

BofA Global Research is forecasting a rise in gold prices during the second half of 2024 that could reward patient investors. The three dividend-paying gold stocks to consider purchasing may climb as geopolitical risks mount due to Russia’s intensified invasion of Ukraine and the Oct. 7 attack and murder of 1,200 civilian in Israeli at the hands of Hamas militants that began a war in the Middle East.

Gold traditionally performs well during geopolitical upheaval, inflation and U.S. dollar depreciation, so the precious yellow metal often is purchased as insurance during tumultuous times. Gold is regarded in many parts of the world as a way to shield savings from a possible bank crisis or even government confiscation of traceable personal assets in certain countries. In addition, a new report by BMO Capital Markets suggests that the price of gold is no longer driven by real interest rates.

Courtesy of www.StockRover.com. Learn about Stock Rover by clicking here.

Several investment firms are recommending the purchase of gold, wrote Frank Holmes, the chief executive officer and chief investment officer of U.S. Global Investors (NASDAQ: GROW), a provider of eight no-load funds and two exchange-traded funds that feature precious metals, natural resources and emerging markets. One example is XIB Asset Management, a Canadian hedge fund that soared over 200% in the first two years of the pandemic, and now expects that gold and uranium will outperform if rates are cut.

That view may seem counterintuitive, especially with rates still above 5% and the stock market at an all-time high, but analysts at JPMorgan forecast that the metal will benefit later this year from Fed rate cuts and heightened demand for the shiny asset.

Three Dividend-paying Gold Stocks to Consider Purchasing: BTG

Canada’s B2Gold (NYSE AMERICAN: BTG) (TSX: BTO), a low-cost international senior gold producer headquartered in Vancouver, British Columbia, offers the best dividend yield of any miners engaged in the exploration and extraction of the precious yellow metal. Founded in 2007, B2Gold operates gold mines in Mali, Namibia and the Philippines, has a mine under construction in northern Canada and is pursuing development and exploration projects in countries such as Mali, Colombia and Finland.

Despite the company’s major pullback in price during the past 12 months, it announced positive exploration drilling results on Jan. 31 from its Antelope deposit at the Otjikoto Mine in Namibia. The Antelope deposit, comprised of the Springbok Zone, the Oryx Zone and a possible third structure, Impala, is approximately three kilometers south of the Otjikoto Phase 5 open pit. The Antelope deposit could be developed as an underground mining operation, which could complement the expected processing of stockpiles at the Otjikoto mill from 2026 through 2031.

B2Gold drilled 37 holes of roughly 20,715 meters at the Antelope deposit in 2023, with a plan to nearly double the meters drilled in 2024. Discovered in 2022 using deep drill testing on three-dimensional models of magnetic inversion data, the Antelope deposit will receive most of B2Gold’s US9 million 2024 exploration budget for Otjikoto.

In 2023, B2Gold completed a US$3.3 million exploration program in Namibia, with exploration drilling focused on its ML169 mining license that Otjikoto. The majority of that drilling targeted the high-grade gold mineralization of the Antelope deposit, the company reported.

As the drilling expenses indicate, B2Gold is spending millions of dollars a year to explore and find new mines to propel its growth. The company’s share price dropped 29% in the past year, so investors so far have not seen progress to bid the shares upward.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Gold Stocks to Consider Purchasing: HL

Hecla Mining Company (NYSE:HL), a Coeur, d-Alene-based producer of silver, zinc and gold, has incurred a stock price drop of 39% in the past year but has some positive developments ahead. An update will occur when Hecla releases its fourth quarter and full-year 2023 operational and financial results after the market close on February 14, 2024.

One emerging opportunity is increasing interest in renewable energy. Silver, zinc, and other metals are needed across the supply chain for the renewable energy sector.

Renewable energy, electric vehicles and innovations in battery technology are critical to meet goals for a reduced carbon future, Hecla officials said. Demand for responsibly sourced metals is growing, and Hecla plans to help deliver what is needed, they added.

The drive to decarbonize relies increasingly on silver. The precious metal has the highest electrical and thermal conductivity compared to any alternative, and it is vital in producing renewable energy and electrical vehicle components, Hecla’s leaders explained.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Gold Stocks to Consider Purchasing: FNV

A gold royalty company that Mark Skousen, PhD, has recommended profitably twice in the past is Franco-Nevada Corp. (NYSE: FNV), of Toronto. His most recent profitable trade occurred in the Fast Money Alert trading service that he partners with stock picker Jim Woods to lead. That recommendation between December 2022 and May 2023 produced a return of 5.68%.


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


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Mark Skousen, PhD, a Presidential Fellow and scholar at Chapman University, wrote in his February 2024 Forecasts & Strategies investment newsletter that gold remains $2,030 an ounce. Skousen continued that he expects gold to rise in the next year.

FNV offers a large and diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation.

Franco-Nevada is navigating a problem with its mine in Panama that it operates with a partner, First Quantum Minerals Ltd. The Cobre Panama mine currently remains in a phase of preservation and safe maintenance with production halted. As a result of the current suspension of operations, Franco-Nevada is conducting an impairment analysis and plans to disclose the findings in its 2023 year-end financial statements.

First Quantum has provided an update about its position regarding the next steps required for the responsible environmental stewardship of the Cobre Panama mine site. In addition, First Quantum announced it intends to pursue all appropriate legal avenues to protect its investment and rights. In turn, Franco-Nevada plans to pursue all appropriate legal avenues to enforce its rights and protect its investment in Panama.

The uncertainty is a drag on Franco-Nevada’s share price. However, Franco-Nevada announced on Tuesday, Jan. 30, that its Board of Directors raised its quarterly dividend to US$0.36 per share payable on March 28, 2024, to shareholders of record on March 14, 2024. The increased dividend will be effective for the full 2024 fiscal year. The 5.88% increase from the previous US$0.34 per share quarterly dividend marks the 17th consecutive annual increase for Franco-Nevada shareholders.

Gold royalty companies have less risk than mining companies. The bulk of its revenue comes from gold, silver and platinum. The company does not directly develop mining projects or conduct exploration and drilling. Partly due to the shutdown of the mine in Panama, Franco-Nevada’s share price has fallen 25.5% in the past year, 14.09% in the last three months and 1.67% in the past week.

There is no rush to buy the shares before Franco-Nevada provides an update in its 2023 10-k about the status of the mine in Panama. If the mine is restored to operation, the financial prospects of Franco-Nevada should be much improved.

Chart courtesy of www.stockcharts.com

Gold Coins May Appeal to Investors

Aside from recommending gold stocks, precious metal coins and funds offer alternatives. Consider purchasing gold and silver coins from a reliable dealer, such as Van Simmons of David Hall Rare Coins, of Santa Ana, California.

By far the best value in holding physical gold would be the older pre-1934 gold $20 Liberties and Saint Gaudens, Simmons advised. For the last seven or eight years, there has been a big influx of the importation and repatriation of the coins back to the United States from foreign lands, Simmons added.

“If you just look at the extra fine grade $20 Liberties — struck from 1850 to 1907 — for the last 40 years or so, they have always had a big premium on them, Simmons said. “It typically ranged from 75% to 125% over the spot price of the spot price of gold.”

Dividend-paying Gold Funds Offer Another Alternative 

Woods recommends a gold fund for subscribers of his Successful Investing investment newsletter. That position is profitable, and Woods is encouraging his Successful Investing subscribers to hold onto it for further potential gains.

Bob Carlson, a former pension fund chairman who now heads the Retirement Watch investment newsletter, is recommending gold though a trust. In the February 2024 issue of Retirement Watch, Carlson advised his subscribers that gold continues to deliver “solid returns,” even though it had a slow start in the initial weeks of 2024.

“I believe gold’s recent strength is due largely to international tensions and not economic fundamentals, Carlson wrote.


Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

“If I’m going to own a gold fund, it is going to be a fund that’s 100% backed by the physical metal,” said Michelle Connell, president and owner of Dallas-based Portia Capital Management, LLC.

Despite the availability of investing directly in gold mining companies that are publicly traded, they can be “very volatile,” Connell counseled. Such gold mining stocks can fall with the whims of the stock market, as well as face the ill effects of geopolitical threats that can disrupt gold production in certain countries, she added.

Michelle Connell leads Dallas-based Portia Capital Management.

“If someone is an investor who wants access to physical gold, they’re going to pay in excess of $2,000 an ounce,” Connell said. “That is not convenient for most individual investors.”

An exchange-traded fund (ETF) would make more sense since it is “economically accessible,” Connell continued. If an investor needs to get in and out of gold quickly, an ETF allows purchases and sales inter-day, she added.

Perth Mint/Asset Strategies International Provide Another Path

Another path to invest in gold is offered by Rich Checkan, president and chief operating officer of Asset Strategies International, a full-service, tangible asset dealer in Rockville, Maryland, close to where I live. Asset Strategies International offers precious metals, pre-1933 U.S. gold and silver coins, as well as world and ancient coins.

For investors who seek to buy precious metals, Checkan said “one of the safest” ways to do so is through the Perth Mint Depository Distributor Online (PMDDO) program. This program enables investors to buy and sell gold, silver and platinum securely and directly online seven days a week and 24 hours a day at some of the lowest premiums in the industry, Checkan added. The precious metals also can be stored, in some cases, for free at the Perth Mint.

“Just like investors can log into their brokerage account and buy and sell ETFs, investors can do the same with their PMDDO account,” Checkan said.

Once logged into an account, investors see both their live cash and bullion balance, and have the option to purchase, sell, or withdraw their metals. When clients make a purchase or a liquidation through the program, the metals are automatically added to or withdrawn from their account. Clients who want to take delivery of their metals should receive their shipment within 10 business days.

“Looking at the worst case for the PMDDO, there is a 1% premium to gold or silver when buying and a 1% discount to gold or silver when selling at the minimum transaction of $50,” Checkan said.

Aside from a straight price comparison, the Perth Mint program helps to mitigate the risks of liability, security and delivery, Checkan continued. The world’s only government guarantee provides Perth Mint clients a uniquely safe storage option, Checkan added.

“All in all, PMDDO is the clear winner when compared to other forms of physical precious metals ownership,” Checkan said. “When compared to ETFs, it compares quite well, but delivers so much more aside from premium.”

Rich Checkan, president and chief operating officer of Asset Strategies International.

Geopolitical Risks Worsen

In the Middle East, the United States responded militarily on Feb. 2 to the killing of three American service members in Jordan on Sunday, Jan. 28, by striking 85 sites in Iraq and Syria used by Iranian forces and Iran-backed militants. U.S. military forces hit targets at seven facilities involved in attacking U.S. personnel in the region, National Security Council spokesman John Kirby said. The targeted facilities included command and control operations, intelligence centers, rockets and missiles, as well as drone storage sites.

“Our response began today,” President Joe Biden said in a statement. “It will continue at times and places of our choosing. The United States does not seek conflict in the Middle East or anywhere else in the world. But let all those who might seek to do us harm know this: If you harm an American, we will respond.”

The Israeli Defense Force (IDF) continues to take out Hama leaders who are hiding in neighboring Gaza after orchestrating the Oct. 7 attack against civilians in Israel that killed 1,200 people. A potential hostage exchange between Israel and Hamas is under discussion but remains elusive.

Gaza’s Hamas-run Health Ministry reported at least 27,100 people have died there since the Israeli Defense Force (IDF) began a military response to the Oct. 7 murder of men, women and children living there, along with the kidnapping of around 250 people from Israel to the Gaza Strip. In addition, the Hamas Health Ministry reported more than 65,000 people have been wounded in Gaza since the Oct. 7 invasion of Israel.

The IDF successfully carried out a raid at a hospital in Gaza on Monday, Jan. 30, where a Hamas leader was located. That leader and two other Hamas militants at the hospital were killed by Israeli forces.

With world leaders expressing concern about the deaths and escalating violence in the region, the International Court of Justice ordered Israel on Friday, Jan. 26, to limit deaths and damage but did not demand a cease-fire in the Palestinian territory.

A lasting peace remains uncertain in the Middle East where militant groups like Hamas in Gaza have a goal of annihilating Israel and killing its people. Based on reports from the Hamas-run Health Ministry and other sources, more than 90,000 people have been killed or injured since Hamas militants sparked the latest war in the Middle East with its Oct. 7 attack. The Hamas infiltration of Israel caused the IDF to respond militarily to try to eliminate the threat rather than await the next one without attempting to stop further incursions.

The three dividend-paying gold stocks to consider purchasing offer income and financial refuge from geopolitical risk as wars worsen in different regions of the world.

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. Attention Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Four dividend-paying uranium investments to consider purchasing have dipped in price lately to offer what could become a fresh chance to profit.

The four dividend-paying uranium investments to consider purchasing have risen along with the commodity’s physical price that recently reached $106 per pound, the highest level since 2007 when the chemical element used in fueling nuclear energy hit its all-time peak of $136 per pound in June of that year. Uranium prices spiked briefly in 2007 when enthusiasm for nuclear energy erupted and the world’s biggest mine for the metal flooded, shrinking supply.

The price per pound has jumped 147% since Russia’s invasion of Ukraine in February 2022. In 2023, the price of uranium oxide concentrate, U308, also known as yellowcake, soared 90% as demand spiked amid limited supply.

Four Dividend-paying Uranium Investments to Consider Purchasing Amid Limited Supply

Aside from uranium supply chain challenges, other reasons for growing interest in the commodity include nuclear expansion plans around the world and geopolitical tensions with Russia’s continuing invasion of Ukraine and the breakout of a war in the Middle East touched off by a horrific Hamas attack of Israel on Oct. 7 that killed roughly 1,200 people. Those factors combine to keep upward pressure on uranium prices.

Israeli Defense Forces (IDF) responded to the terrorist act by entering neighboring Gaza where the militants had originated when they infiltrated Israel to murder, rape and terrorize its citizens before taking an estimated 250 hostages from their homeland. Iran-backed groups in Lebanon, Syria, Iraq and Yemen that support the Palestinians have subsequently fired upon Israel to widen the conflict that has caused more than 26,000 deaths in Gaza since Oct. 7.

Courtesy of www.StockRover.com. Learn about Stock Rover by clicking here.

Even though certain uranium mining operations have restarted and several resumed production, supply still needs time to ramp up. BofA Global Research forecasts that current uranium supply-and-demand imbalances will persist with deficits projected through the rest of 2024.

Four Dividend-paying Uranium Investments to Consider Purchasing: URA

Global X Uranium ETF (URA) has amassed nearly $900 million of investment inflows in the past 24 months compared to more than $1.3 billion in outflows from a popular clean energy fund, iShares Global Clean Energy ETF (ICLN), BofA wrote in a recent research note. Nuclear power is cleaner, cheaper and safer than “renewable” energy sources, the report added.

An advocate of uranium investments in the past year has been Mark Skousen, PhD, a free-market economist who has headed the Forecasts & Strategies investment newsletter for the last 44 years. Skousen not only has helped subscribers of his newsletter to profit from uranium, but he also has shared winning recommendations in his premium trading services TNT Trader and Fast Money Alert.

Skousen’s Forecasts & Strategies subscribers were able to scoop up a profit of more than 10.32% in just 122 days, while buyers of his TNT Trader service only needed 98 days to notch returns of 39.94% in stock and 243.33% in option trades of uranium. Since 2018, uranium prices have outperformed other hard assets, including gold, Skousen wrote to his subscribers.

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

Bryan Perry, a Wall Street veteran who heads the Cash Machine investment newsletter and its Premium Income Pro and Quick Income Trader services, used options to help his subscribers notch profits in URA. Perry’s option trade recommendations produced gains of 8.35% in Premium Income Pro and 23.55% in Quick Income Trader in five weeks and 10 weeks, respectively.


Bryan Perry heads Cash Machine, with a double-digit-percentage dividend yield.

A global environmental conference in the United Arab Emirates, held last Nov. 30 to Dec. 12, addressed the effects of climate change and efforts to cut greenhouse gas emissions. More than 20 nations, including the United States, France, Japan and the United Kingdom, agreed to triple global nuclear energy generation by 2050.

But uranium prices also are jumping due to a short-term squeeze after Kazatomprom, the world’s biggest uranium miner, warned that it is likely to fall short of its production targets during the next two years.

Four Dividend-paying Uranium Investments to Consider Purchasing: Skousen Seizes Upon Surge

Global X Uranium Fund (URA) is up 6.4 10% so far in 2024 as one of the recommendations in Skousen’s Forecasts & Strategies investment newsletter. URA is an exchange-traded fund that has a diversified portfolio that invests in Cameco (NYSE:CCJ), NexGen Energy (NYSE: NXE), Uranium Energy Corp. (NYSEAMERICAN: UEC), Denison Mines (NYSE: DNN), Paladin Energy (OTCMKTS: PALAF), as well as Energy Fuels (NYSEAMERICAN: UUUU).

“The fund also has an 11% position in physical uranium through the Sprott Physical Uranium Trust,” Skousen wrote to his subscribers. “It will provide greater stability and less risk when it comes to investing in uranium, which I believe has a bright future.”

Bob Carlson, the head of the Retirement Watch advisory service and a former pension fund chairman, also likes Global X Uranium (URA), which seeks to track the Solactive Global Uranium & Nuclear Components Total Return Index. URA recently had 48 positions with 71% of the fund in the 10 largest positions. Top holdings recently consisted of Cameco (NYSE: CCJ), Sprott Physical Uranium Trust Units (OTCM: SRUUF), NexGen Energy (NYSE: NXE), National Atomic Co. Kazatomprom JSC (F:OZQ), and Uranium Energy Corp. (NYSE American: UEC).

URA’s recent dividend yield reached 6.07%. The fund is up 18.34% during the last three months and 37.23% in the past 12 months.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Uranium Investments to Consider Purchasing: NLR

Another uranium ETF to consider purchasing is VanEck Uranium + Nuclear Energy (NLR). The ETF launched in 2007 and aims to replicate the MVIS Global Uranium & Nuclear Energy Index. NLR recently had 26 positions, and 57% of its holdings were in the 10 largest positions.


Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

Top NLR holdings at press time were PG&E (PCG), Public Service Enterprise Group (PEG), Constellation Energy (NASDAQ: CEG), Cameco and Paladin Energy (OTC: PALAF).

The fund’s dividend yield recently reached 4.56%. NLR is up 4.04% in the last month, 12.53% over three months and 35.36% during the past year.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Uranium Investments to Consider Purchasing: CCJ

Cameco Corp., of Saskatoon, Saskatchewan, is one of the world’s largest uranium producers. Its flagship McArthur River mine in Saskatchewan accounts for roughly 50% of its output in normal market conditions.

The pure-play uranium producer also operates uranium conversion and fabrication facilities. Plus, the company holds uranium reserves estimated to weigh more than 464 million pounds.


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Demand for uranium is surging, with nuclear power proving to be an efficient, carbon-free source of energy that is gaining a reputation as safe and clean, Skousen and his partner Jim Woods wrote to their subscribers in the Fast Money Alert trading service.

“Let’s take advantage of this fission-fueled price spike,” the duo advised their Fast Money Alert subscribers last fall. They told their subscribers to take profits of about 5% slightly more than two months later.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Uranium Investments to Consider Purchasing: CW

Curtiss-Wright Corp. (NYSE: CW), a diversified manufacturing company headquartered in Davidson, North Carolina, supplies key equipment for Boeing and Airbus aircrafts, defense products and nuclear energy plants.

Curtiss-Wright is showing growth in its nuclear energy business, wrote Louie DiPalma, an aerospace analyst with Chicago-based investment firm William Blair. The Infrastructure Bill (IIJA) and Inflation Reduction Act included roughly $36 billion aggregate dollars to be spent in facilitating nuclear reactor life extension and maintenance activities, for which Curtiss-Wright directly provides services, he added.

“We expect nuclear to be the largest source of growth for Curtiss-Wright over the next five years with construction in Eastern Europe over the next several years and the commercialization of small modular reactors (SMRs) by 2027-2028,” DiPalma opined.

As for the CW aerospace business, the Boeing 737 MAX is currently producing at a rate of 31 per month and aims to transition to 38 per month for 2024 and seeks to reach roughly 50 per month in 2025-2026. While the 50 per month is lower than the prior expectation of 57 per month, Boeing inked a partnership agreement with key supplier Spirit AeroSystems (NYSE:SPR) in late 2023, boosting the likelihood that it can reach and potentially exceed that target, wrote DiPalma.

“Coming out of the pandemic, the commercial aerospace segment has been performing very well and should continue with that trend,” wrote DiPalma, who rates SPR as “outperform.”

Curtiss-Wright also is involved in the defense business. Heightened geopolitical tensions in Ukraine, Taiwan, and Israel should drive continued growth from the rearming of U.S. allies, DiPalma wrote. In late 2023, the Biden administration provided a $100 billion aid package to support Israel and Ukraine. That commitment, along with an increased defensive presence, should aid Curtiss-Wright, as funding increases spur heightened production of aviation, maritime and ground vehicles, DiPalma added.

Since the Russia-Ukraine War began in February 2022, total defense revenue collected by CW has “grown quite well,” DiPalma wrote. He forecast CW defense revenue growth at 10% in 2023 and 6.5% in 2024.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Uranium Investments to Consider Purchasing:  Growing Geopolitical Risk

Geopolitical risk appears to be rising, based on escalating attacks in the world’s hot spots. However, Ukraine President Volodymyr Zelensky gained a pledge of military supplies from Poland and its recently elected Prime Minister Donald Tusk during a meeting in Kyiv, Ukraine, on Monday, Jan. 23. It marked Tusk’s first visit to a foreign capital since his election in October 2023.

“We had very productive talks in Kyiv with @DonaldTusk about all aspects of Ukrainian-Polish bilateral relations,” Zelensky tweeted. “We appreciate Poland’s unwavering support and the new military aid package for Ukraine, as well as a new form of cooperation aimed at larger-scale purchases for Ukrainian needs: a Polish loan for Ukraine. Prime Minister Tusk and I also discussed opportunities for future joint arms production. I thank Poland for supporting Ukraine.”

The meeting occurred on the same day that Russia launched around 40 missiles of various types in an attempt to evade Ukraine’s air defenses, Zelensky continued.

“We were able to intercept the majority of them, but there were still some hits,” Zelensky reported in a tweet. “Over 200 different objects were damaged: 130 residential buildings, all ordinary houses.”

At last count, 130 people were injured and received assistance. Unfortunately, 18 people were killed, Zelensky reported. The human toll of the attacks may rise as first responders search for additional victims in the rubble, he added.

Four Dividend-paying Uranium Investments to Consider Purchasing: Middle East Mayhem

In the Middle East, the Israeli army reported that 24 of its soldiers were killed in Gaza on Monday, Jan. 23, becoming the deadliest day for its forces since their ground operation began after the brutal Hamas assault on Oct. 7. The death toll included 21 reservists who died in an explosion caused by a rocket-propelled grenade fired by a militant squad to trigger the fatal blast, an Israel Defense Forces (IDF) official said.

The reservists were involved in a mission to allow residents of southern Israel to safely return to their homes after tens of thousands were evacuated following the Hamas attack on Oct. 7. Those reservists were killed in central Gaza close to the kibbutz of Kissufim on the Israeli side of the border, the IDF spokesman said.

Gaza’s Hamas-run Health Ministry reported that 195 Palestinians were killed on the same day. When the 1,200 people killed in Israel on Oct. 7 are added to the more than 26,000 reported dead by Hamas in Gaza, along with about 220 on Jan. 13, the total loss of human life soon will approach 30,000. In addition, the the Hamas Health Ministry reported 64,400 people have been wounded since the Oct. 7 invasion of Israel.

With world leaders expressing concern about the deaths and escalating violence in the region, the International Court of Justice ordered Israel on Friday, Jan. 26, to limit deaths and damage but did not demand a cease-fire in the Palestinian territory.

A lasting peace remains elusive in the Middle East where militant groups like Hamas in Gaza have a goal of annihilating Israel and killing its people. Based on reports from the Hamas-run Health Ministry and other sources, more than 90,000 people have been killed or injured since Hamas militants triggered a new war in the Middle East with its Oct. 7 attack. The Hamas attack focused on civilians in Israel, but the IDF responded militarily to try to eliminate the threat rather than await the next one without attempting to stop further incursions.

The four dividend-paying uranium investments to consider purchasing give investors a chance for temporary refuge from geopolitical risk in a global search for safe places to put their money during war times.

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Four dividend-paying aviation stocks to purchase present alternatives to Boeing (NYSE: BA) in the wake of its quality control problems most recently manifested by a Jan. 5 mid-air malfunction of a 737 MAX 9 when a door plug blew off the Alaska Airlines (NYSE: ALK) plane at 16,000 feet and forced an emergency landing in Portland, Oregon.

Image of damaged Boeing 737 MAX 9 courtesy of the National Transportation Safety Board

The four dividend-paying aviation stocks to purchase offer exposure to an industry benefitting from rising demand for air travel and growing military aerospace needs. These four dividend-paying aviation stocks provide a flight path for investors to diversify their portfolios beyond technology stocks.

In 2023, technology stocks rebounded strongly after a dismal 2022 when they averaged a drop of 33%. Buoyed by its concentration in technology stocks, NASDAQ jumped 43% in 2023 to mark its best performance since 2020.

Former pension fund chairman Bob Carlson, who heads the Retirement Watch investment newsletter, advocates diversification. He cautions that the past year’s big winners such as technology often cannot repeat the success as investors rotate into other sectors.

Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

Four Aviation Stocks to Purchase: Curtiss-Wright

As production rates at Airbus (OTCMKTS: EADSY) and Boeing improve, newer aircrafts generally are infusing an older global fleet industry-wide. Data from the International Air Transport Association, a trade group for the world’s airlines, showed revenue per kilometers in 2023 rose significantly from 2019, but 2024 is more likely to be the year in which domestic and international air travel exceeds pre-pandemic levels.

Curtiss-Wright Corp. (NYSE: CW), a commercial aerospace company headquartered in Davidson, North Carolina, supplies key equipment for Boeing and Airbus aircrafts. As a result, success at Curtiss-Wright is highly correlated to aircraft production rates.

The Boeing 737 MAX is currently producing at a rate of 31 per month and are transitioning to 38 per month for 2024 and seeks to reach roughly 50 per month in 2025-2026. While the 50 per month is lower than the prior expectation of 57 per month, Boeing inked a partnership agreement with key supplier Spirit AeroSystems (NYSE:SPR) in late 2023, boosting the likelihood that it can reach and potentially exceed that target, wrote Louie DiPalma, an aerospace analyst with Chicago-based investment firm William Blair.

“Coming out of the pandemic, the commercial aerospace segment has been performing very well and should continue with that trend,” wrote DiPalma, who rates SPR as “outperform.”

Curtiss-Wright also is involved in the defense business. Heightened geopolitical tensions in Ukraine, Taiwan, and Israel should drive continued growth from the rearming of U.S. allies, DiPalma wrote. In late 2023, the Biden administration provided a $100 billion aid package to support Israel and Ukraine. That commitment, along with an increased defensive presence, should aid Curtiss-Wright, as funding increases spur heightened production of aviation, maritime and ground vehicles, DiPalma added.

Since the Russia-Ukraine War began in February 2022, total defense revenue collected by CW has “grown quite well,” DiPalma wrote. He forecast the company’s defense revenue growth at 10% in 2023 and 6.5% in 2024.

Curtiss-Wright also is displaying growth in its nuclear energy business, DiPalma continued. The Infrastructure Bill (IIJA) and Inflation Reduction Act included roughly $36 billion aggregate dollars to be spent in facilitating nuclear reactor life extension and maintenance activities, for which Curtiss-Wright directly provides services, he added.

“We expect nuclear to be the largest source of growth for Curtiss-Wright over the next five years with construction in Eastern Europe over the next several years and the commercialization of small modular reactors (SMRs) by 2027-2028,” DiPalma opined.

Chart courtesy of www.stockcharts.com

Four Aviation Stocks to Purchase: Heico

Hollywood, Florida-based Heico Corporation (NYSE: HEI), also rated as “outperform by William Blair’s DiPalma, announced on Jan. 16 that its Sunshine Avionics subsidiary entered an exclusive perpetual license and acquired key assets from Honeywell (NYSE: HON) to produce, sell and repair Boeing 737NG and Boeing 777 Cockpit Displays and Legacy Displays. Financial terms for the transaction were not disclosed, but Heico leaders said the acquisition would be accretive to earnings in the year after the transaction’s closing.

Last October, VSE Corporation (NASDAQ: VSEC) established a similar licensing agreement with Honeywell for fuel control systems, with VSE paying $105 million for that transaction. The deals show Honeywell’s plan to divest aerospace assets and licenses to other partners like Heico.

In addition, Heico is still in the process of integrating Wencor into its business, wrote DiPalma. In that deal, Heico paid $2.1 billion for Wencor.

However, Heico’s management previously had expressed an interest in reducing its debt and not focusing on acquisitions within its Flight Support Group, DiPalma wrote in a Jan. 16 research note. The valuation of Heico’s shares that trade at 42 times forward year earnings is below its five-year average of 48 times but at a premium to its peers, DiPalma pointed out.

“We believe the premium to peers is warranted because of Heico’s lower leverage relative to competitors, proven business model and high margins,” DiPalma wrote. “In our view, the biggest risk to Heico shares is another COVID-like pandemic reducing demand for air travel.”

Chart courtesy of www.stockcharts.com

Four Dividend-paying Aviation Stocks to Purchase: Textron

Textron Inc. (NYSE: TXT), of Providence Rhode Island, aims to offer innovative defense, government and aerospace technologies and services. With its focus on defending, protecting and supporting its customers, Textron earned a “buy” rating when Citigroup began to cover it last July.

If a recession is thwarted, the potential upside of Textron’s stock at 15-20% during the next 12 months, said Michelle Connell, president and owner of Dallas-based Portia Capital Management, LLC.

“Given the current volatility and nervousness of the market, I would not take any position until specifics on earnings and some signaling on future orders is given,” Connell counseled. With Textron next reporting financial results on Jan. 24, the wait for such guidance will not be long.


Michelle Connell heads Portia Capital Management LLC.

Due to its mid-cap status, the stock has gained 11% during the past 12 months. Its mid-cap size did not allow it to participate in the large-cap rally, Connell told me.

Textron’s debt-to-equity ratio is about .49. That manageable debt level is important with interest rates high and the possibility of a recession around the corner, Connell told me.

During the past 10 years, Textron has generated an average $1.125 billion in cash flow each year. Another plus is that the stock was included in the Goldman Sachs (NYSE: GS) 2024 conviction list, with a 22% upside estimate, Connell continued.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Aviation Stocks to Purchase: General Dynamics

Reston, Virginia-based General Dynamics (NYSE: GD) is an aerospace stock that DiPalma recommends with an “outperform” rating. The company’s technology division has experienced bookings momentum over the past two quarters that should allow it to continue to notch solid growth despite the loss of a computer hardware system (CHS-6) contract with the U.S. Army last September, DiPalma wrote in a Jan. 11 research note. At the same time, the Gulfstream G700 certification slipped out of the fourth quarter and will pressure fourth-quarter earnings, he continued.

 

“In our view, the G700 delay is related to timing rather than any quality concerns,” DiPalma wrote. “We expect General Dynamics’ shares to have a strong 2024 as supply chain constraints ease.”

General Dynamics has more than 100,000 employees in 70-plus countries. A key business unit of General Dynamics is Gulfstream Aerospace Corporation, a manufacturer of business aircraft. Other segments of General Dynamics focus on heavy mobile military equipment such as Abrams tanks, Stryker fighting vehicles, ASCOD fighting vehicles like the Spanish PIZARRO and British AJAX, LAV-25 Light Armored Vehicles and Flyer-60 lightweight tactical vehicles.

For the U.S. Navy and other allied armed forces, General Dynamics builds Virginia-class attack submarines, Columbia-class ballistic missile submarines, Arleigh Burke-class guided missile destroyers, Expeditionary Sea Base ships, fleet logistics ships, commercial cargo ships, aircraft and naval gun systems, Hydra-70 rockets, military radios and command and control systems. In addition, the company provides radio and optical telescopes, secure mobile phones, PIRANHA and PANDUR- wheeled armored vehicles and mobile bridge systems.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Aviation Stocks to Purchase: Duo Sees Opportunity

A pair of proponents of aviation and aerospace stocks are Mark Skousen, PhD, and seasoned stock picker Jim Woods. The two-man team heads the Fast Money Alert advisory service. They recently took a profit in their recommendation of Lockheed Martin (NYSE: LMT) in Fast Money Alert. LMT is a alternative way to invest in aviation and aerospace without the drama Boeing will be incurring in the months ahead as regulators look to identify the root cause of the in-flight Boeing 737 MAX 9 emergency and require manufacturing reforms to prevent any recurrence.

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


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Military Aviation Demand Soars Amid Wars

The U.S. military faces an acute need to adopt innovation, to speed implementation of technological gains, to tap into the talents of people in various industries and to step-up collaboration with private industry and international partners to enhance effectiveness, U.S. Joint Chiefs of Staff Gen. Charles Q. Brown Jr. told attendees on Nov 16 at a national security conference. Prime examples of the need are raging wars in Ukraine and the Middle East, as well as a cold war involving China and its strained relationships with Taiwan and other Asian nations.

The shocking Oct. 7 attack by Hamas on Israel triggered ongoing fighting in the Middle East, coupled with Russia’s February 2022 invasion and continuing assault of neighboring Ukraine. Those brutal military conflicts show the fragility of peace when determined aggressors are willing to use any means to achieve their goals. To fend off such attacks, rapid and effective response is required.

“The Department of Defense is doing more than ever before to deter, defend, and, if necessary, defeat aggression,” Gen. Brown said at the national security conference held at Johns Hopkins University.

A dramatic incident occurred when Russia’s 360-foot-long Novocherkassk war ship was damaged on Dec. 26 by a Ukrainian attack on a Black Sea port in Crimea. This video shows the ship exploding at the port when struck by aircraft-guided missiles.

Chairman Joint Chiefs of Staff Gen. Charles Q. Brown, Jr.
Photo By: Benjamin Applebaum

National security threats can require immediate action, Gen. Brown said he quickly learned since taking his post on Oct. 1.

“We may not have much warning when the next fight begins,” Gen. Brown said. “We need to be ready.”

In a pre-recorded speech, Michael R. Bloomberg, founder of Bloomberg LP, told the John Hopkins attendees of a critical need for collaboration between government and industry.

“Building enduring technological advances for the U.S. military will help our service members and allies defend freedom across the globe,” Bloomberg remarked before the National Security Innovation Forum at the Johns Hopkins University Bloomberg Center.

Michael Bloomberg, philanthropist and founder of Bloomberg L.P.

The “horrific terrorist attacks” against Israel and civilians living there on Oct. 7 underscore the importance of that mission, Bloomberg added.

The four dividend-paying aviation stocks to purchase provide alternative paths to profit than technology stocks that tend to rise and fall faster than other sectors.

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. Attention Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Three aerospace investments to purchase after the emergency of a Boeing 737 MAX 9 provide paths to avoid the worst risk of the fallout from a fuselage door plug blowing out of an Alaska Airlines aircraft at 16,000 feet on Friday, Jan. 5.

The open-ended risk is beyond the control of the Chicago-based Boeing Co. (NYSE: BA), since the Federal Aviation Administration (FAA) announced on Jan. 12 that it would launch heightened oversight of the aircraft company’s production and manufacturing. The actions followed just one day after the FAA formally notified Boeing that the agency has begun a formal investigation into the company due to the Jan. 5 incident when a door plug on a Boeing Model 737 MAX 9 detached from the left side of the plane and fell into a backyard near Portland, Oregon.

Regulators must assess what corrective action is required to ensure the safety of the flying public. Boeing previously suffered two fatal crashes of Boeing 737 MAX aircraft between 2018 and 2019 due to a technical problem that took time to identify and fix.

Image of damaged Boeing 737 MAX 9 courtesy of the National Transportation Safety Board

FAA Acts to Take Corrective Measures

The FAA announced plans on Jan. 12 to:

  • Audit the Boeing 737 9 MAX production line and its suppliers to evaluate the company’s compliance with its approved quality procedures. The results of the FAA’s audit analysis will determine whether additional scrutiny is necessary.
  • Increase monitoring of Boeing 737 9 MAX in-service events.
  • Assess safety risks around delegated authority and quality oversight, as well as examine options to move such functions under independent, third-party entities.

“It is time to re-examine the delegation of authority and assess any associated safety risks,” FAA Administrator Mike Whitaker said. “The grounding of the 737 9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk. The FAA is exploring the use of an independent third party to oversee Boeing’s inspections and its quality system.”

On Jan. 11, the FAA announced a formal investigation to determine if Boeing failed to ensure completed products conformed to its approved design and were able to allow safe operation in compliance with FAA regulations. To read the FAA’s letter to Boeing about the probe, click here.

On Sunday, Jan. 7, the FAA grounded the 171 Boeing 737 MAX 9 planes that installed door plugs, accounting for most of the roughly 218 Boeing Max 9s in service worldwide. With the FAA’s responsibility to ensure all those aircraft are inspected and safe to resume flying, the time required to return them to service is unknown.

Three Aerospace Investments to Purchase After Emergency of Boeing 737 MAX 9

Investors need to be aware that regulators move at their own pace, without the sense of urgency that typically exists in the private sector to restore a plane to revenue-generating service as soon as possible. Industry analysts generally overestimated how quickly Boeing would recover from its previous 737 MAX aircraft safety problems, so caution is warranted to avert a recurrence.

“Upon receiving the revised version of instructions from Boeing, the FAA will conduct a thorough review,” the agency announced. “The safety of the flying public, not speed, will determine the timeline for returning the Boeing 737-9 Max to service.”

Three Aerospace Investments to Purchase After Emergency of Boeing 737 MAX 9: Avoid Boeing

Boeing is facing a major headwind. The National Transportation Safety Board, as shown in this video, inspected the damaged plane. Four bolts intended to keep the door plug from moving out of alignment were missing, the investigators said. Alaska Airlines and United Airlines (NYSE: UAL) both fly the Boeing 737 MAX 9 and discovered loose bolts in some of their other Boeing 737 MAX 9 planes after the midair emergency spurred inspections.

Part of the investigation will determine whether the bolts had ever been installed, and, if so, how they ended up missing. The matter is financially significant, since roughly 60% of Boeing’s annual revenues come from its Commercial Airplanes manufacturing unit.  Boeing’s stock has plunged in the days following the incident and regulators vow to pursue remedies that may involve the use of third parties as inspectors to maintain quality control.


Chart courtesy of www.stockcharts.com

Three Aerospace Investments to Purchase After Emergency of Boeing 737 MAX 9: Connell’s Correct Call

Chicago investment firm William Blair gave Boeing a buy recommendation last month and affirmed its rating on Jan. 8 amid a drop in the company’s stock price since the 737 MAX 9 incident on Jan. 5. The “terrifying” midair emergency aboard the Alaska Air flight with 171 passengers and four crew members, should not have a “major financial impact” on Boeing unless it happens again, wrote Louie DiPalma, an aerospace analyst at the company.

A less positive outlook for Boeing came from Michelle Connell, president and owner of Dallas-based Portia Capital Management, LLC. She expressed concern about the stock, as I have since it had two Boeing 737 MAX passenger airline crashes on October 29, 2018, and March 10, 2019, respectively. Those accidents caused the deaths of 346 passengers and crew members.

Despite Boeing recently announcing new potential airline orders, Connell said she does not think Boeing is “out of the woods” with its safety issues. The Federal Aviation Administration (FAA) had announced before the Jan. 5 malfunction that the agency will begin further reviews of Boeing 737 MAX planes to determine if they have problems with loose bolts, she added.

The company’s Boeing 737 MAX aircraft have been under scrutiny since before the pandemic and it may take “several years” to put those issues fully in the past, Connell continued.


Michelle Connell heads Portia Capital Management LLC.

Three Aerospace Investments to Purchase After Emergency of Boeing 737 MAX 9: GD

Reston, Virginia-based General Dynamics (NYSE: GD) is an aerospace stock that  DiPalma recommends with an “outperform” rating. The company’s technology division has experienced bookings momentum over the past two quarters that should allow it to continue to achieve solid growth despite the loss of a computer hardware system (CHS-6) contract with the U.S. Army in September, DiPalma wrote in a Jan. 11 research note. At the same time, the Gulfstream G700 certification slipped out of the fourth quarter and will pressure fourth-quarter earnings, he continued.

 

“In our view, the G700 delay is related to timing rather than any quality concerns,” DiPalma wrote. “We expect General Dynamics’ shares to have a strong 2024 as supply chain constraints ease.”

General Dynamics has more than 100,000 employees in 70-plus countries. A key business unit of General Dynamics is Gulfstream Aerospace Corporation, a manufacturer of business aircraft. Other segments of General Dynamics focus on heavy mobile military equipment such as Abrams tanks, Stryker fighting vehicles, ASCOD fighting vehicles like the Spanish PIZARRO and British AJAX, LAV-25 Light Armored Vehicles and Flyer-60 lightweight tactical vehicles.

Chart Courtesy of www.stockrover.com; Click this link to learn about www.stockrover.com.

For the U.S. Navy and other allied armed forces, General Dynamics builds Virginia-class attack submarines, Columbia-class ballistic missile submarines, Arleigh Burke-class guided missile destroyers, Expeditionary Sea Base ships, fleet logistics ships, commercial cargo ships, aircraft and naval gun systems, Hydra-70 rockets, military radios and command and control systems. In addition, the company provides radio and optical telescopes, secure mobile phones, PIRANHA and PANDUR- wheeled armored vehicles and mobile bridge systems.

Chart courtesy of www.stockcharts.com

Three Aerospace Investments to Purchase After Emergency of Boeing 737 MAX 9: LHX

Connell also told me she also likes L3Harris Technologies Inc. (NYSE: LHX), but suggests buying after a pullback that she expects to occur. L3Harris is one of the defense companies most impacted by supply chain constraints, so it is not without risk.

BofA Global Research recently wrote that LHX’s management was able to provide some additional color regarding these supply chain challenges on an earnings call, highlighting that 25% of revenues are recognizable upon delivery as opposed to when costs are incurred. These hurdles, along with other macro headwinds, have amounted to a about a $250 million negative impact to FY22 revenues, BoA’s aerospace analyst Ron Epstein wrote. L3Harris has been able to offset 70% of the associated higher costs, he added.

As far as component shortages, LHX continues to feel the brunt of the impact given its position as a systems integrator, Epstein wrote. At Tactical Communications, one of the business units most impacted within the LHX portfolio, management noted that it can account for approximately 97.5% of the necessary parts on its radios.

However, without all the necessary parts, the radios cannot deliver, and the revenue cannot be recognized in some instances, Epstein explained. The company cited that out of 400 key suppliers, 10 remain on the watchlist, down from 30 in 1Q22.

“Given the persistent supply chain challenges that have shown little sign of fading, BofA  downgrading LHX to Neutral and lowering our PO to $250 from $285,” Epstein wrote.

Bargain hunters should be able to buy LHX at a reduced price from current levels as the risk of a recession causes down days in the market. Those who watch it closely can pounce when their personal risk tolerance allows them to do so.

Chart courtesy of www.stockcharts.com

Three Aerospace Investments to Purchase After Emergency of Boeing 737 MAX 9: PPA

An aerospace fund to avoid for now is iShares US Aerospace & Defense (ITA). The fund has the lowest fees among its peers, but has the worst performance compared to the other two, said Bob Carlson, a former pension fund chairman who heads the Retirement Watch investment newsletter.


Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

ITA seeks to track the Dow Jones U.S. Select Aerospace and Defense Index but Boeing currently accounts for 18.19% of the ETF’s portfolio. A fund that he likes instead is Invesco Aerospace & Defense ETF (PPA). Like ITA, PPA is overweight toward industrials, while underweight toward technology and consumer cyclicals, said Carlson, who personally makes his own recommendations in Retirement Watch .


Chart courtesy of www.stockcharts.com

PPA recently held 52 securities and 53.2% of the fund was in its 10 largest positions. With so many holdings, the fund offers reduced risk compared to buying individual stocks. The biggest positions in the fund recently were Boeing (NYSE: BA), RTX Corp. (NYSE: RTX), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Electric (NYSE:GE). The fund’s currrent dividend yield is 0.7%.

PPA has the best “risk-reward profile,” compared to similar defense funds, said Connell.


Michelle Connell heads Portia Capital Management LLC.

One of the reasons that PPA outperforms its peers consistently is that it holds “reasonable weights” of each individual stock, Connell said. PPA’s weightings range from 2% to 6%, she added.

Other Aerospace Investment Opportunities Exist

A pair of proponents of national security stocks are Mark Skousen, PhD, and seasoned stock picker Jim Woods. The two-man team heads the Fast Money Alert advisory service. They already are profitable in their recent recommendation of Lockheed Martin (NYSE: LMT) in Fast Money Alert. LMT is a alternative way to invest in aerospace without the drama Boeing will be incurring in the months ahead as regulators look to identify the root cause of the in-flight emergency and require manufacturing changes to prevent any recurrence.


Mark Skousen, a scion of Ben Franklin, speaks with Paul Dykewicz.


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Military Demand from Wars May Help the Three Aerospace Investments to Purchase After Emergency

The U.S. military must adopt innovation to expedite technological advances, to tap into the talents of people in diverse industries and to foster collaboration with private industry and international partners to enhance effectiveness, U.S. Joint Chiefs of Staff Gen. Charles Q. Brown Jr. told attendees at a recent national security conference. Examples of the need are multiple raging wars, including those in Ukraine and the Middle East, as well as a cold one involving China and its strained relationships with Taiwan and other Asian nations.

The brutal Oct. 7 attack by Hamas on Israel triggered an ongoing war in the Middle East, coupled with Russia’s February 2022 invasion and continuing assault of neighboring Ukraine. Those unrelenting military conflicts show the fragility of peace when aggressors are willing to use any means to achieve their goals. To beat back such attacks and deter any recurrence, rapid and effective response is required.

“The Department of Defense is doing more than ever before to deter, defend, and, if necessary, defeat aggression,” Gen. Brown said at the national security conference held Nov. 16 at Johns Hopkins University.

Russia’s February 2022 invasion and sustained attacks of Ukraine has inflicted a heavy toll on both sides. Despite facing a much larger force with more military equipment, Ukraine’s resistance to the invasion is ongoing. For example, Russia’s 360-foot-long Novocherkassk war ship was damaged on Dec. 26 by a Ukrainian attack on a Black Sea port in Crimea. This video shows the ship exploding at the port when struck by aircraft-guided missiles.


Chairman Joint Chiefs of Staff Gen. Charles Q. Brown, Jr.
Photo By: Benjamin Applebaum

National security threats can require immediate action, Gen. Brown said he quickly learned since taking his post on Oct. 1.

“We may not have much warning when the next fight begins,” Gen. Brown said. “We need to be ready.”

Michael R. Bloomberg, founder of Bloomberg LP, told the John Hopkins attendees in a pre-recorded speech about the critical need for collaboration between government and industry.

“Building enduring technological advances for the U.S. military will help our service members and allies defend freedom across the globe,” Bloomberg remarked to the National Security Innovation Forum at the Johns Hopkins University Bloomberg Center.


Michael Bloomberg, philanthropist and founder of Bloomberg L.P.

The “horrific terrorist attacks” against Israel and civilians living there on Oct. 7 underscore the importance of that mission, Bloomberg added.

The three aerospace investments to purchase after the emergency of a Boeing 737 MAX 9 offer ways to divert around the financial turbulence caused by the mid-air malfunction.

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Three dividend-paying defense funds to consider offer investors ways to gain exposure to a key sector that increasingly is needing to ramp up production and speed up innovation to keep up with rising demand for military equipment with wars in Ukraine, the Middle East and elsewhere.

A “sense of urgency” to ready U.S. forces is not communicated well enough from senior officials who need to advocate for funding and innovation, BoA Global Research’s lead defense and aerospace analyst Ron Epstein wrote in a Jan. 5 research note. The 16th annual BofA Defense Outlook Forum, held Jan. 3, attracted industry experts, corporate leaders, U.S. Department of Defense (DoD) personnel and the investment community to assess priorities and the greatest needs to prepare for modern warfare and national defense.

“Several experts noted that geopolitical risk stemming from the interconnectedness of potential threats — including China, Russia and Iran — is not well understood by the American people,” Epstein wrote. “There also seems to be a disconnect between the forces we need to counter our adversaries and the budget the DoD has to do so. Additionally, experts noted that the DoD has focused on a ‘one war’ strategy, which lacks the capacity and capability to handle a ‘two war’ scenario.”

Three Dividend-paying Defense Funds to Consider: PPA

The first of the three dividend-paying defense funds recommended by former pension fund chairman Bob Carlson is Invesco Aerospace & Defense ETF (PPA), which tracks the SPADE Defense Index. It has the same underweighting and overweighting as SPDR S&P Aerospace and Defense ETF (XAR), said Carlson, who heads the Retirement Watch investment newsletter.

Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

PPA recently held 52 securities and 53.2% of the fund was in its 10 largest positions. With so many holdings, the fund offers reduced risk compared to buying individual stocks. The biggest positions in the fund recently were Boeing (NYSE: BA), RTX Corp. (NYSE: RTX), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Electric (NYSE:GE).

The fund is up 15.53% for the past year, 15.67% in the last three months and 2.00% during the past month. PPA’s dividend yield recently touched 0.7%.

PPA has the best “risk-reward profile,” compared to similar defense funds, said Michelle Connell, president and owner of Dallas-based Portia Capital Management, LLC.


Michelle Connell heads Portia Capital Management LLC.

One of the reasons that PPA outperforms its peers consistently is that it holds “reasonable weights” of each individual stock, Connell said. PPA’s weightings range from 2% to 6%, she added.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Defense Funds to Consider: XAR

A second fund that provides dividends from defense and aerospace investments is XAR. That exchange-traded fund tracks the S&P Aerospace & Defense Select Industry Index. The fund is overweight in industrials and underweight in technology and consumer cyclicals, Carlson said.

Chart Courtesy of www.stockrover.com; Click this link to learn about www.stockrover.com.

XAR has 34 securities, and 44.2% of the fund is in the 10 largest positions. The fund is up 18.67% in the last year, 19.72% in the past three months and 1.72% for the last month. Its dividend yield currently measures 1.1%.

The largest positions in the fund recently were Axon Enterprise (NASDAQ: AXON), Boeing (NYSE: BA), L3Harris Technologies (NYSE: LHX), Spirit Aerosystems (NYSE: SPR) and Virgin Galactic (NYSE: SPCE).

Chart courtesy of www.stockcharts.com

Three Dividend-paying Defense Funds to Consider: ITA

A third fund that Carlson suggested is iShares US Aerospace & Defense (ITA). The fund has the lowest fees among the three, but has the worst performance compared to the other two, Carlson observed.

ITA seeks to track the Dow Jones U.S. Select Aerospace and Defense Index. Like the other two funds, this one is overweight toward industrials, while underweight toward technology and consumer cyclicals, Carlson said.

The fund recently owned 35 securities, and 76.8% of the ETF was in its 10 largest positions. The top five positions in the fund were Boeing, RTX, Lockheed Martin, Axon Enterprise (NASDAQ: AXON) and L3Harris Technologies (NYSE: LHX).

ITA is up 11.75% during the last 12 months, 20.47% for the last three months and 2.55% in the last month. Its dividend yield is 1.4%.

Connell criticized the concentration of ITA’s holdings in its largest positions. Boeing accounts for 19.26% of the fund, followed by RTX Corp., with 17.09%. RTX fell 13% in the past year to hold back the fund’s performance compared to its peers. Connell counseled.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Defense Funds to Consider: Fast Money?

Two fans of aerospace stocks are Mark Skousen, PhD, and season stock picker Jim Woods. The pair team up to head the Fast Money Alert advisory service. They already are profitable in their recent recommendation of dividend-paying Lockheed Martin (NYSE: LMT) in Fast Money Alert.

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


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Bryan Perry, who leads the Cash Machine investment newsletter and the Micro-Cap Stock Trader advisory service, recommends a satellite services provider that has jumped 55.38% since he advised buying it just 10 weeks ago. Perry is averaging a dividend yield of 11.14% in his Cash Machine newsletter but is breaking out with the red-hot recommendation in his Micro-Cap Stock Trader advisory service.


Bryan Perry heads Cash Machine, averaging an 11.14% dividend yield.

Military Demand Soars Amid Wars

The U.S. military faces an acute need to adopt innovation, to expedite implementation of technological gains, to tap into the talents of people in various industries and to step-up collaboration with private industry and international partners to enhance effectiveness, U.S. Joint Chiefs of Staff Gen. Charles Q. Brown Jr. told attendees on Nov 16 at a national security conference. Prime examples of the need are multiple raging wars, including those in Ukraine and the Middle East, as well as a cold one involving China and its strained relationships with Taiwan and other Asian nations.

The shocking Oct. 7 attack by Hamas on Israel triggered an ongoing war in the Middle East, coupled with Russia’s February 2022 invasion and continuing assault of neighboring Ukraine. Those brutal military conflicts show the fragility of peace when determined aggressors are willing to use any means to achieve their goals. To fend off such attacks, rapid and effective response is required.

“The Department of Defense is doing more than ever before to deter, defend, and, if necessary, defeat aggression,” Gen. Brown said at the national security conference held at Johns Hopkins University.

Russia’s 360-foot-long Novocherkassk war ship was damaged on Dec. 26 by a Ukrainian attack on a Black Sea port in Crimea. This video shows the ship exploding at the port when struck by aircraft-guided missiles.

Chairman Joint Chiefs of Staff Gen. Charles Q. Brown, Jr.
Photo By: Benjamin Applebaum

National security threats can require immediate action, Gen. Brown said he quickly learned since taking his post on Oct. 1.

 

“We may not have much warning when the next fight begins,” Gen. Brown said. “We need to be ready.”

 

In a pre-recorded speech, Michael R. Bloomberg, founder of Bloomberg LP, told the John Hopkins attendees of a critical need for collaboration between government and industry.

 

“Building enduring technological advances for the U.S. military will help our service members and allies defend freedom across the globe,” Bloomberg remarked before the National Security Innovation Forum at the Johns Hopkins University Bloomberg Center.

Michael Bloomberg, philanthropist and founder of Bloomberg L.P.

The “horrific terrorist attacks” against Israel and civilians living there on Oct. 7 underscore the importance of that mission, Bloomberg added.

The three dividend-paying defense funds to consider provide investors with a path to profit and to be rewarded for their patience with income payouts from each.

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Six dividend-paying aerospace investments to purchase in wartime offer opportunities to obtain shares of companies aimed at enhancing national defense.

The six dividend-paying aerospace investments to purchase provide potent products to help protect freedom amid Russia’s barrage of attacks on Ukraine that started February 2022, as well as Israel’s military response to an attack by Hamas militants who murdered, raped and kidnapped civilians in Israel on Oct. 7. Even though the S&P 500 recently reached all-time highs, these six aerospace investments not only largely have stayed reasonably priced but have been recommended by industry analysts and a pension fund chairman.

State television broadcasts in Russia show the country’s soldiers advancing further into Ukrainian territory, but family members of those serving in perilous conditions due to the invasion of their neighboring nation have participated in protests to ask for their loved ones to be returned home. Despite hundreds of thousands of Russians fleeing to other countries to avoid compulsory military service, the country’s President Vladimir Putin continues sending wave after wave of soldiers into frontline combat.

While Russia’s land-grab of Crimea and other parts of Ukraine shows no end in sight, Israel’s war with Hamas likely will last at least months, according to the latest reports. United Nations’ leaders expressed alarm on Dec. 26 about intensifying Israeli attacks that killed more than 100 Palestinians over two days in part of the Gaza Strip, when 15 members of the Israel Defense Force (IDF) also lost their lives.

Chart Courtesy of www.stockrover.com; Click this link to learn about www.stockrover.com.

Six Dividend-paying Aerospace Investments to Purchase in Wartime: General Dynamics

One of the six aerospace investments to buy in wartime is General Dynamics (NYSE: GD), a Reston, Virginia-based company with more than 100,000 employees in 70-plus countries. A key business unit of General Dynamics is Gulfstream Aerospace Corporation, a manufacturer of business aircraft. Other segments of General Dynamics focus on heavy mobile military equipment such as Abrams tanks, Stryker fighting vehicles, ASCOD fighting vehicles like the Spanish PIZARRO and British AJAX, LAV-25 Light Armored Vehicles and Flyer-60 lightweight tactical vehicles.

For the U.S. Navy and other allied armed forces, General Dynamics builds Virginia-class attack submarines, Columbia-class ballistic missile submarines, Arleigh Burke-class guided missile destroyers, Expeditionary Sea Base ships, fleet logistics ships, commercial cargo ships, aircraft and naval gun systems, Hydra-70 rockets, military radios and command and control systems. In addition, the company provides radio and optical telescopes, secure mobile phones, PIRANHA and PANDUR- wheeled armored vehicles and mobile bridge systems.

Chicago-based investment firm William Blair & Co. is among those recommending General Dynamics. The Chicago firm affirmed an “outperform” rating on General Dynamics in a Dec. 21 research note.

Gulfstream continues to work toward G700 FAA certification by the end of 2023, suggesting potentially positive news in roughly the next 10 days, William Blair wrote in its recent research note. The investment firm projected that General Dynamics would trade higher upon receipt of the certification.

“General Dynamics’ 2023 aircraft delivery guidance of approximately 134 planes assumes that 19 G700s are delivered in the fourth quarter,” wrote William Blair’s aerospace and defense analyst Louie DiPalma. “Even if deliveries fall short of this target, we believe investors will take a glass-half-full approach upon receipt of the certification.”

Chart courtesy of www.stockcharts.com.

Six Dividend-paying Aerospace Investments to Purchase in Wartime: GD Forecast

The G700 is a major focus area for investors because it is Gulfstream’s most significant aircraft introduction since the iconic G650 in 2012, DiPalma wrote. Gulfstream has the highest market share in the long-range jet segment of the private aircraft market, the biggest profit margin of aircraft peers and the most premium business aviation brand, he added.

“The aircraft remains immensely popular today with corporations and high-net-worth individuals,” Di Palma wrote. “Elon Musk has reportedly placed an order for a G700 to go along with his existing G650. Qatar Airways announced at the Paris Air Show that 10 G700 aircraft will become part of its fleet.”

G700 deliveries and subsequent G800 deliveries are expected to be the cornerstone of Gulfstream’s growth and margin expansion for the next decade, DiPalma wrote. This should lead to a rebound in the stock price as the profit margins for the G700 and G800 are “very attractive,” he added.

Management’s guidance is for the aerospace operating margin to increase from about 13.2% in 2022 to roughly 14.0% in 2023 and 15.8% in 2024. Longer term, a high-teens margin appears within reach DiPalma forecast.

In other General Dynamics business segments, Willian Blair expects several yet-unannounced large contract awards for General Dynamics IT, to go along with C$1.7 billion, or US$1.29 billion, in General Dynamics Mission Systems contracts that were announced on Dec. 20 for the Canadian Army. General Dynamics shares are poised to have a strong 2024, William Blair wrote.

Six Dividend-paying Aerospace Investments to Purchase in Wartime: VSEC

A competitor’s recent $725 million acquisition validates the valuation multiple of Alexandria, Virginia-based VSE Corporation (NASDAQ: VSEC), DiPalma wrote in a recent research note. AAR Corp (NYSE: AIR), a Wood Dale, Illinois, provider of aviation services, announced an agreement on Dec. 21 to acquire the product support business of Triumph Group (NYSE: TGI), a Berwyn, Pennsylvania a supplier of aerospace services, structures and systems.

VSE, a provider of aftermarket distribution and repair services for land, sea and air transportation assets of government and commercial markets, is rated “outperform” by William Blair. The company’s core services include maintenance, repair and operations (MRO), parts distribution, supply chain management and logistics, engineering support, as well as consulting and training for global commercial, federal, military and defense customers.

“Robust consumer travel demand and aging aircraft fleets have driven elevated maintenance visits,” William Blair’s DiPalma wrote in a Dec. 21 research note. “The AAR–Triumph deal is valued at a premium 13-times 2024 EBITDA multiple, which was in line with the valuation multiple that HEICO (NYSE: HEI) paid for Wencor over the summer.”

VSE currently trades at a discounted 9.5 times consensus 2024 earnings before interest, taxes, depreciation and amortization (EBITDA) estimate and 11.6 times consensus 2023 EBITDA.

Six Dividend-paying Aerospace Investments to Purchase in Wartime: Undervalued?

“We expect that VSE shares will trend higher as investors process this deal,” DiPalma wrote. “VSE shares trade at 9.5 times consensus 2024 adjusted EBITDA, compared with peers and M&A comps in the 10-to-14-times range. We think that VSE’s multiple will expand as it closes the divestiture of its federal and defense business and makes strategic acquisitions. We see consistent 15% annual upside for shares as VSE continues to take share in the $110 billion aviation aftermarket industry.”

William Blair reaffirmed its “outperform” rating on VSE on Dec. 21. The main risk to VSE shares is lumpiness associated with its aviation services margins, Di Palma wrote. However, he raised 2024 estimates to further reflect commentary from the analysts’ day VSE held in November.

Chart courtesy of www.stockcharts.com.

Six Dividend-paying Aerospace Investments to Purchase in Wartime: HEICO

HEICO Corporation (NYSEL: HEI), is a Hollywood, Florida-based technology-driven aerospace, industrial, defense and electronics company that also is ranked as an “outperform” investment by William Blair’s DiPalma. The aerospace aftermarket parts provider recently reported fourth-quarter financials above consensus analysts’ estimates driven by 20% organic growth HEICO’s flight support group.

HEICO’s management indicated that the performance of recently acquired Wencor is exceeding expectations. However, HEICO provided color for 2024 organic growth and margin expectations that assume reduced gains. Even though consensus estimates already forecast slowing growth, it is not a positive for HEICO, DiPalma wrote.

William Blair forecasts 15% annual upside to HEICO’s shares, based on EBITDA growth. HEICO’s management cited a host of reasons for its quarterly outperformance, highlighted by the continued commercial air travel recovery. The company also referenced new product introductions and efficiency initiatives.

HEICO’s defense product sales increased by 26% sequentially, marking the third consecutive sequential increase in defense product revenue. The company’s leaders conveyed that defense in general is moving in the right direction to enhance financial performance.

Chart courtesy of www.stockcharts.com.

Six Dividend-paying Defense and Aerospace Investments to Purchase: XAR

A fourth way to obtain dividends from defense and aerospace investments is through SPDR S&P Aerospace and Defense ETF (XAR). That exchange-traded fund tracks the S&P Aerospace & Defense Select Industry Index. The fund is overweight in industrials and underweight in technology and consumer cyclicals, said Bob Carlson, a pension fund chairman who heads the Retirement Watch investment newsletter.

Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

XAR has 34 securities, and 44.2% of the fund is in the 10 largest positions. The fund is up 23.79% in the last year, 21.12% in the past three months and 6.21% for the last month. Its dividend yield recently measured 1.0%.

The largest positions in the fund recently were Axon Enterprise (NASDAQ: AXON), Boeing (NYSE: BA), L3Harris Technologies (NYSE: LHX), Spirit Aerosystems (NYSE: SPR) and Virgin Galactic (NYSE: SPCE).

Chart courtesy of www.stockcharts.com

Six Dividend-paying Aerospace Investments to Purchase in Wartime: PPA

The second fund recommended by Carlson is Invesco Aerospace & Defense ETF (PPA), which tracks the SPADE Defense Index. It has the same underweighting and overweighting as XAR, he said.

PPA recently held 52 securities and 53.2% of the fund was in its 10 largest positions. With so many holdings, the fund offers reduced risk compared to buying individual stocks. The biggest positions in the fund recently were Boeing (NYSE: BA), RTX Corp. (NYSE: RTX), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Electric (NYSE:GE).

The fund is up 18.41% for the past year, 15.83% in the last three months and 5.09% during the past month. PPA’s dividend yield recently touched 0.7%.

Chart courtesy of www.stockcharts.com

Six Dividend-paying Aerospace Investments to Purchase in Wartime: Observers

A third fund that Carlson suggested is iShares US Aerospace & Defense (ITA). The fund has the lowest fees among the three but has trailed the share price gains of the other two, Carlson observed.

ITA seeks to track the Dow Jones U.S. Select Aerospace and Defense Index. Like the other two funds, this one is overweight toward industrials, while underweight toward technology and consumer cyclicals, Carlson said.

The fund recently owned 36 securities, and 70.5% of the ETF was in its 10 largest positions.

Top positions in the fund recently were Boeing, RTX, Lockheed Martin, Axon Enterprise (NASDAQ: AXON) and L3Harris Technologies (NYSE: LHX).

ITA is up 14.34% during the last 12 months, 19.88% for the last three months and 5.99% in the last month. Its dividend yield is 1.4%.

Chart courtesy of www.stockcharts.com

Six Dividend-paying Aerospace Investments to Purchase in Wartime: Fans

Two fans of aerospace stocks are Mark Skousen, PhD, and season stock picker Jim Woods. The pair team up to head the Fast Money Alert advisory service. They already are profitable in their recent recommendation of Lockheed Martin (NYSE: LMT) in Fast Money Alert.

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


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Bryan Perry, who leads the Cash Machine investment newsletter and the Micro-Cap Stock Trader advisory service, recommends a satellite services provider that has jumped 50.00% since he advised buying it two months ago. Perry is averaging a dividend yield of 11.14% in his Cash Machine newsletter but is breaking out with the red-hot recommendation in his Micro-Cap Stock Trader advisory service.


Bryan Perry heads Cash Machine, averaging an 11.14% dividend yield.

Military Product Demand Soars Amid Wars

The U.S. military faces an acute need to adopt innovation, to expedite implementation of technological gains, to tap into the talents of people in various industries and to step-up collaboration with private industry and international partners to enhance effectiveness, U.S. Joint Chiefs of Staff Gen. Charles Q. Brown Jr. told attendees on Nov 16 at a national security conference. Prime examples of the need are shown by multiple raging wars, including those in Ukraine and the Middle East, as well as a cold one involving China and its increasingly strained relationships with Taiwan and other Asian nations.

The shocking Oct. 7 attack by Hamas on Israel touched off the ongoing war in the Middle East, coupled with Russia’s February 2022 invasion and continuing assault of neighboring Ukraine. Those brutal military conflicts show the fragility of peace when determined aggressors are willing to use any means necessary to achieve their goals. To fend off such attacks, rapid and effective response is required.

“The Department of Defense is doing more than ever before to deter, defend, and, if necessary, defeat aggression,” Gen. Brown said at the national security conference held at Johns Hopkins University.

Russia’s 360-foot-long Novocherkassk war ship was damaged on Dec. 26 by a Ukrainian attack on a Black Sea port in Crimea. This video shows the ship exploding at the port when struck by aircraft-guided missiles.


Chairman Joint Chiefs of Staff Gen. Charles Q. Brown, Jr.
Photo By: Benjamin Applebaum

National security threats can require immediate action, Gen. Brown said he quickly learned since taking his post on Oct. 1.

 

“We may not have much warning when the next fight begins,” Gen. Brown said. “We need to be ready.”

 

In a pre-recorded speech, Michael R. Bloomberg, founder of Bloomberg LP, told the John Hopkins attendees of a critical need for collaboration between government and industry.

 

“Building enduring technological advances for the U.S. military will help our service members and allies defend freedom across the globe,” Bloomberg remarked before the National Security Innovation Forum at the Johns Hopkins University Bloomberg Center.

Michael Bloomberg, philanthropist and founder of Bloomberg L.P.

 

The “horrific terrorist attacks” against Israel and civilians living there on Oct. 7 underscore the importance of that mission, Bloomberg added.

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

 

 

 

 

 

Five dividend-paying defense and aerospace investments to purchase amid wars feature two under-the-radar stocks and three industry funds.

The five defense and aerospace investments to purchase amid wars include a pair of stocks that serve important roles in helping to defend freedom amid Russia’s ongoing invasion of Ukraine that began in February 24, 2022, the war in the Middle East started when Hamas militants attacked and murdered civilians in Israel on Oct. 7 and other military conflicts. Even though the S&P 500 is setting record highs, these five defense and aerospace investments have not climbed stratospherically.

The first of the five defense and aerospace investments to buy is one that went bankrupt early in its existence due to extraordinarily high costs, cumbersome user equipment and regulatory delays that left it stuck at the start line as mobile phone services surged. However, financial restructuring became a lifeline for tapping the company’s potential without the albatross of insurmountable start-up expenses, charges of up to $7 a minute for voice service and a Super Bowl television advertisement that bombed when a deluge of viewers interested in the service called to subscribe but only a fraction of the queries could be answered.

Five Dividend-paying Defense and Aerospace Investments to Purchase: Iridium

Iridium Communications (NASDAQ: IRDM), of McLean, Virginia, is a satellite services operator for the U.S. Department of Defense (DoD) and other users catered to by a constellation of 66 spacecraft in low-earth orbit (LEO) at a height of approximately 485 miles, or 780 kilometers. The initial version of the company initiated service on November 1, 1998, as Iridium SSC, then later exited bankruptcy and ultimately launched a replacement constellation called Iridium NEXT, while saving money in putting its satellites in orbit with the advent of reusable rockets from providers such as SpaceX.

Investors who like to buy stocks at bargain prices might take an interest in Iridium, since its shares incurred heavy selling after Qualcomm Inc. (NASDAQ: QUAL), a wireless products company headquartered in San Diego, California, recently ended a fledgling partnership between the pair that was begun in December 2022. Both pricing of the product and the technology likely factored into the break-up, wrote Louie DiPalma, a technology analyst with Chicago-based investment firm William Blair, who has an “outperform” rating on Iridium.


Chart courtesy of www.stockcharts.com.

“Qualcomm conveyed to us that even though the Iridium service was functional and available for smartphone manufacturers to incorporate in their phones, the smartphone manufacturers did not have a line of sight on the monetization models,” DiPalma wrote in a recent research note. “This implies that smartphone manufacturers were concerned about the economics and were objecting to the price Qualcomm was charging. Secondly, Qualcomm told CNBC in a statement that smartphone manufacturers preferred a standards-based satellite solution instead of Iridium’s proprietary solution. Others in the industry are developing standards-based satellite connectivity solutions for smartphones.”

Iridium executives indicated at a meeting with industry analysts that it is exploring the addition of 5G standards-based connectivity to its satellite network, DiPalma wrote. The handoff between cellular and satellite connectivity is simpler using 5G standards, he added.

Five Dividend-paying Defense and Aerospace Investments to Purchase: Life After Qualcomm

While the Qualcomm partnership could have given Iridium significant growth potential, the satellite company still has 500 other distributor partners that include Garmin (NYSE: GRMN), General Dynamics (NYSE: GD), Boeing (NYSE: BA), Honeywell (NASDAQ: HON), Collins Aerospace, Caterpillar (NYSE: CAT) and the DoD. Those partners have put Iridium’s free cash flow (FCF) — the money left after paying operating and capital expenses (capex) — on pace to reach $2.32 per share this year, up from $1.46 per share in 2020, DiPalma added.

“FCF is set for another strong year in 2024 with capex coming down,” DiPalma said. “Iridium also may pursue other partnerships in the smartphone ecosystem,” he added.

Although the smartphone catalyst of the Qualcomm partnership has been removed, Iridium remains a steady free cash flow (FCF) generator, DiPalma wrote. Even though the dissolution of the joint effort occurred, Qualcomm and Iridium spent considerable time co-developing the service. But it became apparent in October 2023 that Iridium was not going to be integrated into Samsung’s marquee Galaxy S24 phone that is set to launch in January.

“The stock was hit hard, due to the fall through of a deal with Qualcomm,” said Michelle Connell, president of Dallas-based Portia Capital Management LLC. “I think its tech is sound. The CEO must feel the same; he bought about $1 million in shares after the Qualcomm announcement.”


Michelle Connell heads Portia Capital Management LLC.

Plus, Cathie Wood, chief executive officer of Ark Investment Management LLC, of St. Petersburg, Florida, recently ranked Iridium as one of her favorite stocks. Wood is known for focusing on technology stocks that have strong potential. She calls such companies disruptive innovators.


Paul Dykewicz interviews Cathie Wood.

Bryan Perry, who heads the Cash Machine investment newsletter and the Micro-Cap Stock Trader advisory service, recommends an Iridium rival that has jumped 47.69% since he advised buying it two months ago. Perry is averaging a dividend yield of 11.14% in his Cash Machine newsletter but is breaking out with his Iridium rival recommendation in his Micro-Cap Stock Trader advisory service.


Bryan Perry heads Cash Machine, averaging an 11.14% dividend yield.

However, Connell prefers Iridium between the two stocks, especially since its share price is rising again after dropping in the aftermath of the partnership breakup with Qualcomm. It is far better for investors to buy shares in a company after bad news than before it.

Five Dividend-paying Defense and Aerospace Investments to Purchase: Iridium’s Guidance

Iridium’s Chief Financial Officer Ken Levy offered the following guidance that backs up the favorable outlook about the company by DiPalma and Connell.

Five Dividend-paying Defense and Aerospace Investments to Purchase: Motorola

Another military and government technology stock that DiPalma gives an “outperform” rating is Chicago-based Motorola Solutions Inc. (NYSE: MSI). Motorola announced on Dec. 18 that it is buying IPVideo, the creator of the HALO Smart Sensor, for an undisclosed price. The acquisition complements Motorola’s physical security offerings by adding a non-video detection product to the company’s capabilities.

In the past five years, Motorola has made 13 acquisitions in the video and access control space. The HALO Smart Sensor product has multifunctional capabilities such as vape detection and air quality monitoring, gunshot detection, abnormal noise detection and more, DiPalma continued.

“Because the sensor does not possess a video function, it can be placed in areas such as restrooms, classrooms, hotel rooms and hospital rooms,” DiPalma wrote. “The HALO product also possesses other functions such as the HALO Cloud, which provides an online dashboard for monitoring and tracking, integration with third-party systems and real-time notifications to mobile devices via SMS and/or email.”

In addition, Motorola has an integrated bundle for the education market branded as Orchestrate that includes video systems, radio connectivity, RAVE panic button alerts and workflow software. HALO is a natural fit into Orchestrate, making Motorola’s education offering even stronger.

Five Dividend-paying Defense and Aerospace Investments to Purchase: Valuation Matters

Motorola trades at 25 times the forward-year (2024) earnings per share (EPS) estimate, which is a premium to its 21 times February 2020 pre-pandemic multiple and a slight discount to its November 2021 peak multiple of 27 times, DiPalma assessed. Record demand for public safety communications, video security and command center software should drive long-term EPS growth in the low double-digit percentages when taking into account organic growth, acquisitions and stock buybacks, he added.

The annual stock return should at least match EPS growth, DiPalma said. He opined that the primary risk to Motorola shares is valuation multiple compression, if its revenue growth slows.


Chart courtesy of www.stockcharts.com

Five Dividend-paying Defense and Aerospace Investments to Purchase: Baron Focused Growth

A third investment that offers exposure to Iridium and other defense and aerospace stocks, among sectors, is the Baron Focused Growth Fund (NYSE ARCA: BFGIX). Roughly 3% of the fund consists of shares in Iridium. The fund’s second-largest holding is privately held SpaceX, a provider of satellite services and reusable launch vehicles that have dramatically cut the cost of putting spacecraft into orbit compared to expendable boosters that perform just one mission.

The fund is managed by Ron Baron, founder and chairman of Baron Capital in New York, and his son David Baron. Baron Capital is known for buying and holding stocks for the long term, with an emphasis on the capabilities, innovativeness and the commitment to excellence of management teams.


Paul Dykewicz meets with Ron Baron in New York.

Aerospace and defense stocks account for the fourth-largest segment of the fund’s holdings, behind automobile manufacturers; hotels, resorts and cruise lines; and financial exchanges and data.  The Baron fund has jumped 28.46 in the past year, 9.94% in the past three months and 8.07% in the last month.


Chart courtesy of www.stockcharts.com

Five Dividend-paying Defense and Aerospace Investments to Purchase: XAR

A fourth way to obtain dividends from defense and aerospace investments is through SPDR S&P Aerospace and Defense ETF (XAR). That exchange-traded fund  tracks the S&P Aerospace & Defense Select Industry Index. The fund is overweight in industrials and underweight technology and consumer cyclicals, said Bob Carlson, a pension fund chairman who heads the Retirement Watch investment newsletter.
Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.
XAR has 34 securities, and 44.2% of the fund is in the 10 largest positions. The fund is up 25.82% in the last 12 months, 22.03% in the past three months and 7.92% for the last month. Its dividend yield recently measured 0.38%.
The largest positions in the fund recently were Axon Enterprise (NASDAQ: AXON), Boeing (NYSE: BA), L3Harris Technologies (NYSE: LHX), Spirit Aerosystems (NYSE: SPR) and Virgin Galactic (NYSE: SPCE).

Chart courtesy of www.stockcharts.com
Five Dividend-paying Defense and Aerospace Investments to Purchase: PPA
The second fund recommended by Carlson is Invesco Aerospace & Defense ETF (PPA), which tracks the SPADE Defense Index. It has the same underweighting and overweighting as the XAR, he said.
PPA recently held 54 securities and 53.2% of the fund was in its 10 largest positions. With so many holdings, the fund offers much reduced risk compared to buying individual stocks. The largest positions in the fund recently were Boeing (NYSE: BA), RTX Corp. (NYSE: RTX), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Electric (NYSE:GE).
The fund is up 19.07% for the past year, 50.34% in the last three months and 5.30% during the past month. The dividend yield recently touched 0.69%.

Chart courtesy of www.stockcharts.com

Military Demand Soars after Russia and Hamas Wage War

The U.S. military must adopt innovation, speed up implementation of technological advances, tap the talents of people in various industries and increasingly collaborate with private industry and international partners to maximize its effectiveness, the U.S. Joint Chiefs of Staff Gen. Charles Q. Brown Jr. told attendees of a recent national security conference. The raging wars in Ukraine and the Middle East are prime examples of the need.

The surprise Oct. 7 military attack by Hamas on Israel that started an ongoing war in the Middle East and Russia’s February 2022 invasion of neighboring Ukraine show how suddenly peace can be broken by aggressors, requiring rapid and effective response.

“The Department of Defense is doing more than ever before to deter, defend, and, if necessary, defeat aggression,” Gen. Brown said on Nov. 16 at the Johns Hopkins University conference.


Chairman Joint Chiefs of Staff Gen. Charles Q. Brown, Jr.
Photo By: Benjamin Applebaum

The security landscape can change in an instant, Gen. Brown said he quickly learned since taking his post on Oct. 1.

“We may not have much warning when the next fight begins,” Gen. Brown said. “We need to be ready.”

Hamas Attack, Hostage Taking and Murders In Israel Trigger Massive Disruption to Daily Life

The Oct. 7 Hamas attack killed 1,200 people in Israel, and involved the kidnapping of 240 others who were taken to Gaza by armed gunmen to be held as hostages. The act of terror spurred the call up of approximately 360,000 reservists to the Israel Defense Force (IDF). That number composes more than 5% of Israel’s Jewish population of 7.14 million people. Already more than 500 members of the IDF have given their lives in the newest fight for Israel’s survival and defense of its democracy.

The war that Hamas triggered with Israel also has hamstrung some of the Israeli companies that are followed in Gilder’s Private Reserve advisory service. One company was in the midst of completing critical tasks when the Hamas attackers struck on Oct. 17.

That company’s co-founder and chief executive officer mentioned that much work is required between offering a free beta test essentially for private use, before launching commercial service when fees will be charged, and the reputation of that business will be at stake. The latest edition of Gilder’s Private Reserve advisory service, led by technology futurist George Gilder, estimated that the still-private company’s progress will be delayed roughly for a full year due to the disruption of daily life stemming from the Hamas attack and need for reservists to enter Gaza to defend Israel’s security interests.


Paul Dykewicz talks with George Gilder, who tracks pre-public companies in Gilder’s Private Reserve.

The human toll of the war has been huge. Gaza’s Health Ministry reported that it has documented 20,057 deaths in the fighting and more than 50,000 wounded, as of Dec. 22. Those numbers do not differentiate between combatant and civilian deaths.

Israel’s aggressive response has drawn international criticism due to the heavy loss of life in Gaza. But Israeli officials reported exposing the center of a vast underground network of tunnels on Dec. 20 that is used by Hamas to move weapons, militants and supplies throughout the Gaza Strip. Israel’s leaders have said that destroying the tunnels that facilitated the Hamas attack, murder, raping and kidnapping of Israeli civilians on Oct. 7 is a major objective of the offensive.

Not all hope is lost for curtailing military action, since the top leader of Hamas arrived in Egypt this week for talks about a temporary cease-fire and a possible new exchange of hostages taken from Israel for Palestinian prisoners held in Israel. More than a hundred of the hostages taken from Israel were freed during a week-long cease-fire in late November, along with far more Palestinian prisoners released by Israel.

Investors need to beware of the political risks in the world, but the five defense and aerospace investments to purchase amid the raging wars currently look to offer places of financial refuge. 

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. Attention Holiday Gift Buyers! Consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He 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, after writing for the Baltimore Business Journal and Crain Communications.

Three dividend ETFs offer income and growth opportunities that could entice investors seeking strong total returns with reduced risk.

The three dividend-paying exchange-traded funds (ETFs) share commonalities but include variations that add a bit of differentiation. Dividend equities also provide investors with reduced risk, since market pullbacks typically are less brutal to stocks and funds that pay income.

Stocks and funds that consistently pay dividends tend to be less volatile, since the income keeps flowing even if the share price drops. The dividends typically are at least quarterly but sometimes as often as monthly. With broad-based dividend ETFs, the wide range of holdings invariably will pay some monthly dividends along with the quarterly ones.

Three Dividend ETFs Offer Income and Growth: SPYD

Stocks that pay dividends essentially provide a cash bonus to investors. For those who worry about the ups and downs of technology stocks, dividend-paying equities offer a more conservative alternative.

SPDR Portfolio S&P 500 High Dividend ETF (NYSE ARCA: SPYD) is one of the three ETFs growth and income opportunities that can be viewed as “flight-to-safety” choices. Dividend ETFs like SPYD provide exposure to stocks that have a history of offering dividend payouts in all types of economic conditions.

Jim Woods, who heads the Successful Investing newsletter, recently wrote favorably about SPYD. He is known for using technical analysis for signaling when to be buying and selling stocks based on the market’s current movements.

Jim Woods leads Successful Investing.

Three Dividend ETFs Offer Income and Growth: Income Adds Traction

With the risk of a recession in 2024, dividend ETFs could prove to have traction to withstand the deep drops that sometimes roil the markets in turbulent times. SPYD tracks an index of the 80 highest-yielding dividend stocks selected from the S&P 500. The fund pays a current dividend yield of 4.5% that is measured by taking the latest dividend, multiplying it by the frequency of the payment and then dividing by the equity’s share price at the date of each rebalancing.

Unlike similar ETFs, SPYD does not include any dividend sustainability or quality screens. SPYD equally weighs its portfolio, instead of weighing it by yield like some income-focused funds. This approach provides what the fund manager describes as a fundamentally sound measuring stick to identify large-cap U.S. stocks with the strongest payout ratios to shareholders.

Launched in October 2015, SPYD has a thin expense ratio of just 0.07% and currently holds 77 stocks with a weighted average market capitalization of $47.49 billion and $6.95 billion in assets under management, and an expense ratio of 0.07%. Its top holdings, as of Dec. 14, are Seagate Technology Holdings PLC (NASDAQ: STX), NRG Energy, Inc. (NYSE: NRG), Keycorp (NYSE: KEY), Zions Bancorp (NASDAQ: ZION) and Fifth Third Bancorp (NASDAQ: FITB).

Chart Courtesy of www.stockcharts.com

As of Dec. 14, the fund is up 12.401% in the past month, 8.32% in the last three months, 4.36% so far this year and 2.40% in the last 12 months. As the results show, SPYD is gaining momentum.

Three Dividend ETFs Offer Income and Growth: DIV

A second dividend ETF is Global X SuperDividend US ETF (NYSEARCA: DIV). The fund’s managers seek to own the 50 highest dividend-paying stocks trading in the U.S. market, including traditional dividend common stocks, real estate investment trusts (REITs) and master limited partnerships (MLPs).

DIV seeks to hold companies with sizable dividend payouts, low relative volatility and a track record of paying out consistent dividends over the previous two years. Thus, that methodology gives DIV a strong dose of financials, energy and utilities.

Certain investors have continued to use dividend-paying stocks as a shield against uncertainty. Studies by Ned Davis Research and others have lent empirical support to this strategy, with scholars finding both domestic and international companies, whose dividends have risen annually for the past 20 years, outperforming companies whose payouts either stay flat or decline.

Top holdings in the DIV portfolio are Iron Mountain (NYSE: IRM), International Business Machines Corporation (NYSE: IBM), Universal Corp. (NYSE: UVV), USA Compression Partners LP (NYSE: USAC) and Cross America Partners LP (NYSE: CAPL). As of Dec. 14, DIV has dipped 2.53% year to date and 3.26% in the last 12 months, while climbing 5.04% in the past three months and 5.50% in the last month.

Chart courtesy of www.stockcharts.com

The fund has amassed $611.78 million in assets under management and has an annual expense ratio of 0.45%. DIV has 50 holdings and offers a current dividend yield of 6.73%.

Three Dividend ETFs Offer Income and Growth: PEY

A third dividend-paying ETF is Invesco High Yield Equity Dividend Achievers ETF (PEY). This smart-beta index fund selects 50 of the highest-yielding dividend stocks from the NASDAQ U.S. Broad Dividend Achievers Index. With a decade-plus track record of raising dividends, PEY is worth considering for one’s portfolio. It may lag other equities amid strong markets, but it performs well during periods of low or negative equity returns.

PEY provides monthly dividends and has continually increased its payouts in the past 10 years. The fund invests at least 90% of its total assets in stocks with dividend increases to ensure consistent payout growth.

PEY is selective about its holdings. To earn a spot in PEY, companies must have a good track record — boosting their annual cash dividend payouts for the last 10 consecutive calendar or fiscal years. Plus, companies must meet a minimum market capitalization of $1 billion to be eligible for inclusion. The index is reconstituted annually and rebalanced quarterly on a rigorous schedule.

Geographically, PEY is concentrated with 97.87% of holdings based in the United States and the rest based in Switzerland (2.13%). Stay alert when investing in dividend ETFs, since there is risk and the potential for losses from time to time.

PEY’s top holdings feature Universal Corp (NYSE: UVV), KeyCorp (NYSE: KEY), Altria Group Inc. (NYSE: MO), Verizon Communications (NYSE: VZ) and Trust Financial Group (NYSE: TFC). As of Dec. 14, PEY has climbed 8.25% in the last month, 5.70% in the past three months, 5.97% year to date and 6.47% for the past 12 months.

The fund has $1.3 billion in net assets under management, and an expense ratio of 0.52%. Its current dividend yield is 5.12%. PEY’s price-per-earnings (P/E) ratio recently reached 10.71.

Chart courtesy of www.stockcharts.com

Three Dividend ETFs Offer Income and Growth: Cash Machine

Another high-income sleuth is Bryan Perry, who heads the Cash Machine investment newsletter. High-yield debt, tactical debt, business development companies (BDCs), REITS, covered-call ETFs, covered-call closed-end funds, preferred stocks and utilities are all in the “sweet spot” for garnering very attractive yields against a backdrop of declining long-term bond yields, he said.

“We’re in a good place,” Perry wrote to his Cash Machine subscribers.

Bryan Perry has produced an 11.14% average dividend yield in Cash Machine.

Bryan Perry has produced an 11.14% average dividend yield in Cash Machine.

For investors looking for exposure to the markets but with a steady stream of income to go with it, the three dividend ETFs for an enticing combination of growth and income.

“We’re in a good place,” added Perry, who has an 11.14% average dividend yield in his Cash Machine investment newsletter.

For investors looking for exposure to the markets but with a steady stream of income to go with it, the three dividend ETFs for an enticing combination of growth and income.

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. Holiday gift buyers should consider purchasing Paul’s 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 great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases. Paul, who can be followed on Twitter @PaulDykewicz, also 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, after writing for the Baltimore Business Journal and Crain Communications.

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