Six dividend-paying consumer staples stocks to purchase as recession shields feature proven brands.

Five of the six dividend-paying consumer staples stocks to purchaser feature the food and beverage category, while the other one offers cleaning and personal care products. BofA Global Research rated beverage stocks as its favorite consumer staples sub-sector, but household, beauty and personal care companies followed closely.

Multinational consumer staple stocks such as Atlanta’s Coca-Cola (NYSE: KO) and Cincinnati’s Procter & Gamble (NYSE: PG) will be helped by peak U.S. dollar and interest rates, BofA wrote. Investors eyeing quality can rely on Harrison, New York-based PepsiCo (NASDAQ: PEP) and Hershey, Pennsylvania’s Hershey (NYSE: HSY), while those seeking a consumer staples stock in the mid-cap and small-cap category can choose frozen potato provider Lamb Weston Holdings, Inc. (NYSE: LW), of Eagle, Idaho.

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Six Dividend-paying Consumer Staples Stocks to Purchase Enjoy Inelastic Demand

Consumer staples food and beverage companies have shown “surprisingly inelastic” demand for their products, according to BofA. The investment firm foresees upside for gross margins, along with upgraded earnings revisions, as input inflation plateaus and the U.S. dollar weakens.

Unlike last quarter, BofA broadly expects earnings estimates for fiscal year 2023 to be in-line or move up due to the factors previously mentioned.

Coca-Cola is recommended both by BofA and Mark Skousen, PhD, who heads the Forecasts & Strategies investment newsletter. Coca-Cola is among the Flying Five stocks that Skousen recommends by choosing five Dow Jones Industrial Average positions that have the lowest price from a list of the 10 highest-yielding companies in the index.

Mark Skousen, a scion of Ben Franklin and head of Fast Money Alert, meets Paul Dykewicz.

Coca-Cola’s total returns have reached 46.8% since Skousen recommended it on July 31, 2017.

Chart courtesy of www.stockcharts.com

Coca-Cola Headlines Six-Dividend-paying Consumer Staples Stocks to Purchase

BofA projects “solid organic sales growth” from Coca-Cola aided by price hikes and strong demand. The investment firm set a $74 price objective on the stock, giving it a premium to non-alcoholic-beverage peers.

“In our view, a premium multiple is warranted by balanced and resilient organic sales growth,” BofA wrote in a recent research note.

An outperformance could occur with strong growth in developed and emerging markets, a weakening U.S. dollar compared to other currencies and improved free cash flow conversion. Risks to meeting that price target include volatility in developed and emerging markets, earnings per share (EPS) headwinds if the U.S. dollar strengthens and consumer concerns about sugar and calories, the investment firm wrote.

Six-Dividend-paying Consumer Staples Stocks to Purchase Include PepsiCo

PepsiCo is another major beverage stock top phase. The company owns the popular Frito-Lay brand of snack foods. BoA put a $205 price target on PepsiCo., along with a buy recommendation.

“We expect PEP is set up for another quarter of strong organic sales growth, modeling 4Q22 organic sales growth of +8%,” BofA wrote.

PepsiCo received a premium valuation to its non-alcoholic-beverage peers that is “justified” based on the stock’s positioning to deliver against its long-term algorithm and return cash to shareholders via dividends and share repurchases, the investment firm wrote. Further pluses for PepsiCo include low-to-moderate foreign exchange headwinds, growth opportunities and improving volume/price/mix in soft drinks.

Risks to reaching the price target stem from foreign exchange becoming a drag on results and Frito-Lay North America incurring a decline in volumes due to price hikes.

Chart courtesy of www.stockcharts.com

Six-Dividend-paying Consumer Staples Stocks to Purchase Clean up with Procter & Gamble

Procter & Gamble is a pick of Jim Woods, who concurrently leads the Intelligence Report investment newsletter and the Bullseye Stock Trader. The latter service recommends stocks and options, while Intelligence Report newsletter features stocks that typically pay dividends.

Paul Dykewicz meets with Jim Woods, head of Bullseye Stock Trader.

Woods recommends Procter & Gamble in the Income Multipliers Portfolio in his Intelligence Report investment newsletter.

BofA forecasts favorable tailwinds for Procter & Gamble with its market share trend improving since the start of fiscal year 2023, while inflation and currency headwinds moderate. Market expectations for organic sales have crept up recently to 5%, but the company has a favorable setup over the next few quarters, forecast BofA, which gave the stock a price target of $170.

Portia Capital Chief Predicts Procter & Gamble Will Shine

Michelle Connell, chief executive officer of Dallas-based Portia Capital Management, also recommends Procter & Gamble. Even though inflation has caused many consumers to trade down with their consumer staple purchases and buy cheaper products, Procter & Gamble has not felt this pressure, Connell commented.

Michelle Connell leads Dallas-based Portia Capital Management.

In its last quarter, the company had revenue growth of 5% due to its ability to increase its sales prices, Connell said. For its core categories, the company boosted prices 8-13%, she added.

Consumers are less willing to compromise regarding PG’s product categories, Connell counseled. The stock has three tailwinds that should assist in returning growth to its bottom line in the form of earnings per share, she said.

Procter & Gamble is expected to continue to increase its U.S. market share for the categories of family care and fabric care, Connell continued. The economic reopening of China will be a huge lift for Procter & Gamble, as the world’s most populous nation accounts for 10% of the company’s revenues, Connell added.

Procter & Gamble Has Upside of at Least 16%

The estimated upside for Procter & Gamble is more than 16%, Connell counseled. The stock also is offering a current dividend yield of 2.6%.

BofA’s price objective is affected by potential slowing in sales momentum, adverse competitive responses from private label brands in the coming months and a return to “risk-on” investing that would make Procter & Gamble’s defensive qualities less attractive.

Chart courtesy of www.stockcharts.com

Keurig Dr Pepper Is Among Six-Dividend-paying Consumer Staples Stocks to Purchase

Keurig Dr Pepper (NASDAQ: KDP), of Burlington, Massachusetts, is another recommendation of BoA. The investment firm placed a $45 price objective on the stock. The valuation takes into account KDP’s “attractive portfolio” of products that is equipped to grow sales and earnings, particularly with the addition of the C4 energy drink brand, BofA wrote.

Potential outperformance to the price target could come from additional synergies, reduced volatility in the coffee business, increased adoption of Keurig brewers and pods, as well as attractive mergers and acquisitions (M&A) candidates.

Several risks could create headwinds to attain the price objective, according to BofA. They include any industry shifts away from single serve coffee, which could lead to slower than anticipated de-leveraging, along with weak consumer spending around the holiday season that could negatively impact sales of the Keurig brewers.

Chart courtesy of www.stockcharts.com

Hershey Is the Sweetest of Six-Dividend-paying Consumer Staples Stocks to Purchase

The Hershey Co. received a buy recommendation and a $270 price target from BofA. With some slack in capacity, Hershey is in a better position than recent years to service demand upside if it materializes, BofA wrote in a research note.

For fiscal year 2023 guidance, HSY provided perspective on sales, pricing and inflation, causing BofA to write that it did not expect much surprise one way or another with earnings. Hershey is executing on its pricing actions and has seen lower-than-expected elasticities across its portfolio as consumers spend on sweet treats and snack in an inflationary environment, BofA wrote.

“In addition, HSY has been able to maintain share in its categories with the lowest private label exposure in its peer set,” BofA continued.

Potential outperformance could come from continued market share gains in a low private label exposure environment, faster moderation of inflation, low elasticity persisting and volume gains offsetting any pricing decelerations, BofA opined. Risks to reaching the price target include elevated inflation taking longer than expected to taper off, competitors grabbing market share from HSY and negative surprises on packaging, logistics or special ingredient costs that aren’t traditionally hedged by Hershey.

Chart courtesy of www.stockcharts.com

Six Dividend-paying Consumer Staples Stocks to Purchase: Lamb Weston

Lamb Weston Holdings, Inc. (NYSE: LW), of Eagle, Idaho, supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers worldwide. For more than 60 years, Lamb Weston has introduced inventive products that are distributed to more than 100 countries.

The company has manufacturing operations in the Pacific Northwest, arguably in the world’s best potato-growing region, the Columbia River Basin. Lamb Weston employs more than 7,000 people worldwide in sales offices, manufacturing plants and corporate offices.

BofA gave Lamb Weston Holdings a price objective of $115, a premium to the packaged food index. The investment firm wrote that the premium is warranted, since Lamb Weston is poised to approach pre-COVID levels with upside potential to improve demand trends and margin potential in fiscal year 2023 and 2024.

Chart courtesy of www.stockcharts.com

Potential Risks Could Weigh on Lamb Weston

Potential outperformance for Lamb Weston to surpass its $115 price target could come from demand rebounding faster than expected and category growth staying above 3% to allow tight industry supply to continue in the medium- to long-term. Tight industry supply allows for further price increases across both global and food service customers, BofA wrote.

Risks to reaching the $115 price target include higher-than-expected potato costs for 2022, struggling to push through additional pricing to cover inflation and restore margins, influx of new industry capacity and slowdown in on-premises activity if the consumer has less spending power.

Bryan Perry, the leader of the Cash Machine investment newsletter and the Breakout Options Alert trading service, recommended Lamb Weston call options in the latter service. The trade is almost up by 10% since the recommendation and the stock is up 11.78% so far this year.

Russia’s War Against Ukraine Intensifies

The six dividend-paying consumer staples stocks to purchase are mostly insulated from the fierce fighting currently occurring in Bakhmut, Ukraine, where Russian forces are trying to gain control of a key highway and disrupt supplies. Russian airborne units have joined Wagner mercenary fighters in the battle for the city.

Russia’s troops are “leveling Bakhmut to the ground, killing everyone they can reach,” Pavlo Kyrylenko, a Ukrainian prosecutor and politician who also is the current Governor of Donetsk Oblast, wrote on Telegram. Russia claimed on Tuesday, Feb. 1 to have captured a village just to north of Bakhmut as it seeks to surround the city itself and seize control.

The U.S. State Department accused Russia of violating a key nuclear arms agreement by refusing to allow inspections of its nuclear facilities. The only agreement left to regulate the nuclear arsenals of the United States and Russia is the New START treaty, but inspections have been on hold since 2020 due to the COVID-19 pandemic.

Russia is sustaining its onslaught of increased strikes that began in October, targeting Ukraine’s energy and civilian infrastructure. Meanwhile, Ukraine is seeking and receiving additional tanks by its allies to fend off Russia’s unrelenting attack.

COVID Deaths Rise, But President Biden Plans to End COVID Public Health Emergency Declaration in May

President Biden announced earlier this week that he planned to end the current U.S. public health emergency declaration due to COVID-19 this May. However, worldwide COVID-19 deaths rose to 6,840,062 people, with total cases of 671,502,472, Johns Hopkins reported on Feb. 3. COVID-19 cases in the United States totaled 102,586,687, while deaths reached 1,111,485 as of Feb. 3, according to Johns Hopkins University. Until recent reports that China had 248 million cases of COVID-19, America had ranked as the nation with the most coronavirus cases and deaths.

The U.S. Centers for Disease Control and Prevention reported that 269,064,626 people, or 81.0% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Feb. 1. People who have completed the primary COVID-19 doses totaled 229,719,115 of the U.S. population, or 69.2%, according to the CDC. The United States has given a bivalent COVID-19 booster to 49,078,211 people who are age 18 and up, equaling 19% as of Feb. 1, compared to 18.8% as of Jan. 26, 18.5% on Jan. 18, 18.2% on Jan. 11, 17.7% as of Jan. 4, 17.3% on Dec. 28, 16.8% the previous week, 16.3% the week before that one and 15.5% the preceding week.

The six dividend-paying consumer staples stocks to purchase offer tempting investment opportunities in beverages, food and personal care products.

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

Three dividend-paying space stocks aim for profitable orbits as the industry seeks to launch past 2022’s weak performance amid Russia’s war in Ukraine.

The three dividend-paying space stocks offer income payouts and potential share price appreciation. Part of the reason many space stocks struggled in 2022 stemmed from weak results of special-purpose acquisition companies (SPACs) that operate as shell organizations to merge with private companies.

SPACs serve as an alternative to traditional initial public offerings (IPOs), and typically have no tangible assets other than the cash they obtained from investors. Transactions involving private companies going public through a combination with a SPAC are called de-SPACs.

Long Beach, California-based Rocket Lab (NASDAQ: RKLB) became the space industry’s top-performing de-SPAC last year among the stocks tracked by BofA Global Research, yet RKLB still underperformed the S&P 500, which dropped 19.44% in 2022. In fact, the S&P 500 endured its worst performance in 14 years. Astra Space (NASDAQ: ASTR), the worst-performing stock in BofA’s coverage universe, traded down 94% last year.

“We believe the strong underperformance of these names can be attributed to a multitude of factors — general de-SPAC discount, limited institutional ownership and pre-earnings nature of most businesses,” BofA wrote in a recent research note.

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Three Dividend-paying Space Stocks Feature General Dynamics

General Dynamics (NYSE: GD), a global aerospace and defense company based in Reston, Virginia, is a recommendation of stock picker Jim Woods in his monthly Intelligence Report investment newsletter. He put the dividend-paying space and defense stock in his Income Multipliers portfolio.

Woods, a seasoned investment guru and the leader of the Bullseye Stock Trader advisory service that features stocks and options, keeps a close watch on space and defense stocks. Woods is a former Army paratrooper who has a track record of investing profitably in space and defense stocks.

Paul Dykewicz meets with Jim Woods, head of Bullseye Stock Trader.

General Dynamics has worked closely on space missions for decades with NASA and the U.S. military. The company’s management boasts that General Dynamics currently has its telecommunications technology circling multiple planets.

Indeed, General Dynamics Mission Systems enabled Neil Armstrong, the U.S. astronaut who became the first man on the moon in 1969, to transmit back to Earth his famous words of “one small step for man, one giant leap for mankind.” General Dynamics also will serve a pivotal role when NASA heads back to the lunar surface as part of the Artemis program.

The first trip in the Artemis program featured Artemis I, which launched from the Kennedy Space Center in Florida on November 16, 2022. General Dynamics built the S-Band transponders and emergency radios for the Orion spacecraft.

Orion, the first spacecraft built for crewed deep space missions, will have two transponders for redundancy and an emergency radio built by the Space and Intelligence Systems team of General Dynamics. When Orion’s crew makes its first trip to space, General Dynamics’ transponders will keep the astronauts connected to mission command centers on Earth.

Three Dividend-paying Space Stocks Show Growth

Giant General Dynamics employs more than 100,000 people worldwide and generated $38.5 billion in revenue in 2021. The company also received a “buy” recommendation from BofA, which set a price objective of $305, based partly on a 5.0% 2025-2030 growth rate and 2.8% long-term growth rate, as well as increased defense budget expectations. BofA wrote that the company’s defense program provides exposure to land and sea priorities, coupled with its Gulfstream business jet manufacturing segment, offering near-term and medium-term organic growth.

Other pluses are the company’s strong balance sheet and solid cash generation, helping to sustain dividend growth and share repurchases, BofA wrote. Potential downside risks to reaching that price target, according to BofA, are a possible drop in business jet sales due to an exogenous factor and the pricing of business jets in dollars, making the company vulnerable to an unexpected devaluation of the U.S. dollar that could significantly impact orders. Any adverse impact on margins for defense programs and unforeseen government budget cuts could limit its growth.

On the defense side, General Dynamics produces combat vehicles, nuclear-powered submarines and communications systems to provide safety and security during military missions. Woods noted that the company pays a dividend that currently yields more than 2%.

Chart courtesy of www.stockcharts.com

Iridium Stands out as the Second of Three Dividend-paying Space Stocks

McLean, Virginia-based Iridium Communications Inc.’s (NASDAQ: IRDM) CEO Matthew Desch and Vice President of Investor Relations Ken Levy met with analysts at Chicago-based investment firm William Blair on Jan. 17 to discuss a Qualcomm Inc. (NASDAQ: QCOM) Snapdragon Satellite (QSS) partnership. The Iridium leaders emphasized that their company’s core business was growing 10% annually, before factoring in the new Qualcomm smartphone partnership.

William Blair’s analyst Louie DiPalma described the Qualcomm partnership as “net incrementally positive.” Iridium shares are up 14.88% year-to-date on top of its 25% return in 2022. Despite the increased valuation, the investment firm forecasts further upside in 2023 to a range of $63 to $78, up from the investment firm’s prior projected range of $60 to $75. Iridium’s stock closed at $59.03 on Jan. 27.

Chart courtesy of www.stockcharts.com

Iridium’s third in-orbit satellite constellation may cost less than the $3 billion required for Iridium NEXT. Iridium spent $3 billion to fund its 66-satellite constellation from 2010 through 2019, before it likely will have another hefty capital expenditure from 2030 through 2037. Desch estimated that the company’s third-generation constellation should cost less than the $3 billion it paid for its NEXT constellation, partly due to SpaceX’s Starship launch vehicle slashing the cost to reach orbit by half.

Three Dividend-paying Space Stocks Show Promise in Auto Applications

Iridium management voiced optimism about opportunities associated with the auto sector and machine-to-machine (M2M) data. The auto industry has the potential to generate significantly more usage fees per device than smartphones.

Consumer internet of things (IoT) cannibalization should be mitigated by new features. Iridium has consumer IoT messaging partnerships with Garmin (NYSE: GRMN), Zoleo and Bixby.

These partners should unveil devices that will let users send and receive picture messages. The enhanced feature, along with an ecosystem of products, should provide differentiation relative to the Qualcomm Snapdragon Satellite partnership and allow the consumer IoT segment to keep its momentum.

“Carrier subsidies could be a source of upside,” DiPalma wrote. “Cellular carriers or device OEMs such as Samsung may subsidize recreational messaging plans to drive customers.

Iridium will continue to be valued on a sum-of-the-parts basis, DiPalma wrote. First, he estimated Iridium’s interest in Aireon is worth $4.35 per share. Second, he gave a free cash flow (FCF) multiple of 22 times to 28 times his 2024 FCF estimate of $63 to $78 per share for the next 12 months. The valuation estimates of William Blair do not factor in the smartphone partnership.

“We believe that this FCF yield is warranted due to Iridium’s strong competitive moat,” DiPalma wrote. “In our view, Iridium deserves this premium multiple due to its record of execution and new products and services in the pipeline.”

Iridium Rated ‘Outperform’ as One of Three Dividend-paying Space Stocks

For these reasons, William Blair reiterated an “outperform” rating on Iridium. The main risk for Iridium’s stock is that its smartphone technology experiences quality of service issues or Samsung does not initially adopt the satellite service.

Iridium is the leading global provider of low Earth orbit L-band satellite services for customers across commercial, aviation, recreation, maritime, and defense markets. Environmental, social and governance (ESG) considerations should be accounted for when assessing Iridium. The most important considerations for Iridium and the satellite sector generally relate to space sustainability and the risks associated with orbital debris and orbital collisions.

Consider the de-orbiting process for the original Iridium satellite constellation. Working satellites were removed within 30 days of service being turned off. However, there are many nonworking Iridium satellites that remain in orbit.

Iridium has collaborated with the Combined Space Operations Center (CSpOC) to develop optimal practices for collision mitigation. Iridium publishes an annual ESG report. In 2021, Iridium appeared on Newsweek’s “America’s Most Responsible Companies” list.

Three Dividend-paying Space Stocks: Leidos Holdings

Reston, Virginia-based Leidos (NYSE: LDOS), a science and technology company, has been awarded prime contracts by the U.S. Army. One example is the Geospatial Center’s (AGC) High-Resolution Three Dimensional (HR3D) Geospatial Information Operation and Technology Integration program. That single-award contract has an estimated value of $600 million, if all options are exercised.

The period of performance for the contract includes a one-year base, as well as three one-year options. Work will be performed predominantly in Virginia and other locations.

Chart courtesy of www.stockcharts.com

Leidos, previously known as Science Applications International Corporation, serves the U.S. defense, aviation, information technology and biomedical research industries. The company also provides scientific, engineering systems integration and technical services.

Three Dividend-paying Space Stocks: BofA Recommends Leidos

BofA set a price target of $130 on Leidos, forecasting that the company should trade in line in the defense prime contractors amid strong U.S. national security demand for innovative technologies and solutions. The company also has solid free cash flow, countered by a lumpy contract award environment, near-term supply chain pressures and mounting concerns about labor inflation.

Risks to reach the price target include cuts to the U.S. government budget, compared to expectations, increased competition from non-traditional competitors and problems integrating mergers and acquisitions (M&As), hiring the right personnel, containing costs, estimating costs and executing on fixed price contracts. The company also could face reputational risk.

Potential outperformance could come from a better-than-expected federal budget allocated to innovative technologies and modernization, inexpensive and well-integrated M&A activity, along with unexpected capital return to shareholders through dividends or share buybacks, market share gains, or better-than-forecast margin, BoA wrote.

Michelle Connell, who leads Dallas-based Portia Capital Management, recommends Leidos as a strong mid-cap defense stock that is not covered as prominently as the large-cap stocks in the industry. The company has a large domestic customer base that produces 90% of its revenues.

Michelle Connell heads Dallas-based Portia Capital Management.

LDOS has a record for beating earnings estimates, and it is likely to beat estimates again on Feb. 15 when the company reports, Connell said.

“The options market has an interesting take on the stock,” Connell said. “When you break down the part of the premium that compensates for implied volatility, the compensation is high for the Feb. 17 calls.”

This means that the options market expects a big move one way or another for the stock, Connell said. Given that Leidos typically exceeds expectations, it would be logical for the stock to outperform estimates, she added.

With the company’s stock price down 8.27% so far this year through Friday, Jan. 27, maybe the market has been incorrect in its recent assessment, Connell continued.

Skousen Questions SpaceX Chairman Elon Musk

Mark Skousen, the head of the Forecasts & Strategies investment newsletter, also is a leader of the Fast Money Alert trading service that invests in stocks and options. Skousen queried SpaceX and Tesla (NASDAQ: TSLA) founder Elon Musk at the annual Baron Investment Conference held in New York on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its Argyros School of Business and Economics, recommended Tesla in Fast Money Alert this month due to the stock’s reduced valuation after it plunged 66.3% in the last year.

Mark Skousen, a scion of Ben Franklin and chief of Fast Money Alert, meets Paul Dykewicz.

Skousen and Woods, co-leaders of the Fast Money Alert trading service, combined to produce a short-term gain of nearly 10% with their Oct. 3 recommendation of defense, space and cyber consulting firm Booz Allen Hamilton (NYSE: BAH), of McLean, Virginia. The call options they recommended soared 239.27% in just 28 days before they advised selling.

Non-Dividend-paying Rocket Lab Misses Qualifying for List

Non-dividend-paying Rocket Lab received a $13 price objective from BofA, based on a long-term discounted cash flow (DCF) of Base, Bull, and Bear cases for different revenue and cash generation scenarios between now and 2035. BofA’s DCF factors in a 13% discount rate and assigns 33% probability to the Base case, 33% probability to the Bull case and a 33% probability to the Bear case.

BofA employs a lower discount rate relative to peers to account for the company’s more mature launch capabilities. In its view, the equal weighting fairly reflects current investor risk appetite, momentum for new technology space stocks and the perceived viability of Rocket Lab’s business model compared to peers.

Risks to BofA’s price objective are persistent COVID-19 restrictions in New Zealand, production delays, constellation launch market remaining captive to certain providers, setbacks to the economic recovery, inability to achieve mergers and acquisitions (M&A) synergies and setbacks to Neutron vehicle development. Potential outperformance could come from better-than-expected cost cutting and margin expansion, well-integrated M&A activity, market share gains in satellite components and services, higher reutilization levels and better-than-expected commercialization of the Neutron launch vehicle.

Chart courtesy of www.stockcharts.com

China COVID-19 News Reports Rising Deaths

China recently reported 13,000 COVID-19-related deaths in a single week. The death toll from that week is in addition to more than 60,000 deaths that the country has attributed to the virus since December.

With many people in China returning to their hometowns to celebrate the the country’s most important festival, the Lunar New Year, risk mounts that elderly people may be infected by COVID-19 from those visiting from elsewhere. Government officials have cautioned about the risk to public health.

China has been accused of lacking transparency since the virus emerged in late 2019. Critics contend China may not be sharing data about new strains that may spark fresh outbreaks in other countries.

The United States, France, Japan, India, South Korea, Taiwan and Italy have announced passengers from China need to test negative for COVID. An internal meeting of China’s National Health Commission estimated that up to 248 million people contracted the coronavirus during the first 20 days of December. COVID-19 still is raging through cities in China.

Three Dividend-paying Space Stocks Affected by COVID 

Worldwide COVID-19 deaths soared to 6,741,826 people, with total cases of 670,075,077, Johns Hopkins reported on Jan. 27. COVID-19 cases in the United States totaled 102,277,103, while deaths reached 1,107,634, as of Jan. 27, according to Johns Hopkins University. Until reports found China had 248 million cases of COVID-19, America had ranked as the nation with the most coronavirus cases and deaths.

The U.S. Centers for Disease Control and Prevention reported that 268,927,705 people, or 81.0% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Jan. 26. People who have completed the primary COVID-19 doses totaled 229,619,755 of the U.S. population, or 69.2%, according to the CDC. The United States has given a bivalent COVID-19 booster to 47,859,040 people who are age 18 and up, equaling 18,8% as of Jan. 26. It marks a jump from 18.5% as of Jan. 18, from 18.2% on Jan. 11, 17.7% as of Jan. 4, 17.3% on Dec. 28, 16.8% the previous week, 16.3% the week before that one and 15.5% the preceding week.

Ukraine’s President Volodymyr Zelensky’s secret Dec. 21 flight to Washington, D.C., let him to speak face-to-face with U.S. President Joe Biden to advocate for essential military equipment to defend against Russia’s continuing attacks. Zelensky’s address to a joint session of Congress that evening gained support from many U.S. lawmakers. The surprise visit marked Zelensky’s first international trip since Russia invaded Ukraine.

Russia is sustaining its onslaught of intensified strikes that began in October, targeting Ukraine’s energy and civilian infrastructure.

War Against Ukraine Fails to Ground Three Dividend-paying Space Stocks

Even though Russia’s leaders describe their attack of Ukraine launched on Feb. 24 as a “special military operation,” its soldiers are intensifying their assault of Ukraine, especially the city of Bakhmut. News reports indicate Russia seized control of Soledar, a nearby city in eastern Ukraine.

Secretary of Defense Lloyd Austin cautioned that time is short for the United States and other Western countries to provide Ukraine with advanced tanks required to thwart a Russian offensive in the spring. Ukraine not only needs the tanks and other weapons but the training to use them.

The Ukraine Defense Contact Group, a group of U.S.-assembled defense ministers, announced major new commitments of weapons, including an additional $2.5 billion of Bradley fighting vehicles, Stryker vehicles and other important tanks and military equipment.

The three dividend-paying space stocks have many capabilities, including vital communications from space that can aid military personnel. With Russia’s military releasing criminals to serve in the front lines of attacks to let its commanders identify Ukrainian forces offering resistance, the death toll is mounting for both sides.

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

Seven dividend-paying defense stocks serving the U.S. Army and shareholders are surging amid the most monumental procurement cycle since President Ronald Reagan’s two terms in the 1980s.

The seven dividend-paying defense stocks serving the U.S. Army and shareholders received a lift Dec. 29 when President Biden signed a $1.7 trillion federal spending bill that provided the U.S. Department of Defense (DoD) $797.7 billion in discretionary funds for fiscal year 2023, up $69.3 billion, or 9.5%, from fiscal year 2022. The amount appropriated by Congress for the national defense topped the president’s DoD budget request by $36.1 billion.

The spending is intended to develop, maintain and equip the U.S. military and intelligence community. The beefed up funding also expanded weapons procurement by $5.9 billion, a $1.1 billion increase from President Biden’s request, as Russia wages war against Ukraine.

Another threat is China’s military flyovers and other provocations against Taiwan, Japan, South Korea and other nations in the Asia-Pacific region. Bipartisan support for enhanced U.S. defense spending resembles what occurred with President Reagan’s unwavering support of a strong national defense that started with his inauguration on January 20, 1981, and carried through his second term on January 20, 1989.

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Seven Dividend-paying Defense Stocks Serving the U.S. Army and Shareholders: Hexcel

The seven dividend-paying defense stocks serving the U.S. Army and shareholders topped the overall 2022 market performance by jumping as the major indices fell. Momentum seems intact for 2023 on the heels of President Biden signing legislation to enhance U.S. warfighting capabilities.

One of the defense stocks that is strongly supporting the U.S. Army is Hexcel (NYSE: HXL), a Stamford, Connecticut, company engaged in the space and defense market. Hexcel manufactures advanced composites used in commercial helicopters and in military aircraft. It currently is qualified to supply materials to a broad range of more than 100 helicopter, military aircraft and space programs.

Chart courtesy of www.stockcharts.com

Seven Dividend-paying Defense Stocks Serving the U.S. Army: Hexcel

Hexcel’s top 10 programs by revenues represent about 56% of sales for its Space and Defense business segment. Key programs include the F-35 joint strike fighter, or JSF, Sikorsky CH53K King Stallion, V-22 Osprey tilt rotor aircraft, UH60M Blackhawk, AH-64 Apache, A400M military transport, European Fighter Aircraft (Typhoon), F/A-18E/F (Hornet), Rafale fighter jet, and MH90 Enforcer.

Space applications for advanced composites include solid rocket booster cases, fairings and payload doors for launch vehicles, and bus and solar arrays for military and commercial satellites. Hexcel also produces advanced composites for helicopter blades. Numerous new helicopter programs in development, as well as upgrade or retrofit programs, have an increased reliance on composite materials products such as carbon fiber, prepregs and honeycomb core to improve blade performance.

BoA Global Research placed a buy recommendation on Hexcel. The investment firm placed a $70 price objective on the stock.

Jim Woods, a seasoned stock picker and the leader of the Bullseye Stock Trader advisory service, recommends stocks and options that include defense investments. Woods, who concurrently heads the Intelligence Report investment newsletter, is a former Army paratrooper who has invested in defense stocks profitably. Woods recently recommended the stock and options in a traditional defense investment.

Paul Dykewicz meets with Jim Woods, head of Bullseye Stock Trader.

Seven Dividend-paying Defense Stocks Serving the U.S. Army: Howmet Aerospace

Howmet Aerospace (NYSE: HWM), an advanced engineering company in Pittsburgh, received a buy recommendation and a $45 a share price target from BoA Global Research. The JSF hits Mach 1.6 under the thrust of possibly the most advanced engine on earth. It is built with cutting-edge materials, integrated airframe design and next-generation avionics to enable this fifth-generation fighter to operate with unprecedented stealth, speed and agility in air-to-air and air-to-ground combat.

In developing this complex machine, Lockheed Martin (NYSE: LMT) turned to Howmet Aerospace for many of its critical parts. These include single-piece forged aluminum bulkheads that form the “backbone” of the aircraft structure and save 300 to 400 pounds per jet, while cutting costs by 20%. The fighter jet also has titanium bulkheads and uses titanium to manufacture other airframe structures for all three F-35 JSF variants. Howmet supplies single-crystal, nickel-based superalloy blades and vanes that operate in environments hotter than the melting point of the metal to propel the engine.

Joint Strike Fighter Is a Multirole Combat Jet Capable of Flying at Mach 1.6.

To hold together the design, Howmet’s vibration-resistant fasteners are engineered to endure the most extreme G-forces and performance requirements. From nose to tail, Howmet Aerospace helps its customers meet aggressive weight, range and fuel efficiency targets to enable the F-35 to do what other military aircraft cannot.

Woods also teams up with Mark Skousen, the head of the Forecasts & Strategies investment newsletter, on the Fast Money Alert trading service that invests in stocks and options. Skousen queried SpaceX and Tesla (NASDAQ: TSLA) founder Elon Musk at the annual Baron Investment Conference held in New York on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its Argyros School of Business and Economics, recommended Tesla with Woods in Fast Money Alert earlier this month due to the stock’s reduced valuation, after plunging 64.4% in the last year through Jan. 17.

Mark Skousen, a scion of Ben Franklin and chief of Fast Money Alert, meets Paul Dykewicz.

Seven Dividend-paying Defense Stocks Serving the U.S. Army: Lockheed Martin

Lockheed Martin Corp. (NYSE: LMT) is the top defense stock that Woods chose to offer attendees at the 2023 MoneyShow selections. LMT is the world’s largest defense contractor, and it has dominated the Western market for high-end fighter aircraft since the F-35 program was awarded in 2001. Lockheed’s largest segment is aeronautics, but the company also offers rotary and mission systems, missiles and fire control and space systems.

In December 2022, the United States was in the process of finalizing plans to provide Ukraine with Patriot missile-defense systems in its war against Russia, and this could be a big revenue driver for LMT. That’s because while the Patriot system is built by Raytheon Technologies (NYSE: RTX), the missiles it fires are made by Lockheed.

Think of the Patriot deal as offering bullish “NewsQ,” i.e., information that can lift stocks, Woods said. Such news can help drive LMT shares higher in 2023, Woods added.

“Yet what I like about LMT is not just the bullish NewsQ, but also its earnings growth and its 2022 share price performance,” Woods commented. “On the earnings front, the company’s recent quarterly and annual earnings per share growth rates are in the top quintile of all companies, and I expect this metric to rise into next year.”

On the share price performance front, LMT’s 2022 gain vaulted it into the top 6% of all companies in terms of relative price strength, Woods commented. Finally, the ongoing Russia/Ukraine war shows the world is still a very dangerous place, and one where conventional warfare in Europe could very well be a reality. As a result, governments must get ready, and that means they need LMT capabilities.

Chart courtesy of www.stockcharts.com

Seven Dividend-paying Defense Stocks Serving the U.S. Army: L3Harris Technologies

L3Harris Technologies (NYSE: LHX), a Melbourne, Florida-based defense contractor and information technology services provider, produces C6ISR systems and products, wireless equipment and tactical radios. It also netted a buy recommendation from BofA Global Research. The defense company, consisting of Integrated Mission Systems; Space & Airborne Systems, and Communication Systems, received a $285 price objective from BofA.

The valuation is in line with the median for a pure play defense stock, BofA wrote. However, an improved sentiment on defense spending should sustain a relative valuation slightly above the historical average, the investment firm added.

Potential reasons for the company to beat its price target include winning more business on new and existing programs versus BofA’s current expectations. Risk to the stock includes possible integration of past acquisitions that may put a strain on the company’s cash and impact free cash flow estimates.

Chart courtesy of www.stockcharts.com

MAG Aerospace and L3Harris Technologies provide enhanced intelligence, surveillance and reconnaissance (ISR) aircraft to support the Army’s Theater Level High-Altitude Expeditionary Next Airborne ISR Radar (ATHENA-R) program. The ATHENA-R aircraft, converted Bombardier Global Express 6500s with ISR mission capabilities, will support U.S. Army missions in the U.S. Indo-Pacific Command area. Designed to close the gap between the Army’s medium- and high-altitude ISR aircraft fleet, the ATHENA-R provides longer range, greater endurance, more capacity for bigger payloads and standoff ranges, as well as leading-edge sensor technology.

The partnership with L3Harris should deliver breakthrough C5ISR capability to Army combatant commands, said Joseph Reale, CEO, MAG Aerospace. The two companies will equip the aircraft with new radar and electronic and communications intelligence capabilities. MAG delivers world-class command, control, computers, communications, cyber and ISR service delivery expertise to bring turnkey disruptive technology to U.S. government and allied customers around the world. L3Harris currently operates a Bombardier Global Series jet as part of its Airborne Reconnaissance and Electronic Warfare System (ARES) supporting Army Pacific Command and expands its extensive Army ISR portfolio as part of the L3Harris and MAG ATHENA partnership.

Seven Dividend-paying Defense Stocks Serving the U.S. Army: Leidos Holdings

Reston, Virginia-based Leidos (NYSE: LDOS), a science and technology company, has been awarded a prime contracts by the U.S. Army to support the U.S. Army. One example is the Geospatial Center’s (AGC) High-Resolution Three Dimensional (HR3D) Geospatial Information Operation and Technology Integration program. That single-award contract has a total estimated value of $600 million if all options are exercised.

The period of performance for the contract includes a one-year base, as well as three one-year options. Work will be performed predominately in Virginia and other locations.

Chart courtesy of www.stockcharts.com

Leidos, previously known as Science Applications International Corporation, serves the U.S. defense, aviation, information technology and biomedical research industries. The company also provides scientific, engineering systems integration and technical services.

Seven Dividend-paying Defense Stocks Serving the U.S. Army: BofA Recommends Favorites

BofA set a price target of $130 on Leidos, forecasting that the company should trade in line in the defense prime contractors amid strong U.S. national security demand for innovative technologies and solutions. The company also has solid free cash flow, countered by a lumpy contract award environment, near-term supply chain pressures and mounting concerns about labor inflation.

Risks to reach the price target include cuts to the U.S. government budget, compared to expectations, increased competition from non-traditional competitors and problems integrating mergers and acquisitions (M&As), hiring the right personnel, containing costs, estimating costs and executing on fixed price contracts. The company also could face reputational risk.

Potential outperformance could come from a better-than-expected federal budget allocated to innovative technologies and modernization, inexpensive and well-integrated M&A activity, along with unexpected capital return to shareholders through dividends or share buybacks, market share gains, or better-than-forecast margin, BoA wrote.

Seven Dividend-paying Defense Stocks Serving the U.S. Army: $600 Million Geospatial Center Support

General Dynamics (NYSE: GD), a global aerospace and defense company based in Reston, Virginia, is a recommendation of stock picker Jim Woods in his monthly Intelligence Report investment newsletter. He put the dividend-paying defense stock in his Income Multipliers portfolio.

The company produces combat vehicles, nuclear-powered submarines and communications systems to provide safety and security during military missions. General Dynamics employs more than 100,000 people worldwide and generated $38.5 billion in revenue in 2021. Woods noted that the company pays a dividend that currently yields more than 2%.

General Dynamics also received a “buy” recommendation from BofA, which set a price objective of $305, based partly on a 5.0% 2025-2030 growth rate and 2.8% long-term growth rate, as well as increased defense budget expectations. BofA wrote that the company’s defense program provides exposure to land and sea priorities, coupled with its Gulfstream business jet manufacturing segment, offering near-term and medium-term organic growth.

Other pluses are the company’s strong balance sheet and solid cash generation, helping to sustain dividend growth and share repurchases, BofA wrote. Potential downside risks to reaching that price target, according to BofA, are a possible drop in business jet sales due to an exogenous factor and the pricing of business jets in dollars, making the company vulnerable to an unexpected devaluation of the U.S. dollar that could significantly impact orders. Any adverse impact on margins for defense programs and unforeseen government budget cuts could limit growth in the medium- and long-term.

Chart courtesy of www.stockcharts.com

Seven Dividend-paying Defense Stocks Serving the U.S. Army: Northrop Grumman

Northrop Grumman (NYSE: NOC), a multinational aerospace and defense technology company headquartered in Falls Church, Virginia, is one of the world’s largest weapons manufacturers and military technology providers with 90,000 employees and $30 billion-plus in annual revenue. It also is a recommendation of BofA and has the potential to rise 20-25% in the next 12-18 months compared to the company’s current share price, said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management.

Michelle Connell leads Dallas-based Portia Capital Management.

Increased geopolitical tensions do not look likely to end soon and defense stocks should continue to have an allocation in an investor’s portfolio, Connell counseled. Until the “exacerbated pullback” in the markets, defense stocks such as Northrop Grumman had performed very well, she added.

Northrop Grumman stands out from the defense pack, Connell said, partly due to:

-Developing the first B-21 bomber for the Air Force, after the company passed its first round of tests about the efficacy of the bomber that is expected to be released in 2023.

-Preparing next-generation ballistic missile systems under the name of Sentinel.

-Growing three-year revenue and profits strongly, even though sales were weak in the last quarter due to shortages of labor and supply chain issues that could continue into the rest of 2022.

Interested buyers of the stock may want to wade in with purchases and take a first step before July 29 to receive the next dividend payment, Connell advised.

Seven Dividend-paying Defense Stocks Serving the U.S. Army Supported by Institutional Buying

“I take some solace in knowing that before the recent pullback, the stock volume and institutional buying for NOC had increased,” Connell said.

BofA derived a $550 price objective on the stock, partially due to a 4% year over year growth rate for 2025-2030 estimates and a 2.5% long-term growth rate. In addition, the U.S. Defense Budget Authorization has grown at a 1.8% compound annual growth rate (CAGR) in constant dollars since post World War II, BofA’s Epstein wrote.

Northrop Grumman’s growth rate may exceed the industry norm with the most profitable production phase of the B-21 Raider program starting in about 10 years and the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) entering production at the end of this decade. The GBSD is the replacement weapon system for the aging LGM-30 Minuteman III intercontinental ballistic missile (ICBM) system.

Potential risks to the stock include possible defense program cost overruns and margin contractions. Further stumbles could come from unexpected cancellations to both the company’s commercial and military programs.

Chart courtesy of www.stockcharts.com

Seven Dividend-paying Defense Stocks Serving the U.S. Army Cannot Safeguard China from COVID

Satellite images of Chinese cities have shown crowding at crematoriums and funeral homes, with the world’s most populous country waging a battle with a new wave of COVID-19 infections after relaxing its strict pandemic restrictions.

The number of COVID-19 cases has reached a record high in mainland China, according to the European Centre for Disease Prevention and Control (ECDC). However, cases in China reportedly have fallen in recent weeks, but possibly due to reduced availability of tests to detect cases.

The U.S. government began requiring negative COVID-19 tests starting Thursday, Jan. 5, for all passengers seeking to enter the country from China after the latter country’s spike in COVID-19 cases. France and several other countries also mandated clean COVID-19 tests for passengers arriving from China, reflecting global concern that new variants could emerge in the ongoing outbreak.

China has been accused of lacking transparency since the virus emerged in late 2019. Critics contend China may not be sharing data about evolving strains that may spark fresh outbreaks in other countries.

Along with the United States, Japan, India, South Korea, Taiwan and Italy have announced passengers from China will need to test negative for COVID. An internal meeting of China’s National Health Commission estimated that up to 248 million people contracted the coronavirus during the first 20 days of December. COVID-19 still is roaring through cities in China.

Satellite images of Chinese cities have shown crowded crematoriums and funeral homes, with the world’s most populous country battling a new wave of COVID-19 infections after relaxing its strict pandemic restrictions. The number of COVID-19 cases has reached a record high in mainland China, according to the European Centre for Disease Prevention and Control (ECDC). However, cases in China reportedly have fallen in recent weeks, possibly due to reduced availability of tests.

The U.S. government began requiring negative COVID-19 tests starting Thursday, Jan. 5, for all passengers seeking to enter the country from China after the latter country’s spike in COVID-19 cases. France and several other countries also mandated clean COVID-19 tests for passengers arriving from China, reflecting global concern that new variants could emerge.

China has been accused of lacking transparency since the virus emerged in late 2019. Critics contend China may not be sharing data about evolving strains and fresh outbreaks.

Seven Dividend-paying Defense Stocks Serving the U.S. Army as COVID Cases Surge 

Worldwide COVID-19 deaths soared to 6,737,944 people, with total cases of 668,580,496, Johns Hopkins announced on Jan. 20. COVID-19 cases in the United States totaled 101,998,621, while deaths reached 1,104,103, as of Jan. 20, according to Johns Hopkins University. Until reports found China had 248 million cases of COVID-19, America had ranked as the nation with the most coronavirus cases and deaths.

The U.S. Centers for Disease Control and Prevention reported that 268,765,902 people, or 81.0% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Jan. 18. People who have completed the primary COVID-19 doses totaled 229,08,443 of the U.S. population, or 69.1%, according to the CDC. The United States has given a bivalent COVID-19 booster to 47,859,040 people who are age 18 and up, equaling 18.5% as of Jan. 18, up from 18.2% on Jan. 11, 17.7% as of Jan. 4, 17.3% as of Dec. 28, rising from 16.8% the previous week, up from 16.3% the week before that one and and jumping from 15.5% the preceding week.

Ukraine’s President Volodymyr Zelensky’s secret Dec. 21 flight to Washington, D.C., allowed him to speak face-to-face with U.S. President Joe Biden to advocate for needed military equipment to defend effectively against Russia’s continuing attacks. Zelensky’s address to a joint session of Congress that evening appears to have swayed many U.S. lawmakers. The surprise visit marked Zelensky’s first international trip since Russia’s invasion.

Russia is sustaining its onslaught of intensified strikes that began in October, targeting civilianUkraine’s energy and civilian infrastructure.

Seven Dividend-paying Defense Stocks Serving the U.S. Army Amid Russia’s War Against Ukraine

Even though Russia’s leaders describe their attack of Ukraine launched on Feb. 24 as a “special military operation,” its soldiers are intensifying their assault of the Ukrainian city of Bakhmut. One of Russia’s military leaders claimed his troops had gained control of a key nearby city in eastern Ukraine called Soledar.

Secretary of Defense Lloyd Austin recently cautioned that time is short for the United States and other Western countries to provide Ukraine with the advanced weapons it needs prior to a stepped-up Russian offensive in the spring. Ukraine not only needs the weapons but training in how to use them.

The Ukraine Defense Contact Group, a group of U.S.-assembled defense ministers, announced major new commitments of weapons, including an additional $2.5 billion of Bradley fighting vehicles, Stryker vehicles and other important military equipment. Both the United States and Germany thus far have been unwilling to provide their best battlefield tanks.

The seven-dividend-paying defense stocks serving the U.S. Army also supply the Ukraine and other places seeking to preserve freedom from invading nations. Billions of dollars of Western weapons have been sent to Ukraine and others reportedly are on the way. With Russia’s military releasing criminals to serve in the front lines of attacks to let commanders identify pockets of Ukrainian resistance, then have contractor solider Kremlin leaders have called up 300,000 conscripts and plans to expand the eligible age for its draft as part of an announced strategy to wage a long-term war that should continue to attract investors to dividend-paying defense investments that focus on protecting freedom around 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. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Holiday Offer: Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is 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.

Dividend-paying defense investments serve the U.S. Navy and reward shareholders for their patience as they team up for what could be the largest procurement cycle since the Reagan administration in the 1980s.

The dividend-paying defense investments’ strong returns in 2022 gained a boost on Dec. 29 when President Biden signed a $1.7 trillion federal spending bill that gave the U.S. Department of Defense (DoD) $797.7 billion in discretionary funds for fiscal year 2023, up $69.3 billion, or 9.5%, compared to fiscal year 2022. The amount appropriated for the national defense topped the president’s budget request by $36.1 billion.

The spending is aimed at developing, maintaining and equipping the U.S. military and intelligence community. The legislation also expanded weapons procurement by $5.9 billion, a $1.1 billion increase from President Biden’s request, to allow the Navy to obtain 2,365 munitions as Russia’s war against Ukraine rages. At the same time, China is increasing its threatening military flyovers and other provocations against Taiwan and elsewhere in the Asia-Pacific region.

Bipartisan support for increased U.S. defense spending resembles what occurred during President Reagan’s pro-military administration that began with his inauguration on January 20, 1981, then ended at the conclusion of his second term on January 20, 1989.

Dividend-paying Defense Investments Powered Partly by Navy Spending Surge 

The dividend-paying defense investments to serve the U.S. Navy outperformed the market in 2022 by rising when the major indices were falling. The momentum appears to be advancing for 2023 on the heels of President Biden signing legislation to enhance U.S. warfighting capabilities.

The omnibus budget bill signed by the president provided $31.96 billion, or $4 billion more than requested by the president, to procure 11 Navy ships. Other appropriations included three DDG-51 guided missile destroyers, two SSN-774 attack submarines, one Frigate, one T-AO Fleet Oiler, two expeditionary fast transports, one towing, salvage and rescue ship and one LPD Flight II amphibious transport dock.

Lives Depend on Dividend-paying Defense Investments

The importance of providing the right equipment for a given military mission cannot be overstated. Lives depend on it.

As a boy growing up, I learned that one of my neighbors, George Bland, had served in the U.S. Navy and participated in the famed Normandy beach amphibious landing on D-Day during World War II. After nearly drowning with his heavy backpack weighing him down as he struggled mightily to reach the shore, Bland became one of the survivors who helped to liberate France to preserve freedom in America, in Europe and much of the world.

Bland is among a “band of brothers” from America’s “Greatest Generation” who are remembered and honored again as their earthly lives come to an end. Even though he died on Dec. 31 at age 98, I remember him as a kindly, smiling neighbor, a devoted dad to his three darling daughters and a respected educator who made a positive difference upon returning home.

The following is an excerpt of a memorial poem I wrote for his family.

World War II required Americans to take a stand.

One of the best to serve was Navy’s George Bland.

When the key Normandy beach landing took place,

this hero helped to liberate France with God’s grace.

Dividend-paying Defense Investments Reward Shareholders

My late father, our dearly departed next door neighbor, Elliot Price, and many others I know also have served honorably in the Navy. The missions of today require advanced technology, sophisticated cybersecurity and other capabilities that only could have been dreamed about on D-Day, June 6, 1944.

Those modern military tools require hefty research and development (R&D) spending. However, many defense stocks not only support the Navy’s missions but also pay dividends to their shareholders.

BWX Technologies Is One of the Dividend-paying Defense Investments Serving the U.S. Navy

BWX Technologies, Inc. (NYSE: BWXT), a Lynchburg, Virginia-based supplier of nuclear components and fuel to the U.S. government, offers precision manufacturing for the U.S. Navy’s submarines and aircraft carriers. The latter opportunity could be big for BWX, as the U.S. Navy rebuilds its aging fleet and procures submarines and aircraft carriers.

After years of underinvestment, the United States may be in the early stages of the “strongest U.S. Navy procurement cycle” since Reagan’s presidency, according to BofA Global Research. BWT Technologies provides technical, management and site services to support the operation of complex facilities, environmental restoration activities, precision parts, services and fuel. The company also maintains a highly skilled security force to safeguard its facilities where complex operations are performed.

The U.S. Navy currently has 296 deployable ships, as compared to the goal of 355 ships that it set in 2016. Since 2019, the Navy has been working on creating a new goal of anywhere between 321 and 404 manned ships and 24-45 large, unmanned vehicles (UVs).

“A congressionally mandated Battle Force Ship Assessment and Requirement (BFSAR) report delivered to Congress in July of 2022 reportedly calls for 373 battle force ships, but the details surrounding the report are currently classified,” according to a recent BofA research report.

BofA Gives $66 Price Target to BWX Technologies 

BWX Technologies received a $66 price target from BofA, implying a 1.1x relative multiple on defense prime contractors. The premium is supported by the company’s exposure to the U.S. Navy, its monopoly on nuclear-powered ships and its diversification efforts.

Potential risks include future cuts to the DoD budget, changes in contracting terms that could hurt profit margins and possible market share loss. The U.S. government is BWX’s largest customer and accounts for about 90% of the company’s revenues, according to BofA.

Outperformance could occur if BWX achieves better-than-forecast operating results and margins, demand increases for nuclear aftermarket at power plants and the need for missile tubes on the Virginia-class and Ohio-class submarines rises. Acquisitions also may provide further upside, BofA wrote in a research note.

Chart courtesy of www.stockcharts.com

Leidos Leaps Among Dividend-paying Defense Investments

Another of the defense stocks ripe for investment is Leidos Holdings (NYSE: LDOS), based in Reston, Virginia. Previously known as Science Applications International Corporation, the company serves the U.S. defense, aviation, information technology and biomedical research, providing scientific, engineering, systems integration and technical services industries.

BofA set a price target of $130 on Leidos, forecasting that the company should trade in line with the defense prime contractors amid strong U.S. national security demand for innovative technologies and solutions. The company also has solid free cash flow, countered by a lumpy contract award environment, near-term supply chain pressures and mounting concerns about labor inflation.

Risks to reach the price target include cuts to the U.S. government budget compared to expectations, increased competition from non-traditional competitors and problems integrating M&A, hiring the right personnel, containing costs, estimating costs and executing on fixed price contracts. The company also could incur reputational risk.

Potential outperformance could come from a better-than-expected federal budget allocated to innovative technologies and modernization, inexpensive and well-integrated M&A activity, along with unexpected capital return to shareholders through dividends or share buybacks, market share gains, or better-than-forecast margin expansion, BofA wrote.

Chart courtesy of www.stockcharts.com

Michelle Connell, who heads Dallas-based Portia Capital Management, described Leidos as a strong mid-cap defense stock that is not covered as prominently as the large-cap stocks in the industry. The company has a large domestic customer base that produces 90% of its revenues.

Leidos serves the DoD, U.S. intelligence agencies, Department of Homeland Security and the Department of Veteran Affairs. With foreign government revenues currently accounting for less than 10% of the company’s total sales, that segment of the business could present “a great opportunity,” Connell counseled. The United Kingdom, Germany and other NATO allies are eyeing improvement in their military intelligence and cyber security efforts.

Strong, consistent cash-flow generation during the last 10 years has reached at least $500 billion, Connell continued. She gave the stock potential upside of 15%.

Michelle Connell leads Dallas-based Portia Capital Management.

U.S. Military Veteran Seeks out Dividend-paying Defense Investments

Jim Woods, a seasoned stock picker and the leader of the Bullseye Stock Trader advisory service, recommends stocks and options that include defense investments. Woods, who concurrently heads the Intelligence Report investment newsletter, is a former Army paratrooper who has strategically invested in defense stocks profitably. In fact, he recently recommended the stock and options in a traditional defense investment.

Paul Dykewicz talks with Jim Woods, head of Bullseye Stock Trader.

Woods also teams up with Mark Skousen, the head of the Forecasts & Strategies investment newsletter and a leader of the Fast Money Alert trading service that invests in stocks and options. Skousen queried SpaceX and Tesla (NASDAQ: TSLA) founder Elon Musk at the annual Baron Investment Conference held in New York on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its Argyros School of Business and Economics, recommended Tesla with Woods in Fast Money Alert earlier this week due to the stock’s reduced valuation, after plunging 66.3% in the last year.

Mark Skousen, a scion of Ben Franklin and chief of Fast Money Alert, meets Paul Dykewicz.

Skousen and Woods, co-leaders of the Fast Money Alert trading service, combined to produce a short-term gain of nearly 10% with their Oct. 3 recommendation of defense, space and cyber consulting firm Booz Allen Hamilton (NYSE: BAH), of McLean, Virginia. The call options they recommended soared 239.27% in just 28 days, then they advised taking the profit.

Three Funds Find Places Among Dividend-paying Defense Investments

Investors who are looking for a diversified portfolio of defense and aerospace stocks have three exchange-traded funds (ETFs) to choose from: Invesco Aerospace & Defense (PPA), iShares U.S. Aerospace & Defense (ITA) and SPDR S&P Aerospace & Defense (XAR). However, the returns between the ETFs have varied considerably in recent years because they track different indexes and can have very varied holdings, said Bob Carlson, a pension fund chairman who also heads the Retirement Watch investment newsletter.

PPA follows the SPADE Defense Index. The fund recently held 56 stocks, and its top holdings were Boeing (NYSE: BA), Raytheon (NYSE: RTX),  Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Dynamics (NYSE: GD). Its 10 largest positions were 56% of the ETF.

Chart courtesy of www.stockcharts.com

ITA follows the Dow Jones U.S. Select Aerospace & Defense Index. Its top holdings recently were Raytheon, Lockheed Martin, Boeing, TransDigm (NYSE: TDG) and Northrop Grumman. It held 35 stocks, and the top 10 holdings of the ETF comprised 75% of the portfolio.

Chart courtesy of www.stockcharts.com

XAR follows the S&P Aerospace & Defense Select Industry Index. It recently held 33 stocks, and 41% of the fund was in the 10 largest positions.

Top holdings featured Maxar Technologies (NYSE: MAXR), Spirit Aerosystems (NYSE: SPR), Boeing, Woodward Inc. (NASDAQ: WWD) and Aerojet Rocketdyne Holdings (NYSE: AJRD). The fund is down 1.24% in the last 12 months but up 20.41% in the last three months.

Chart courtesy of www.stockcharts.com

China’s COVID Cases Jump After Easing Zero-Tolerance Policy

Satellite images of Chinese cities have shown crowding at crematoriums and funeral homes, with the world’s most populous country waging a battle with a new wave of COVID-19 infections after relaxing its strict pandemic restrictions.

The number of COVID-19 cases has reached a record high in mainland China, according to the European Centre for Disease Prevention and Control (ECDC). However, cases in China reportedly have fallen in recent weeks, but possibly due to reduced availability of tests to detect cases.

The U.S. government began requiring negative COVID-19 tests starting Thursday, Jan. 5, for all passengers seeking to enter the country from China after the latter country’s spike in COVID-19 cases. France and several other countries also mandated clean COVID-19 tests for passengers arriving from China, reflecting global concern that new variants could emerge in the ongoing outbreak.

China has been accused of lacking transparency since the virus emerged in late 2019. Critics contend China may not be sharing data about evolving strains that may spark fresh outbreaks in other countries.

Along with the United States, Japan, India, South Korea, Taiwan and Italy have announced passengers from China would need to test negative for COVID. An internal meeting of China’s National Health Commission estimated that up to 248 million people contracted the coronavirus during the first 20 days of December. COVID-19 still is roaring through cities in China.

Worldwide COVID Cases Reach 666.6 Million

Worldwide COVID-19 deaths soared to 6,721,638 people, with total cases of 666,552,986, Johns Hopkins announced on Jan. 13. COVID-19 cases in the United States totaled 101,641,427, while deaths reached 1,099,823, as of Jan. 13, according to Johns Hopkins University. Until recent news that estimated China had 248 million cases of COVID-19, America had the dreaded distinction as the nation with the most coronavirus cases and deaths.

The U.S. Centers for Disease Control and Prevention reported that 268,556,888 people, or 80.9% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Jan. 11. People who have completed the primary COVID-19 doses totaled 229,359,062 of the U.S. population, or 69.1%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 45,882,482 people who are age 18 and up, equaling 18.2% as of Jan. 11, up from 17.7% as of Jan. 4, 17.3% as of Dec.28, rising from 16.8% the previous week, up from 16.3% the week before that one and and jumping from 15.5% the preceding week.

Ukraine’s President Volodymyr Zelensky’s secret Dec. 21 flight to Washington, D.C., let appeal face-to-face to U.S. President Joe Biden to successfully advocate for additional military supplies to defend against Russia’s continuing attacks. Zelensky’s address to a joint session of Congress that evening appears to have appealed to many U.S. lawmakers. The surprise visit marked Zelensky’s first international trip since Russia’s invasion.

Russia is continuing its onslaught of intensified strikes that began in October, targeting Ukraine’s energy and civilian infrastructure.

Five Dividend-paying Defense Investments Serve the U.S. Navy and the Ukraine to Defend Freedom 

Most recently, Russia, whose leaders describe their attack of Ukraine that began Feb. 24 as a “special military operation,” are escalating their assault of the Ukrainian city of Bakhmut. One of Russia’s military leaders said his troops had gained control of a nearby city in eastern Ukraine called Soledar.

The dividend-paying defense investments serve the U.S. Navy and shareholders alike as Russia wages war against Ukraine. Many U.S. weapons have been sent to Ukraine to aid in its defense to help its beleaguered people fend off Russia’s attacks against them. Kremlin leaders have called up 300,000 conscripts and plans to expand the eligible age for its draft as part of an announced strategy to wage a long-term war that should continue to attract investors to dividend-paying defense investments that focus on protecting freedom around the world.

IMPORTANT ANNOUNCEMENT: We are having our Eagle Virtual Trading Event on Thursday, Jan. 19. If you haven’t signed up for this yet, there’s still time. Just click here now to sign up for free. Believe me, you won’t want to miss this online event — as we bring together all of Eagle’s investment experts at the same time to reveal our Top 6 Picks for 2023. Reserve your seat now by clicking here.

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

 

Five dividend-paying defense investments fueled by Russia’s war in the Ukraine have outperformed the market in the past year and are showing no drop off in profiting from international efforts to protect civilians, essential infrastructure and power supplies from shelling, missiles and state-sponsored terrorism.

The five dividend-paying defense investments help the United States and its allies in aiding Ukraine as it seeks to safeguard its citizens from Russia’s military might. China, as the world’s most populous country with the second-largest economy, has been described by top U.S. government officials as America’s biggest military and economic threat, requiring new national security strategies.

The inflow of investment dollars to defense stocks as a means of portfolio protection against large drops in the overall market and the technology sector sell-off has been a major catalyst for “rerating” the sector, according to BofA Global Research. Defense stocks have been fueled by strong support from the U.S. government amid one of the most “geopolitically tense environments” in recent years, BofA added.

R&D Strengthens Five Dividend-paying Defense Investments

In the United States, defense spending has been rising steadily for the last 15 years, to the benefit of both publicly traded and privately held companies. Innovative digital technologies, including advanced metal manufacturing and robotics, have cut production costs and sped up project completion, according to BofA.

Major investments in research and development (R&D) allow defense companies to vertically integrate to gain increased control of their own supply chains. Rising R&D by defense prime contractors also is fortified by funding from the U.S Department of Defense (DoD).

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Five Dividend-paying Defense Investments Intrigue Economist

Mark Skousen, the head of the Forecasts & Strategies investment newsletter and a leader of the Fast Money Alert trading service that invests in stocks and options, queried SpaceX and Tesla (NASDAQ: TSLA) founder Elon Musk at the annual Baron Investment Conference held in New York on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its Argyros School of Business and Economics, currently is avoiding Tesla due to the stock’s sky-high valuation, even though he has recommended it profitably in the past.

Mark Skousen, a scion of Ben Franklin and head of Fast Money Alert, meets Paul Dykewicz.

Jim Woods, a seasoned investment guru, also is the leader of the Bullseye Stock Trader advisory service that recommends stocks and options. Woods, who concurrently heads the Intelligence Report investment newsletter, is a former Army paratrooper who has strategically invested in defense stocks. Woods recently recommended the stock and options in a big defense stock.

Paul Dykewicz meets with Jim Woods, head of Bullseye Stock Trader.

Skousen and Woods are partners in leading the Fast Money Alert trading service. They combined to produce a short-term gain of nearly 10% with their Oct. 3 recommendation of defense, space and cyber consulting firm Booz Allen Hamilton (NYSE: BAH), of McLean, Virginia. The call options they recommended soared 239.27% in just 28 days before they advised selling.

Leidos Is a Leader Among Five Dividend-paying Defense Investments 

A leader of the defense stocks to assess for investment is Leidos Holdings (NYSE: LDOS), based in Reston, Virginia. Formerly known as Science Applications International Corporation, the company is involved in U.S. defense, aviation, information technology and biomedical research, providing scientific, engineering, systems integration and technical services.

BofA set a price target of $130 on Leidos, with a view that the company should trade in line with the defense prime contractors amid strong U.S. national security demand for innovative technologies and solutions. Other pluses are the company’s solid free cash flow, offset by a lumpy contract award environment, near-term supply chain pressures and mounting concerns about labor inflation.

Risks to reaching the price target are cuts to the U.S. government budget compared to forecasts, increased competition from non-traditional competitors, problems integrating M&A, hiring the right personnel, containing costs, estimating costs and executing on fixed price contracts, as well as retaining reputational risk and future awards.

Outperformance could come from a better-than-anticipated federal budget allocated to innovative technologies and modernization, inexpensive and well integrated M&A activity, unexpected capital return to shareholders in the form of dividends or share buybacks, market share gains, along with better-than-expected margin expansion, BofA wrote.

Chart courtesy of www.stockcharts.com

Dividend-paying Defense Investments Appeal to Portia Capital

Michelle O’Connell, who leads Dallas-based Portia Capital Management, recommends Leidos as a strong mid-cap defense stock that is not covered as prominently as the large-cap stocks in the industry. The company has a large domestic customer base that produces 90% of its revenues.

Leidos serves the DoD, U.S. intelligence agencies, Department of Homeland Security and the Department of Veteran Affairs. With foreign government revenues currently accounting for less than 10% of the company’s total sales, that segment of the business could present “a great opportunity,” Connell counseled.  The United Kingdom, Germany and other NATO allies are looking at improving their military intelligence and cyber security.

Strong consistent cash-flow generation during the last 10 years has reached at least $500 billion, Connell continued. To fuel future growth, Leidos spent more than $700 million on capital expenditures in 2021. The emphasis on cyber warfare enhances the prospects for this investment.

Connell calculated recent contract wins in December 2022 of $102 million for the U.S. Army and $39 million for the U.S. Air Force. She gives the stock an upside potential of 15%.

General Dynamics Is Among Five Dividend-paying Defense Investments

General Dynamics (NYSE: GD), a global aerospace and defense company based in Reston, Virginia, is another recommendation of BofA. It also is a favorite of Jim Woods for his monthly Intelligence Report investment newsletter. The company produces combat vehicles, nuclear-powered submarines and communications systems to provide safety and security.

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

BofA set a price objective of $325 on General Dynamics, noting it faces risks. On the defense side of its business, the risks include possible poor execution on defense programs hurting margins and any U.S. Defense Department budget cutting medium- and long-term growth. General Dynamics rose 21.40% in 2022 but BofA expects further gains in 2023.

Chart courtesy of www.stockcharts.com

Raytheon Rates as One of Five Dividend-paying Defense Investments

Raytheon Technologies Corp. (NYSE: RTX), of Waltham, Massachusetts, is yet one more buy recommendation among defense stocks followed by BofA. The multinational aerospace and defense conglomerate is one of the largest aerospace, intelligence services and defense manufacturing providers in the world, based on revenue and market capitalization.

BofA gave Raytheon a price target of $120, based partly on a blend of U.S. defense and global commercial aerospace growth. Risks to attaining that price objective are a potential downturn in commercial aviation due to the natural business cycle or an exogenous event such as a terrorist attack or a renewed pandemic threat. A severe global economic slowdown would affect top-line growth, since 45% of sales are generated outside the United States.

Execution risk on defense programs could result in cost overruns and margin contractions, BofA added. Orders from international programs further are difficult to time due to the complexity of the process. Lumpiness can occur with international orders. Another blow could come from unexpected cancellations to military or commercial programs.

Outperformance could come from commercial aerospace and business aviation jet recoveries or earnings beating projections, BofA wrote. If margins fare better than forecast, upside potential could top the investment firm’s current valuation of Raytheon. If Raytheon executes on existing programs better than expected and attains share gains in the international market, the reward could be better-than-anticipated upside in the shares, BofA wrote.

Despite the market falling overall in 2022, Raytheon rose 19.33% for the full year and has the potential to climb further in 2023.

Chart courtesy of www.stockcharts.com

Two Funds Find Niches Among Five Dividend-paying Defense Investments

Investors who are looking for a diversified portfolio of defense and aerospace stocks have two exchange-traded funds (ETFs) to choose from: Invesco Aerospace & Defense (PPA) and iShares U.S. Aerospace & Defense (ITA). However, the returns between the ETFs have varied considerably in recent years because they track different indexes and can have very varied holdings, said Bob Carlson, a pension fund chairman who also heads the Retirement Watch investment newsletter.

PPA follows the SPADE Defense Index. Recently, the fund held 56 stocks, and its top holdings were Boeing, Raytheon, Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Dynamics. Its 10 largest positions were 56% of the ETF. The ETF is up 10.03% in the last year, as well as 17.47% for the past three months.

Chart courtesy of www.stockcharts.com

ITA follows the Dow Jones U.S. Select Aerospace & Defense Index. It top holdings recently were Raytheon, Lockheed Martin, Boeing (NYSE: BA), TransDigm (NYSE: TDG) and Northrop Grumman. It held 35 stocks, and the top 10 holdings of the ETF comprised 75% of the portfolio. The ETF also attained an 8.85% return during the past 12 months and a 19.17% jump in the past three months.

Chart courtesy of www.stockcharts.com

China’s COVID Cases Climb Steeply After Relaxing Zero-Tolerance Policy

The number of COVID-19 cases has reached a record high in mainland China, peaking on Dec. 2, according to the European Centre for Disease Prevention and Control (ECDC). In the past three weeks, the number of cases in China has fallen, likely also due to the conducting of a reduced number of tests to detect cases.

The U.S. government will require mandatory negative tests starting Thursday, Jan. 5, for all passengers seeking to enter the country from China, after the latter country reported a spike in COVID-19 cases last month. France and several other countries also mandated clean COVID-19 tests for passengers arriving from China, reflecting global concern that new variants could emerge in the ongoing outbreak.

China has been accused of a lack of transparency since the virus emerged in late 2019. The worry is that China may not be sharing data about any evolving strains that could spark fresh outbreaks in other countries.

Along with the United States, Japan, India, South Korea, Taiwan and Italy have announced passengers from China would need to test negative for COVID. An internal meeting of China’s National Health Commission estimated that up to 248 million people contracted the coronavirus over the first 20 days of December. COVID-19 is roaring through cities in China after its government recently chose to ease its strict anti-virus controls.

China’s leaders reconsidered their zero-tolerance policy for COVID cases that had been in effect the last three years. Large protests in many of China’s cities in November 2022 may have convinced the nation’s leaders to modify the policy of strictly locking down communities where COVID outbreaks occurred.

China’s economy may gain a short-term boost from relaxing its COVID-19-related lockdowns, but a spike in cases and deaths could cause shutdowns to be ordered again by government leaders. Lockdowns cut the supply of goods and prevent many people from working, shopping and obtaining food and water without assistance. A real estate slump also may ensue.

U.S. COVID Cases Exceed 100.8 Million

COVID-19 cases in the United States totaled 100,843,810, while deaths reached 1,093,028, as of Jan. 3, according to Johns Hopkins University. Until recent news that estimated China had 248 million cases of COVID-19, America had the dreaded distinction as the nation with the most coronavirus cases and deaths. Worldwide COVID-19 deaths soared to 6,693,965 people, with total cases of 661,642,654, Johns Hopkins announced on Jan. 3.

The U.S. Centers for Disease Control and Prevention reported that 268,546,218 people, or 80.9% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Jan. 4. People who have completed the primary COVID-19 doses totaled 229,254,623 of the U.S. population, or 69.1%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 45,673,736 people who are age 18 and up, equaling 17.7% as of Jan. 4, 17.3% as of Dec.28, rising from 16.8% the previous week, up from 16.3% the week before than one and and jumping from 15.5% the preceding one.

Ukraine’s President Volodymyr Zelensky’s secret Dec. 21 flight to Washington, D.C., let him to talk face-to-face with U.S. President Joe Biden. Zelensky also addressed a joint session of Congress that evening. His surprise visit marked his first international trip since Russia’s invasion and required Zelensky to travel by train to Poland, where he boarded a U.S. military aircraft to fly to America. Zelensky took the trip to rally support for additional funding for Ukraine’s defense from Russia’s unrelenting aggression.

Russia sent 16 so-called “kamikaze” drones into Ukraine under the cover of darkness early Friday morning, Dec. 30, a day after firing dozens of missiles at civilian targets, power plants and other critical infrastructure. The attacks left roughly 10 million people there in darkness without heat or electricity amid frigid winter weather.

At least 76 missiles also were launched by Russia at major Ukrainian cities, including Kyiv, Odesa, Poltava, Zhytomyr, Kharkiv and Sumy, on Friday, Dec. 16, according to the Ukrainian Air Force. Russia is continuing its onslaught of intensified strikes that began in October, targeting Ukraine’s energy and civilian infrastructure.

The five dividend-paying defense investments fueled by Russia’s war against Ukraine include companies supplying the United States and its allies with military equipment that is proving effective in countering Russia’s persistent attacks. Russia leaders, showing no sign of withdrawing to its pre-2014 borders with Ukraine, seems intent on waging a long-term war that should continue to lift the five dividend-paying defense investments that seek to safeguard freedom.

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

Dividend-paying defense stocks are rising amid the race for space as the United States seeks to retain a competitive advantage versus authoritarian governments such as Russia and China.

The dividend-paying defense stocks provide military equipment and surveillance that the United States can give to Ukraine as the latter country seeks to defend itself against a continuing invasion from Russian forces that began on Feb. 24. The same capabilities could be offered to Asia-Pacific countries that recently have been threatened by provocative statements and military overflights from China.

The market has rewarded dividend-paying defense stocks in 2022, as Russian’s ongoing attacks and occupation of Ukrainian territory show no signs of abating. Despite Russia violating international law by its invasion of Ukraine’s territory, the aggressor is continuing to meet stiff resistance, even as it leaves millions of civilians with no power, internet or water.

The vast majority have missiles, shells and drones have been shot down by Ukrainian forces, whether they are coming from Russia’s ships on the Black Sea or the positions it holds in the Crimea region of Ukraine. Multiple regions of Ukraine, including its capital, faced a massive Russian missile attack Thursday, Dec. 29, the biggest wave of strikes in weeks.

Dividend-paying Defense Stocks Rise in Race for Space

Russia’s strikes on power and water supplies appear intended to inflict increased suffering on the Ukrainian population. Those attacks have occurred almost weekly since October while Ukraine’s ground forces struggle to hold ground and advance.

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Entrepreneurs Like Elon Musk Affect Dividend-paying Defense Stocks

The decision that Russia’s leaders announced on July 26 to leave the International Space Station (ISS) program after 2024 proved them to be unreliable partners as launch providers, creating an opening for Western companies. The U.S. commercial space industry is gaining momentum as a major provider not only of defense and launch capabilities, but in-orbit satellite services.

The invasion of Ukraine injected urgency into the space race, with Russia’s leaders subsequently opting to deny the United States access to Soviet-era Soyuz launchers. American launch service providers such as SpaceX, Blue Origin and Space Launch System (SLS) are seeking to take the business that Russia’s President Vladimir Putin chose to abandon.

Skousen Seeks Dividend-paying Defense Stocks

Mark Skousen, the head of the Forecasts & Strategies investment newsletter and a leader of the Fast Money Alert trading service that invests in both stocks and options, questioned SpaceX and Tesla (NASDAQ: TSLA) founder Elon Musk at the annual Baron Investment Conference held in New York on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its Argyros School of Business and Economics, cautions to steer clear of Tesla due to the stock’s sky-high valuation, even though he has recommended it profitably in previous years. Tesla fell a shocking 66.34% in 2022.


Mark Skousen, a scion of Ben Franklin and head of Fast Money Alert, meets Paul Dykewicz.

When Skousen asked Musk about why investors should invest in non-dividend-paying Tesla at its much higher price-to-earnings (P/E) valuation rather than dividend-paying EV competitors, the entrepreneur told attendees at the Baron Funds Investment Conference in New York that he understood that point. Musk said has told the investing public in the past that Tesla shares were too high, “and they ignore me and buy the stock anyway.” SpaceX is not a public company yet, but its prowess as a launch and broadband satellites services provider could position it to go public in the future.


Paul Dykewicz meets with CEO Ron Baron at the end of the Baron Funds conference.

Jim Woods, a seasoned investment guru, also is the leader of the Bullseye Stock Trader advisory service that recommends stocks and options. Woods, who concurrently heads the Intelligence Report investment newsletter, is a former Army paratrooper who has strategically invested in defense stocks that are involved in the space industry. He recently recommended the stock and options in two traditional defense companies that also serve the space sector.


Paul Dykewicz meets with Jim Woods, head of Bullseye Stock Trader.

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

Skousen and Woods team up on the Fast Money Alert trading service, and they combined to produce a short-term gain of nearly 10% with their Oct. 3 recommendation of defense, space and cyber consulting firm Booz Allen Hamilton (NYSE: BAH), of McLean, Virginia. The call options they recommended zoomed 239.27% in just 28 days before they advised selling.

General Dynamics Is Among Dividend-paying Defense Stocks Rising in Race for Space

General Dynamics (NYSE: GD), a global aerospace and defense company based in Reston, Virginia, is a recommendation of BofA and stock picker Jim Woods in his monthly Intelligence Report investment newsletter. The company produces combat vehicles, nuclear-powered submarines and communications systems to provide safety and security.

The company’s defense program exposure to land and sea priorities, coupled with its Gulfstream business jet manufacturing segment, could spur near-term and medium-term organic growth. It also has a strong balance sheet and solid cash generation, aiding dividend growth and share repurchases, BofA added.

BofA set a price objective of $325 on General Dynamics, noting it faces risks. On the defense side of its business, the risks include possible poor execution on defense programs hurting margins and any U.S. Defense Department budget cutting medium- and long-term growth. General Dynamics rose 21.40% in 2022.

Chart courtesy of www.stockcharts.com

Raytheon Ranks With Top Dividend-paying Defense Stocks

Raytheon Technologies Corp. (NYSE: RTX), of Waltham, Massachusetts, is another buy recommendation of BofA. The multinational aerospace and defense conglomerate is one of the largest aerospace, intelligence services and defense manufacturing providers in the world, based on revenue and market capitalization.  

BofA gave Raytheon a price target of $120, based partly on a blend of U.S. defense and global commercial aerospace growth. Risks to attaining that price objective are a potential downturn in commercial aviation due to the natural business cycle or an exogenous event such as a terrorist attack or a renewed pandemic threat. A severe global economic slowdown would affect top-line growth, since 45% of sales are generated outside the United States.

Execution risk on defense programs could result in cost overruns and margin contractions, BofA added. Orders from international programs are difficult to time due to the complexity of the process. Thus, lumpiness could occur with international orders. Another blow could come from unexpected cancellations to military or commercial programs.

Outperformance could come from commercial aerospace and business aviation jet recoveries or earnings beating projections, BofA wrote. If margins fare better than forecast, there could be upside potential to the investment firm’s valuation of Raytheon. If the company executes on existing programs better than expected, gains share in the international market or makes a materially accretive acquisition, there could be greater-than-anticipated upside in the shares, BofA wrote.

Despite the market falling overall in 2022, Raytheon rose 19.33% for the full year.

Chart courtesy of www.stockcharts.com

Northrop Grumman is Another of the Dividend-paying Defense Stocks

Northrop Grumman, a multinational aerospace and defense technology company headquartered in Falls Church, Virginia, teamed up with NASA in July to conduct a full-scale static fire of NASA’s Space Launch System (SLS) rocket motor, known as Flight Support Booster-2. The five-segment solid rocket booster is designed to have the world’s largest solid rocket motor to provide more than 75% of the SLS rocket’s initial thrust during launch.

In the test flight, more than 300 measurement channels assessed the 154-foot-long solid rocket booster as it fired for slightly more than two minutes to produce upwards of 3.6 million pounds of thrust. The test evaluated new materials and demonstrated an ignition system and an electronic thrust vector control system to steer the motors to provide data for the development of the next-generation Booster Obsolescence and Life Extension (BOLE).

Northrop Grumman won a contract to develop the BOLE booster in December 2021. The award included follow-on production and flight sets for Artemis IV through Artemis VIII, and a BOLE booster set for Artemis IX.

Michelle O’Connell, who leads Dallas-based Portia Capital Management, recommends Northrop Grumman. The company’s involvement in the growing space launch program only enhances its appeal, she told me. The market likes Raytheon, as well, as the stock rocketed 42.71% in 2022.


Michelle Connell leads Dallas-based Portia Capital Management.

Continuous product improvements and obsolescence mitigation help NASA achieve its long-term mission to use SLS for its Artemis program, said Wendy Williams, vice president, propulsion systems, Northrop Grumman. The test offers a chance for early learning on next-generation systems, she added.


Chart courtesy of www.stockcharts.com

Reinvestments in R&D Strengthen Dividend-paying Defense Stocks

In 2021, the total space economy reached an estimated $469 billion, up 62.8% in 10 years from 2011 estimates of $288 billion, according to BofA Global Research. Approximately 79% of that total market value is attributed to commercial space products and services, the investment firm added.

Global government spending on space was estimated at $87.35 billion in the same time period, accounting for a sizeable 20% share of the market, according to Statista. In the United States, defense spending has been rising steadily for the last 15 years to the benefit of both publicly traded and privately held companies. However, the current free-market dynamics just became a feature of the space industry in recent years.

The emergence of digital technologies, such as advanced metal manufacturing and robotics, have cut production costs and sped up project completion, according to BofA. Furthermore, large investments in research and development (R&D) have allowed space companies to vertically integrate to try to gain increased control of their own supply chains, as opposed to minimal investments of 2-5% in research and development (R&D) annually by some defense prime contractors. Instead of spending their own earnings on R&D, large defense prime contractors often wait for DoD contracts to fund their projects.

“This sluggishness in development stands in stark contrast to the agility of space companies like Virgin Galactic and SpaceX,” BofA wrote in a recent research note. “For example, SpaceX produces 70% of Falcon launch vehicle components in its California production facility.”

Reports Show China’s COVID Cases Climb Sharply After Relaxing Zero-Tolerance Policy

The U.S. government will require mandatory negative tests starting Jan. 5 for all passengers seeking to enter the country from China, after the latter country reported a spike in COVID-19 cases. France and several other countries also mandated clean COVID-19 tests for passengers arriving from China, reflecting global concern that new variants could emerge in the ongoing outbreak.

There have been no confirmed reports of new variants to date, but China has been accused of a lack of transparency since the virus first surfaced in the country in late 2019. The worry is that China may not be sharing data about any evolving strains that could spark fresh outbreaks in other countries.

Along with the United States, Japan, India, South Korea, Taiwan and Italy have announced passengers from China would need to test negative for COVID. An internal meeting of China’s National Health Commission estimated that up to 248 million people contracted the coronavirus over the first 20 days of December, according to media reports. COVID-19 is slamming cities in China after its government recently chose to ease its strict anti-virus controls.

China’s leaders recently reconsidered their Zero-tolerance policy for COVID cases that had been in effect the last three years. Large protests in many of China’s cities last month may have convinced the nation’s leaders to modify the policy of strictly locking down communities where COVID outbreaks occurred.

China’s economy may gain a short-term boost from relaxing its COVID-19-related lockdowns, but a spike in cases and deaths could cause shutdowns to be ordered again by government leaders. Lockdowns cut the supply of goods and prevent many people from working, shopping and obtaining food and water without assistance. A real estate slump also could ensue.

U.S. COVID Cases Exceed 100.7 Million

COVID-19 cases in the United States totaled 100,771,854, up more than 30,000 in two days, and deaths reached 1,092,650, as of Dec. 30, according to Johns Hopkins University. Until last week’s news that estimated China had 248 million cases of COVID-19, America had the dreaded distinction of incurring the most coronavirus cases and deaths of any nation. Worldwide COVID-19 deaths soared to 6,689,274 people, up more than 6,500 in the past two days, while total cases hit 660,109,069, Johns Hopkins announced on Dec. 30.

The U.S. Centers for Disease Control and Prevention reported that 268,363,272 people, or 80.8% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Dec. 28. People who have completed the primary COVID-19 doses totaled 229,135,170 of the U.S. population, or 69%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 44,711,483 people who are age 18 and up, equaling 17.3% as of Dec. 30, rising from 16.8% last week, up from 16.3% the prior week and jumping from 15.5% the week before that one.

Ukraine’s President Volodymyr Zelensky’s secret Dec. 21 flight to Washington, D.C., let him meet with U.S. President Joe Biden. Zelensky then addressed a joint session of Congress that evening.  Zelensky’s surprise visit marked his first international trip since Russia’s invasion. The trip required Zelensky to travel by train to Poland, where he boarded a U.S. military aircraft to fly to America. He took the trip to rally support for additional funding for Ukraine’s defense from Russia’s unrelenting aggression.

Russia launched 16 so-called “kamikaze” drones into Ukraine under the cover of darkness early Friday morning, Dec. 30, a day after firing dozens of missiles at civilian targets, power plants and other critical infrastructure. They mark the latest attacks against Ukraine that have left roughly 10 million people there in darkness without heat or electricity amid frigid winter weather.

At least 76 missiles also were launched by Russia at major Ukrainian cities, including Kyiv, Odesa, Poltava, Zhytomyr, Kharkiv and Sumy, on Friday, Dec. 16, according to the Ukrainian Air Force. Russia is continuing its onslaught of intensified strikes that began in October, targeting Ukraine’s energy and civilian infrastructure.

Russia’s decision to sever its collaboration in space with the United States and other Western nations that have backed economic sanctions against the aggressor in its sustained attack on Ukraine have increased interest among U.S. defense stocks focused on space to pursue a heightened share of the U.S. government’s growing number of space exploration missions. The dividend-paying defense stocks serving the space sector are becoming key contractors in America’s renewed race for superiority in space.

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

Two dividend-paying launch vehicle stocks could become gifts to investors seeking to give their portfolios lifts.

The two dividend-paying launch vehicle stocks offer an array of products that provide diversification to companies that are benefiting from increased demand due to Russia’s Feb. 24 invasion and continuing attacks against neighboring Ukraine. The same two dividend-paying launch vehicle stocks are aerospace and defense companies that have the potential to soar as Russia stops collaborating with the U.S. government to transport astronauts to the International Space Station (ISS) and deliver supplies.

Indeed, launch vehicle companies are positioned to profit as the U.S. government renews its commitment as a global leader in space, after scaling back its spending since the 1980s, when it conducted all its own launches under federal supervision. Aside from the end of the U.S. government’s monopoly on launches for the National Aeronautics and Space Administration (NASA) and other federal agencies, the war Russia started with Ukraine in February has been a “growth catalyst” for Western space companies, wrote BofA Global Research.

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Two Dividend-paying Launch Vehicle Stocks Are Part of New U.S. Moon Mission

The decision that Russia’s leaders announced on July 26 to leave the International Space Station (ISS) program after 2024 showed them as unreliable partners as launch providers, creating a wide opening for Western companies to fill the deep void. As a result, the U.S. commercial space industry is gaining momentum as a major provider not only of launch capabilities but in-orbit satellite services.

The invasion of Ukraine injected urgency into the space race, with Russia’s leaders subsequently blocking the United States and its allies from using Soviet-era Soyuz rockets as launchers. American launch service providers such as SpaceX, Blue Origin and Space Launch System (SLS) are answering the call to scoop up the business that Russia’s President Vladimir Putin chose to abandon. None of the U.S.-based launch service providers are pure play, publicly traded stocks, but two of them are traditional, broad-based defense companies.

Two Dividend-paying Launch Vehicle Stocks Help Fuel Space Race

Mark Skousen, the head of the Forecasts & Strategies investment newsletter and a leader of the Fast Money Alert trading service that invests in both stocks and options, questioned SpaceX and Tesla (NASDAQ: TSLA) founder Elon Musk at the annual Baron Investment Conference held this year on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its Argyros School of Business and Economics, now is steering clear of Tesla due to the stock’s sky-high valuation, even though he has recommended it profitably in previous years.

Mark Skousen, a scion of Ben Franklin and head of Fast Money Alert, meets Paul Dykewicz.

When Skousen asked Musk about why investors should invest in non-dividend-paying Tesla at its much higher price-to-earnings (P/E) valuation rather than dividend-paying EV competitors, the entrepreneur told attendees at the Baron Funds Investment Conference in New York that he would not argue that point. Instead, Musk said has told the investing public in the past that Tesla shares were too high, “and they ignore me and buy the stock anyway.” SpaceX is not a public company yet, but its prowess as a launch and broadband satellites services provider could position it to go public in the future.

Paul Dykewicz meets with CEO Ron Baron at the end of the Baron Funds conference.

Two Dividend-paying Launch Vehicle Stocks Include Lockheed Martin

Blue Origin, of Kent, Washington, is a privately owned launcher funded by billionaire Jeffrey Bezos, the founder and executive chairman of Seattle-based Amazon (NASDAQ: AMZN). In contrast, Space Launch System is backed by three major U.S. aerospace companies, Bethesda, Md.-based Lockheed Martin (NYSE: LMT), West Falls Church, Va.-based Northrop Grumman (NYSE: NOC) and Chicago-based Boeing Co. (NYSE: BA). All three are publicly held but none of the public companies are pure plays on the economically cyclical launch business.

Lockheed Martin is a current recommendation of Jim Woods, a seasoned investment guru, in his Bullseye Stock Trader advisory service that recommends stocks and options. Woods, who also leads the Intelligence Report investment newsletter, is a former Army paratrooper who has strategically invested in defense stocks that are involved in the space industry.

Paul Dykewicz meets with Jim Woods, head of Bullseye Stock Trader.

NASA’s Artemis I mission, with the Lockheed-Martin-built Orion spacecraft, launched to the Moon on Nov. 16 with a mission to lead the world into a new era of human deep space exploration. The test flight marked the first of what is slated to be a series of missions under NASA’s Artemis program, which is expected to result in the first woman and first person of color landing on the Moon.

Orion lifted off aboard NASA’s Space Launch System rocket at 1:47 a.m. ET on Nov. 16, and two hours later, the spacecraft separated from the booster’s upper stage traveling at 22,600 mph. That speed enabled the Orion Spacecraft to break away from the gravity of the Earth and travel to the Moon.

“We’re witnessing history as Artemis I brings us one significant step closer to making NASA’s vision for human deep space exploration a reality,” according to a statement by Robert Lightfoot, executive vice president of Lockheed Martin Space. “Through a nationwide industry team that has also leveraged an international industrial base, this launch and mission unite the skills of a dedicated workforce and innovative technologies to make a global impact.”

Chart courtesy of www.stockcharts.com

Two Dividend-paying Launch Vehicle Stocks to Purchase Feature Northrop Grumman

Northrop Grumman, a multinational aerospace and defense technology company, teamed up with NASA in July to conduct a successful full-scale static fire of NASA’s Space Launch System (SLS) rocket motor, known as Flight Support Booster-2. The five-segment solid rocket booster is slated to have the world’s largest solid rocket motor to provide more than 75% of the SLS rocket’s initial thrust during launch.

In the test flight, more than 300 measurement channels assessed the 154-foot-long solid rocket booster as it fired for slightly more than two minutes to produce upwards of 3.6 million pounds of thrust. The test evaluated new materials and demonstrated an ignition system and an electronic thrust vector control system to steer the motors to provide data for the development of the next-generation Booster Obsolescence and Life Extension (BOLE).

Northrop Grumman won a contract to develop the BOLE booster in December 2021. The award included follow-on production and flight sets for Artemis IV through Artemis VIII, and a BOLE booster set for Artemis IX.

Michelle Connell, who leads Dallas-based Portia Capital Management, recommends Northrop Grumman. The company’s involvement in the growing space launch program boosts its appeal.

Michelle Connell leads Dallas-based Portia Capital Management.

Continual product improvements and obsolescence mitigation helps NASA achieve its long-term mission to use SLS for its Artemis program, said Wendy Williams, vice president, propulsion systems, Northrop Grumman. This test offers a chance for early learning on next-generation systems, she added.

Chart courtesy of www.stockcharts.com

Two Dividend-paying Launch Vehicle Stocks Unhurt by Musk’s Purchase of Twitter 

With Musk periodically selling big chunks of Tesla stock, at least partly to fund his purchase and ad-depleted operation of risk-filled Twitter Inc., the electric vehicle manufacturer’s shares may drop even further before they start to climb again. Skousen is among those who have expressed concern Musk may be overextended by trying to turn around financially struggling and politically charged Twitter while also leading Tesla and SpaceX.

Russia’s decision to leave the ISS can be seen as another example of the accelerated decoupling of Russo-American space relations, which could serve as a catalyst for Western-based space companies to fill the breach left by Roscosmos, BofA wrote in a recent research note. Demand for launch services should not soften during the next decade, but rather create a “vast window of opportunity” for U.S.-based manufacturers and operators, the investment firm added.

In March 2022, Elon Musk’s SpaceX delivered a shipment of Starlink satellite kits to Ukraine in the wake of the Russian assault on its neighboring nation. Musk’s generosity further solidified the growing significance of space companies in today’s society and geopolitics. Private space companies and their supporters are gradually becoming strong political forces, BofA wrote.

The best way for individual investors to obtain a stake in non-dividend-paying SpaceX could be to buy shares of Baron Focused Growth Fund (BFGIX), which has put 10.7% of its holdings in the Musk-led venture. A downside is that Tesla is the fund’s largest position, with 14.9%, as of Nov. 30, but that stock has been dropping in recent months.

Chart courtesy of www.stockcharts.com

Two Dividend-paying Launch Vehicle Stocks Seek Government Contracts

Amid the Cold War, the global space industry resembled a state-sponsored duopoly. The United States and Soviet Union directed most of the global spending toward space-related products and services, but several other nations also began developing their own space programs by the 1970s, BofA noted.

In addition, additional countries explored space aboard either Soviet Soyuz capsules or American Space Shuttle missions, BofA wrote. The international programs were “not symbolic,” but a testament to the growing space programs of both developed and developing nations, the investment firm added.

More than 50% of global government space expenditures currently comes from the United States, with global tension and countries such as China, Russia and others seeking to “militarize the cosmos” and increase their budgets for space, BofA wrote.

Could Two Dividend-paying Launch Vehicle Stocks Rocket? 

Even though NASA traditionally owned and operated its own spacecraft, a watershed moment that ended the practice occurred with the Space Shuttle shutdown in 2011 that caused the United States to rely on third-party contractors to travel to space. That led the United States to turn to the Soyuz spacecraft of the Russian State Corporation for Space Activities, known as Roscosmos, to transport astronauts to the International Space Station. The following information, adjusted for inflation, is eye-opening about the disparity in pricing between U.S. and Russian government launch costs.

“The decision to pay Roscosmos to ferry Americans to and from the ISS shocked many, a step away from Cold War rivalries and toward collaboration,” BofA wrote. “Initial prices were relatively cheap, costing NASA $27.1 million per seat in 2006 compared to $170 million per seat cost to operate the Space Shuttle.”

Two Dividend-paying Launch Vehicle Stocks Ready for Countdown to Seize Missions Russia Now Shuns

Until the start of the Russo-Ukrainian war, the Russian space agency was NASA’s 17th largest contractor, with 15 contracts totaling $185 billion. In retaliation to the sanctions imposed by the United States on Russia for the latter country invading Ukraine and attacking civilians and power infrastructure, the collaboration largely has ceased. In fact, Roscosmos denied itself a reliable customer by stopping delivery and maintenance of RD-180 Russian-made boosters to NASA.

Russia’s war not only has devastated Ukraine but led to an estimated 100,000 deaths on each side, according to America’s highest-ranking military officer and Chairman of the Joint Chiefs of Staff Gen. Mark Milley. In addition to the immense human toll, Russia has incurred stiff economic sanctions aimed at swaying its leaders to stop their violence and retreat to their country’s own borders. However, Russia’s President Vladimir Putin defiantly has refused to negotiate a peace agreement and instead escalated the conflict by holding what were described by Western leaders as “sham referendums” aimed at seizing Ukrainian territory in the Crimea region against international law.

Putin, who described the invasion of Ukraine that he ordered as a “special military operation,” has unified the vast majority of countries in the United Nations against the war and Russia’s aggression. His bombing of Ukrainian power stations and countless civilian targets have further shown his cruelty, while continuing his attacks that sacrifice lives with no apparent gain in sight.

Russia More than Triples Charges to NASA to $90 million-plus per seat

“After the Space Shuttle’s discontinuation, Roscosmos began raising the price for American passage to the ISS, likely the result of NASA having no other viable option at the time,” BofA opined. “After a 2015 contract modification, NASA had to pay Roscosmos approximately $81.9 million per seat in 2018, a 384% increase over a single decade. Had a commercial option been secured by 2015 as initially expected by NASA, the agency could have saved over $1 billion in payments through 2018 to the Russian space administration.”

The most recent seat purchase came in May 2020, when NASA agreed to pay Roscosmos $90.3 million to send an American astronaut to the ISS. NASA obtained an additional seat on a Soyuz launch in April 2021 by swapping a seat on a future U.S. commercial spacecraft slated to launch in 2023 as part of a space station crew rotation mission. After the SpaceX Crew Dragon’s first flight to the ISS in May 2020, NASA expressed hope that paying for Soyuz flights will become unnecessary.

With such extreme price increases, it was just a matter of time before market forces would position private businesses to replace Russia as launch services provider for the U.S. government.

China’s COVID Cases Reportedly Surge After Easing Its Zero Tolerance Policy

Minutes from an internal meeting of China’s National Health Commission estimated that up to 248 million people contracted the coronavirus over the first 20 days of December, according to news reports. COVID-19 is tearing through cities in the world’s most populous nation, following its government’s newly relaxed anti-virus controls.

Frequently criticized for perceived underreporting of cases and deaths, China’s leaders recently announced they would lift restrictions aimed at keeping the virus contained for the past three years. Large protests in many of China’s cities last month apparently swayed the nation’s leaders to modify the policy of strictly locking down communities where COVID outbreaks occurred.

China’s economy may gain a short-term boost from relaxing its COVID-19-related lockdowns, but a spike in cases and deaths in that country could cause shutdowns to resume. Lockdowns cut the supply of goods and prevent many people from working, shopping and obtaining additional food. A real estate slump also could ensue in the world’s second-biggest economy.

U.S. COVID Cases Top 100 Million

COVID-19 cases in the United States totaled 100,067,254 and deaths reached 1,090,150, as of Dec. 23, according to Johns Hopkins University. Until this week’s report the China had 248 million cases of COVID-19, America had the dire distinction of incurring the most coronavirus cases and deaths of any country. Worldwide COVID-19 deaths hit 6,677,254 people, up more than 7,000 since Dec. 21, while total cases reached 656,579,760, Johns Hopkins reported on Dec. 23.

The U.S. Centers for Disease Control and Prevention reported that 268,143,349 people, or 80.8% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Dec. 21. People who have completed the primary COVID-19 doses totaled 228,989,746 of the U.S. population, or 69%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 43,385,791 people who are age 18 and up, equaling 16.8%, up from 16.3% last week, 15.5% the previous week and 14.7% the week before that one.

As for the war in Ukraine, its President Volodymyr Zelensky flew secretly to Washington, D.C., to meet U.S. President Joe Biden on Wednesday morning, Dec. 21, before addressing a joint session of Congress that evening.  Zelensky’s surprise visit marked his first international trip since Russia invasion. The trip required Zelensky to take a train to Poland, where he boarded a U.S. military aircraft to fly across the Atlantic Ocean. The trip was intended to rally support for further funding to help Ukraine defend itself against Russia’s unrelenting aggression.
Russia launched at least 76 missiles at different parts of Ukraine, including Kyiv, Odesa, Poltava, Zhytomyr, Kharkiv and Sumy, on Friday, Dec. 16, according to the Ukrainian Air Force. Russia is continuing its barrage of strikes that began in October that have damaged Ukraine’s energy and civilian infrastructure, causing power outages during brutally cold conditions.

Russia’s decision to end is collaboration in space with the United States and other Western nations who have supported economic sanctions against the aggressor in its continuing attack of Ukraine have increased interest among U.S. launch service providers to seize a heightened share of the U.S. government’s growing number of space exploration missions. The two dividend-paying launch vehicle stocks are becoming key contractors in America’s resurgent space program.

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

 

Three dividend-paying resort stocks to purchase seem safe from Russia’s war in the Ukraine and fallout from the Fed’s 0.50% rate hike on Dec. 14 that was the smallest in the past seven months.

The three dividend-paying resort stocks to purchase are well diversified in other regions of the world that are have been recovering from the economic ills of the COVID-19 pandemic that had been easing in recent months. As restrictions and supply chain problems on consumers and businesses have waned, along with new cases and deaths, travel and leisure have been rebounding, especially among those whose financial resources are robust. However, the risk of a new and widespread outbreak in China is mounting, according to public health officials there.

A glance at third-quarter earnings by BofA Global Research analysts shows that 11 of 16 lodging companies, including resorts, met or beat expectations, with the group’s earnings before interest, taxes, depreciation and amortization (EBITDA) coming in about 4% ahead, despite revenues up just 1%. Resorts are revealing margin recovery, despite slowing compared to prior quarters, as demand is strong to stable with no cracks, while overall revenue per available room (RevPAR) trends seem to be flattening, BofA reported.

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Three Dividend-paying Resort Stocks to Purchase Include Host Hotels & Resorts

Penson fund Chairman Bob Carlson called the world’s largest lodging real estate investment trust (REIT), Bethesda, Maryland-based Host Hotels & Resorts Inc. (NASDAQ: HST), a good but speculative investment. The company recently opted to focus on North American travel by selling most of its European and Asian businesses, he said.

HST, with a current dividend yield of 2.8%, focuses on luxury and up-scale hotels and resorts, said Carlson, who also heads the Retirement Watch investment newsletter. Some industry analysts believe this strategy makes the company more resistant to recessions, but its marginal upper-income customers may reduce leisure travel to HST’s resorts during a recession, Carlson continued.

“The shares sell at a good value, though the company beat expectations recently,” Carlson counseled. “HST should be considered a leveraged play on travel. It is likely to do better than the average lodging company if travel continues to increase but will decline more than average in a recession.

Bob Carlson, head of the Retirement Watch investment newsletter, talks to Paul Dykewicz.

Seasoned Trader Earned Profit from One of Three Dividend-paying Resort Stocks to Purchase

Bryan Perry, a seasoned Wall Street trader and leader of the Premium Income Pro advisory service, recommended both the shares and call options of Host Hotels & Resorts. Perry turned a profit of more than 10% in roughly 10 months with those trades, despite the major indexes falling at the same time.

The U.S. government’s release of the Consumer Price Index (CPI) for November showed a smaller-than-forecast 0.1% increase, compared to consensus estimates of 0.3%. The initial reaction by the market was a 700-point move to the upside for the Dow in the opening half-hour on Dec. 13, followed by fading price action in the middle of the day, commented Perry, who also leads the high-yield-focused Cash Machine investment newsletter.

“While the headline was seen as quite bullish, the composition of the report showed that inflation is still pretty elevated in a number of areas,” Perry wrote to his Premium Income Pro subscribers. “But the key takeaway from the report at first glance is that overall inflation is starting to cool. So, the Fed should be convinced to temper the pace of its interest rate hikes and perhaps place a lower ceiling on its terminal rate.”

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

Host Hotels & Resorts announced a big acquisition on Nov. 2, when it bought the Four Seasons Resort and Residences Jackson Hole, a 125-room luxury resort in Jackson Hole, Wyoming, for approximately $315 million in cash. The purchase price represents a 13.6x EBITDA multiple, or a cap rate of approximately 6.6%, on the Resort’s 2022 estimated results.

The resort is expected to be one of Host’s top three assets, based on estimated full year 2022 results, further improving the quality of the company’s portfolio.

Three Dividend-paying Resort Stocks to Purchase Feature Unique Ski in/Ski out Resort

The Four Seasons Resort in Jackson Hole is one of only a handful of luxury ski in and ski out resorts in the United States. The resort sits on 6.3 acres in Teton Village, just steps from the gondola at the base of the Jackson Hole Mountain Resort, which is regarded as one of the top-rated U.S. ski destinations. Near downtown Jackson and in close proximity to Grand Teton and Yellowstone National Parks, the resort is a year-round destination where future supply is expected to be severely restricted.

Opened in 2003, the resort underwent a major guestroom renovation in 2022. No disruptive capital expenditures are expected in the near term, the company announced. In addition, the Jackson Hole Airport is undergoing a $65 million renovation and expansion, scheduled for completion by year-end, to better accommodate year-round demand, shrinking shoulder seasons and increasing visitor growth.

For people with extra the money to spend, the resort has 125 oversized rooms and suites that average approximately 650 square feet with gas fireplaces, balconies and dramatic views of the surrounding mountains and valleys. The resort includes a five-bedroom, 4,700 square foot penthouse, and offers nearly 9,000 square feet of indoor meeting space, three upscale food and beverage outlets with a pool café, two retail outlets and a 16-treatment room alpine spa.

The resort further offers an on-site ski concierge, a private ski club, a kids club and a fitness center. It also features an additional 44 private residences, which are not owned by Host, ranging in size from 1,700 to 3,700 square feet. Of the 44 residences, 30 currently participate in a rental program through the resort.

Host’s President and Chief Executive Officer James F. Risoleo said the Four Seasons Resort and Residences Jackson Hole is an “iconic, irreplaceable asset” in a new market for the company. From 2014 through 2019, the resort achieved a revenue per available room compound annual growth rate (CAGR) of 5.8%, significantly outperforming a RevPAR CAGR of 4.3% for its “ultra-luxury” peers during the same time.

With year-round demand generators, no new supply on the horizon and a recent comprehensive guestroom renovation, Host management stated the resort is well positioned to continue outperforming its peers for the long term. Such results would drive value for company shareholders, Host’s management added.

Three Dividend-paying Resort Stocks to Purchase Vie for Best-in-Class EBITDA Growth

Host management has a goal of producing best-in-class EBITDA growth to drive long-term, risk-adjusted returns for its stockholders. The company’s aim is to create long-term stockholder value by acquiring, selling, renovating and developing luxury and upper upscale hotels, primarily in the United States. The company currently has 78 hotels, 42,200 rooms and holds non-controlling interests in one international and seven domestic joint ventures.

The company’s management expressed the view that the resort’s 2022 performance is muted due to the guest room renovation during the first half of the year, as well as Jackson Hole Airport’s closure for approximately three months during the year. By growing year-round occupancy to historical levels and repositioning the food and beverage outlets and public spaces, the company expects the resort to stabilize at approximately 11-13x EBITDA in the 2026-2028 timeframe.

Three Dividend-paying Resort Stocks to Purchase Cater to Luxury Consumers

BofA gave Host a $18 price objective, based on approximately 9x the investment firm’s 2023 estimated adjusted EBITDA, consistent with the group’s multiple range and history. BofA opined the multiple is warranted given Host’s asset quality, “best-in-class management team” and significant equity market liquidity, which helps differentiate the company from its peers.

However, Host has “meaningful” Top 25 U.S. market exposure, particularly in urban cores that are underperforming due to the pandemic, BofA added.

Chart courtesy of www.stockcharts.com

Potential outperformance of BofA’s price target by HST could be spurred by better-than-expected RevPAR growth and higher-than-forecast earnings gains from a rise in mergers and acquisitions (M&A) activity. Risks that could cause Host to miss the price objective are a weakening in the overall economic environment, leading to lower levels of business travel and depressed leisure spending, higher-than-expected room supply growth and unforeseen circumstances, such as war or acts of terrorism.

Vail Ranks Among Three Dividend-paying Resort Stocks to Purchase

Vail Resorts (NYSE: MTN), of Broomfield, Colorado, is another BofA recommendation, as well as a holding of New York-based Baron Funds. Vail’s focus includes using data to drive a unique, advanced customer commitment for a recurring business model. MTN is also well positioned to benefit from high-end, pent-up leisure demand in the coming ski season.

Baron Growth Fund (BGRFX) is a prominent shareholder of Vail Resorts. Michelle Connell, the chief executive officer of Portia Capital Management, of Dallas, Texas, is another fan of Vail.

Michelle Connell leads Dallas-based Portia Capital Management.

Key reasons Connell provided for investing in MTN include:

  • Strong growing revenues in a softening economy. Despite MTN increasing ticket prices 7.5%, the company’s revenue from ski passes was already up 7% for the year through the end of September 2022.
  • $320 Million Invested for Improved Consumer Experience. Just in time for the 2022-23 ski season, MTN invested $320 million to install 19 new chairlifts across 14 of its resorts.
  • Investment in Data Infrastructure. MTN has also invested heavily so that the online experience of its consumers is smoother and faster.
  • MTN should appeal to the environmentally conscious young investor who also skis. The company is ahead of schedule to meet its target of 2030 to have a zero net (carbon) operating footprint.
  • Estimated 12-month upside for MTN:15-25%.

Chart courtesy of www.StockCharts.com

Wyndham Wraps up List of Three Dividend-paying Resort Stocks to Purchase

Wyndham Hotels & Resorts, Inc. (NYSE: WH), of Parsippany, New Jersey, netted a $85 price objective and a buy recommendation from BoA. The valuation is based on roughly 15x of BofA’s 2023 estimated EBITDA, a discount to trading peers such as Hilton Worldwide (NYSE: HLT), of McLean, Virginia, Bethesda, Maryland-based Marriott International (NASDAQ: MAR) and Rockville, Maryland-based Choice Hotels International (NYSE: CHH). The value also is in-line with the long-term average of asset-light lodging C-corps, BofA added.

BofA opined that Wyndham’s multiple is warranted due to WH’s competitive advantage in scale and stability in earnings from its pure franchised business. The market is discounting WH to factor in an historically significant number of deletions every year, offset by a business that’s almost based solely on fees. The price objective is also in-line with a midcycle multiple on recovery earnings discounted back to 2022 estimates.

Outperformance above BofA’s price target for WH could occur due to an accelerating RevPAR environment, aided by better macroeconomic data, greater-than-expected margin expansion and net-unit-growth ahead of expectations. Risks to BofA’s price objective are greater-than-expected economic weakness, bigger-than-forecast dips in travel demand, deepened delays in hotel development that may slow system growth, worse-than-expected business and consumer spending, along with declines in overall travel demand.

Chart courtesy of www.StockCharts.com

Connell Likes Hyatt as an Alternative to the Three Dividend-paying Resort Stocks to Purchase

Chicago-based Hyatt Hotels (NYSE: H) has not paid a dividend since Feb. 25, 2020, but it still received a $110 price objective from BofA, based on a valuation below more “asset-light peers” such as Hilton. BofA describes Hyatt as a way to ride a recovery in the hotel business cycle and to tap fee-based revenue, strong net unit growth (NUG), recovery potential and operating leverage through group and corporate-owned-hotel exposure, incentive management fee recovery and valuation multiple expansion.

BofA’s price target could be exceeded due to possible catalysts that include Hyatt’s asset sales exceeding expectations, acquisition of Apple Leisure Group giving additional upside, pent-up demand returning stronger than expected in second-half 2022 and net unit growth continuing to outperform lodging peers. Key risks to the price goal are maintaining significant exposure to China, which may face headwinds due to its strict zero-COVID policies, as well as cases of the virus pushing a return-to-office trend further out to act as a headwind to corporate travel and heavy exposure to the luxury segment that has lagged the rest of the lodging industry, BofA wrote.

At the onset of November, Hyatt reported a strong third-quarter performance. The company’s recent acquisition of the Apple Leisure Group, a luxury resort management service company, made the difference, said Connell, a former portfolio manager who now heads Dallas-based Portia Capital Management. The purchase allowed Hyatt to double its global resort footprint.

Now, 70% of Hyatt global portfolio is in the luxury and upscale hospitality segment. This bodes well, since the luxury consumer has not stopped spending on travel, Connell said.

Business travel is recovering from the pandemic, with 2022 near Hyatt’s pre-pandemic mark and 2023 looking bright, Connell said. Group booking revenue for the third quarter of 2022 finished just 3% below 2019 levels.

COVID-19 Should Not Endanger Three Dividend-paying Resort Stocks to Purchase

China is facing what is could be the world’s largest COVID surge since the pandemic began. Public health officials there are predicting as many as 800 million people could be infected with the coronavirus in the next few months. Several models predict that at least a half million people might die. One expert forecasts 10% of the planet’s population may become infected over the course of the next 90 days.

The U.S. Center for Disease Control and Prevention (CDC) last week urged people to wear masks to deter the spread of COVID-19, a circulating strain of the flu and a serious respiratory virus. CDC Director Dr. Rochelle Walensky said doing so would cut the chance of catching or spreading such virulent viruses.

With flu and respiratory syncytial virus spreading at high levels in the United States as COVID cases recently rose, America’s hospital emergency departments are strained. Walensky said everyone who is eligible to receive a bivalent booster and a flu shot should get them.

China’s economy may gain a short-term boost from relaxing its COVID-19-related lockdowns a bit, but if the virus causes a spike in cases and deaths in that country, shutdowns may resume. Lockdowns weaken the supply of goods and related public protests likely will ensue, as they have in the past when people in China are unable to go to work, shop and obtain additional food. A real estate slump also could occur in the world’s second-biggest economy.

COVID-19 cases in the United States totaled 99,829,206 and deaths climbed to 1,087,026, as of Dec. 16, according to Johns Hopkins University. America has the dreaded distinction of incurring the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths hit 6,663,314 people, up about 7,000 since Dec. 13, while total cases reached 652,265,740, Johns Hopkins reported on Dec. 16.

The U.S. Centers for Disease Control and Prevention reported that 267,907,969 people, or 80.7% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Dec. 14. People who have completed the primary COVID-19 doses totaled 228,831,995 of the U.S. population, or 68.9%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 44,154,294 people, up more than 4 million people in the past week, who are age 18 and up. The percentage of the U.S. population to receive the bivalent booster now accounts for 16.3% of the 18 and up age group, compared to 15.5% a week ago and 14.7% the week before that.

As for the war in Ukraine, Russia launched at least 76 missiles at different parts of Ukraine, including Kyiv, Odesa, Poltava, Zhytomyr, Kharkiv and Sumy, on Friday, Dec. 16, according to the Ukrainian Air Force. Russia is continuing its barrage of strikes that began in October that have damaged Ukraine’s energy and civilian infrastructure, causing power outages in amid freezing winter conditions.

The three dividend-paying resort stocks to purchase are mostly immune from Russia’s invasion of Ukraine that began on Feb. 24 and has escalated lately with especially fierce fighting in Bakhmut, a city and the administrative center with a pre-war population of 71,094 in Donetsk Oblast, Ukraine. Despite Russia’s leaders calling their continuing shelling and missile firing a “special military operation,” the three dividend-paying resort stocks to purchase cater to well-healed customers who can afford to splurge on travel even though an estimated 100,000 have been killed on each side of the Russia-Ukraine conflict that is showing no signs of abating.

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

Three dividend-paying hotel stocks to buy offer growth and income amid strong consumer demand and limited exposure to the effects of Russia’s ongoing invasion of Ukraine.

The three dividend-paying hotel stocks to buy received recommendations from BofA Global Research and seem poised to rise from their current reduced valuations. With both leisure and resort demand ranging between strong and stable, the outlook seems bright, despite recent threats from Russia’s President Vladimir Putin to wage a lengthy war in Ukraine and the Fed’s plan to keep raising interest rates in 2023 to curb inflation by slowing both economic and employment growth.

While leaders of hotel companies are conscious of the toughening macro backdrop, none have seen any material sign of slowing demand, according to BofA. Executives of most hotel companies pointed to sustained leisure demand, the return of group business and improvements in transient business activity boosting third-quarter results. Bookings, leads and meeting planner activity all remain healthy, BofA wrote in a recent research note.

“Most companies expect Q4 demand to look similar to Q3, and noted healthy trends through October,” according to BofA. “Several called out accelerating occupancy in October relative to September/Q3. The average 4Q outlook — for those providing it — is +2.9% ahead of 2019.”

Investment Advisory Service Forecasts Further Growth Ahead 

The Five Star Trader advisory service, led by free-market economist Mark Skousen, PhD, reported on Dec. 6 that the gross output (GO) statistic he uses to measure total economic spending is proving to be more accurate than gross domestic product (GDP) in assessing the economy’s strength. While real GDP, factoring in inflation, fell in the first two quarters of 2022, real GO kept climbing, indicating that there was no recession, Skousen wrote.

The value of the supply chain continues to boom, despite shortages, Skousen wrote to his subscribers. Although Skousen is not recommending a hotel stock right now, he has done so previously and may again in the months ahead. However, job creation is growing, and unemployment is still under 4%, as labor shortages remain, price inflation continues at the retail level and the U.S. government runs massive deficits, he added.

More than 70 million Social Security recipients will receive an 8.7% increase in payments starting this month, so inflation is not going away, projected Skousen, who also leads the Forecasts & Strategies investment newsletter.

“Wall Street is fearful that continued real growth means that the Federal Reserve will push for higher interest rates, and that’s why stocks have sold off over the past few days,” Skousen apprised subscribers of his Five Star Trader service that recommends both stocks and options. “The danger is always that the Fed overreacts, as it has done in the past, raising interest rates too high.”

Mark Skousen, a scion of Ben Franklin and head of Five Star Trader, meets Paul Dykewicz.

Three Dividend-paying Hotel Stocks to Buy Feature Who’s Who of Hospitality Industry

The three dividend-paying stocks to buy feature prominent names in the lodging industry and could benefit from exposure to certain markets outside the United States that appear to have an improving outlook. Internationally, Europe has performed much better than expected in the third quarter, while China could offer an opportunity in 2023, despite volatility partially caused by its zero-COVID policy and periodic strict lockdowns that have led to public protests, according to BofA.

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

Three Dividend-paying Hotel Stocks to Buy Feature Hilton Worldwide

Hilton Worldwide (NYSE: HLT), of McLean, Virginia, obtained a $160 price objective from BofA, based on a premium to historical multiples for this type of hotel business due to improving share gains and a leaner and more efficient business model. The lodging company is expected to sustain historically high earnings before interest, taxes, depreciation and amortization (EBITDA), BofA added. The price objective further is in line with a midcycle multiple on recovery earnings discounted back to 2022 estimates, according to BofA.

Risks to reaching the price objective include greater-than-expected economic weakness, leading to declines in travel demand, greater-than-expected delays in hotel development — possibly slowing system growth, worse-than-expected consumer spending to cause a possible dip in demand for timeshares and any acts or threats of terrorism, BofA cautioned.

Chart courtesy of www.StockCharts.com

Marriott International Makes List of Three Dividend-paying Hotel Stocks to Buy

Bethesda, Maryland-based Marriott International (NASDAQ: MAR) is a premier global hotel company, said Bob Carlson, a pension fund chairman who also heads the Retirement Watch investment newsletter. The hotel chain, located in a neighboring suburb to where I live in Maryland, operates brands across all income levels and through its hotels around the world.

Marriott also pioneered the model of owning few hotels, Carlson recalled. Instead, the company earns fees for franchising its brands and managing hotels under contract to property owners. The company has one of the top loyalty programs in the industry, giving it an advantage with travelers and hotel owners looking for partners, he added.

Since the company owns little real estate and has low debt, Marriott is something of a “pure play on growth in travel,” Carlson counseled. Its fees rise quickly as occupancy increases but can slide fast in a downturn, he continued.

Marriott is a “solid long-term” investment on travel and is likely to increase market share around the globe, Carlson told me.

Bob Carlson, investment guru of Retirement Watch, talks to Paul Dykewicz.

BoA set a $190 price objective on Marriott, based on approximately 16x its 2023 estimated earnings before interest, taxes, depreciation and amortization (EBITDA), showing a premium to historical multiples for this type of hotel business but in line with the group due to depressed interest rates. The price objective is also in line with a midcycle multiple on recovery earnings discounted back to 2022 estimates.

Downside risks to BofA’s price objective are greater-than-expected economic weakness, which may lead to declines in travel demand; the potential for terrorism, which may make individuals more reluctant to travel; greater-than-expected delays in new hotel development, which may slow growth in Marriott’s system; and worse-than-forecast business and consumer spending, which may lead to declines in overall travel demand.

Chart courtesy of www.StockCharts.com

Wyndham Wins Place Among Three Dividend-paying Hotel Stocks to Buy

Wyndham Hotels & Resorts, Inc. (NYSE: WH), of Parsippany, New Jersey, gained a $85 price objective from BofA, showing a discount to the valuation of its peers such as Hilton, Marriott and Rockville, Maryland-based Choice Hotels International (NYSE: CHH), while in line with the long-term average of asset-light lodging C-corps. BofA wrote that the multiple is warranted given Wyndham’s competitive advantage in scale and stability in earnings from its pure franchised business.

“We think the market is discounting WH to factor in a historically significant amount of deletions every year, offset by a business that’s almost entirely fee-based,” BofA wrote. “The price objective is also in line with a midcycle multiple on recovery earnings discounted back to 2022E.”

Potential catalysts to outperform BofA’s price target are a rising revenue per available room (RevPAR) environment, driven by better macroeconomic data, greater-than-expected margin expansion and net-unit-growth (NUG) ahead of expectations. However, the price target could be missed due to potential hurdles such as greater-than-expected economic weakness that may hurt travel demand, longer-than-expected delays in hotel development that could slow system growth and worse-than-expected business and consumer spending that could cause declines in overall travel demand.

Chart courtesy of www.StockCharts.com

Non-Dividend-paying Lodging Companies Offer Alternative to Three Dividend-Paying Hotel Stocks to Buy 

Las Vegas-based Caesars Entertainment Inc. (NASDAQ: CZR) does not pay a dividend but received a $65 price objective from BofA, based on a valuation multiple in line with the lodging company’s long-term historical average. Catalysts to potentially beat that projected share price gain mainly stem from management significantly exceeding its forecast through marketing reductions, gains in underlying revenue by regionals or Las Vegas operations, sports betting, opportunistic asset sales, land sales, joint ventures, licensing deals and a faster-than-expected recovery following COVID-19-related casino closures.

Risks to achieving the BofA price target include high financial and operating leverage used to fund the 2020 combination of Caesars Entertainment, Inc. and Eldorado Resorts, Inc. to form the largest gaming company in the United States. Additional risk stems from whether a cost reduction model can work in a market as competitive as Las Vegas, BofA wrote. Prolonged industry headwinds related to COVID-19 could further exacerbate these factors.

Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names, offering diversified gaming, entertainment and hospitality amenities. The company also aims to provide one-of-a-kind destinations and online gaming and sports betting experiences.

Chart courtesy of www.StockCharts.com

Hyatt Hotels Gains Spot Among Three Dividend-paying Hotel Stocks to Buy

Chicago-based Hyatt Hotels (NYSE: H) does not pay a dividend either but received a $110 price objective from BofA, based on a valuation below more “asset-light peers” such as Hilton. BofA views Hyatt as a way to chase a recovery in the hotel business cycle and to tap exposure to fee-based revenue, strong net unit growth (NUG), recovery potential and operating leverage through group and corporate-owned-hotel exposure, incentive management fee recovery and valuation multiple expansion

BofA’s price target could be exceeded due to possible catalysts that include Hyatt’s asset sales exceeding expectations, acquisition of Apple Leisure Group giving additional upside, pent-up demand coming back stronger than expected in second-half 2022 and net unit growth continuing to outperform lodging peers. Key risks to the price goal are maintaining significant exposure to China, which may face headwinds to COVID policies, COVID cases pushing the return to offices further out and acting as a headwind to corporate travel and heavy exposure to the luxury segment, which has lagged the rest of the industry, BofA wrote.

Chart courtesy of www.StockCharts.com

At the beginning of November, Hyatt reported a strong third-quarter performance. The company’s recent acquisition of the Apple Leisure Group, a luxury resort management service company, made the difference, said Michelle Connell, a former portfolio manager who now heads Dallas-based Portia Capital Management. The purchase allowed Hyatt to double its global resort footprint.

As of now, 70% of Hyatt global portfolio is in the luxury and upscale hospitality segment. This bodes well, since the luxury consumer has not pulled back on travel spending, Connell said.

Business travel is starting to recover from the pandemic, with 2022 about even to Hyatt’s pre-pandemic and a strong 2023 outlook, Connell continued. Group booking revenue for the third quarter of 2022 ended just 3% below 2019 levels.

Group travel bookings and reservations for the third quarter of 2023 are 30% ahead of 2019 levels, Connell told me. Asia, including China, has been strong for Hyatt and future prospects look even better, she added.

As of the second quarter of 2022, Hyatt’s revenue per room in China was 15 points higher than in 2019, Connell advised. China is 10% of the company’s revenue and 5% of its profits, she added.

“Due to the region’s strength, Hyatt it is in the process of continuing to build out its luxury brand presence in Asia, excluding China,” Connell said. Plus, Hyatt has a solid cash balance of almost $3 billion. Cash is spent on stock repurchases and debt reduction, added Connell, who estimates Hyatt’s share price could jump 15-20% in 2023.

Michelle Connell heads Portia Capital Management, of Dallas, Texas.

COVID-19 Will Not Crush Three Dividend-paying Hotel Stocks to Buy

The U.S. Center for Disease Control and Prevention recommended wearing masks to prevent the spread of COVID-19, a nasty strain of the flu and serious respiratory virus. CDC Director Dr. Rochelle Walensky said doing so would cut the chance of catching or spreading such viruses.

Indeed, flu and respiratory syncytial virus are spreading at high levels in the United States at the same time COVID is picking up, straining hospital emergency departments. Walensky urged everyone who is eligible to receive a bivalent booster and a flu shot.

China’s economy experienced COVID-19-related weakening due to lockdowns that curbed exports and imports more sharply than expected in November. Weak global and domestic demand, public protests about the county’s zero-COVID policy and a real estate slump are hurting the world’s second-biggest economy.

China’s police patrolled streets, checked cell phones and called some demonstrators to warn them against continuing their civil unrest. That response reduced protests about the country’s zero-COVID policy that is slowing economic growth and led many people to oppose the controversial lockdown policy of China’s leader Xi Jinping. China’s authorities may be starting to pay attention to the concerns of its citizens by slightly easing the current draconian lockdowns that are bogging down supply chains.

COVID-19 cases in the United States totaled 99,396,674 and deaths climbed to 1,084,396, as of Dec. 6, according to Johns Hopkins University. America has the dubious distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths hit 6,651,592 people, up almost 5,000 in the last three days, while total cases reached 648,474,478, Johns Hopkins reported on Dec. 9.

The U.S. Centers for Disease Control and Prevention reported that 267,654,789 people, or 80.6% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Dec. 7. People who have completed the primary COVID-19 doses totaled 228,604,758 of the U.S. population, or 68.9%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 40,007,377 people who are age 18 and up, accounting for 15.5% of the U.S. population in that age group on Dec. 7, compared to 14.7% a week ago.

None of the three dividend-paying hotel stocks to buy have much exposure to fallout from Russia’s invasion of neighboring Ukraine on Feb. 24 and the persistent shelling and missile attacks occurring since then. Even though Russia’s leaders call that assault on Ukraine a “special military operation,” the three dividend-paying hotel stocks to buy largely seem protected by focusing on serving patrons who have money to spend on travel and are not directly affected by the deaths of an estimated 100,000 on both sides of the continuing conflict that shows no signs of ending soon.

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

Three dividend-paying sports leisure stocks to buy as Russian missiles continue to fly feature a U.S. motorcycle company and two full-line sporting goods and outdoor recreation retailers.

They should power through various economic problems such as high inflation, further interest rate hikes by the U.S. Federal Reserve and recent technology industry layoffs. Neither should the three dividend-paying sports leisure stocks to buy be derailed by financially struggling social media business such as Twitter Inc., which billionaire Elon Musk recently purchased.

Meanwhile, Russia’s ongoing invasion of Ukraine is creating a humanitarian crisis as temperatures drop below freezing in the capital of Kyiv and plunge even further in the countryside. The three dividend-paying sports leisure stocks to buy are not as vulnerable to the conflict as many other companies that are directly affected by the fighting or rely on supplies from that region of the world.

Three Dividend-paying Sports Leisure Stocks to Buy as Russian Missiles Aimed at Civilians Continue to Fly

In addition, Ukraine’s energy infrastructure has been severely damaged and left impaired by Russia’s attacks in many parts of the country. The situation deteriorated so badly that U.S. Secretary of State Antony Blinken recently announced $53 million in new aid to help restore Ukraine’s power grid.

Russia’s continuing attacks of neighboring Ukraine risk escalating its war to other nearby countries that are part of NATO. Two Russian-made missiles landed in Poland and caused the death of two civilians on farms in a village roughly four miles, or 6.4 kilometers, west of the Ukrainian border on Tuesday afternoon, Nov. 15. The Russian-made missiles either came from Ukraine’s attempt to fend off the aggressor’s attacks or misfires from Russia that unintentionally reached Poland. Regardless of how missiles killed the two civilians in the NATO nation of Poland, they died due to Russia’s so-called “special military operation” that began on Feb. 24.

“This is not Ukraine’s fault,” NATO Secretary-General Jens Stoltenberg said. “Russia bears ultimate responsibility.”

Russia’s sustained attack of Ukraine has killed more than 100,000 people on each side, according to Mark Milley, Chairman of the U.S. Joint Chiefs of Staff. He also estimated Russia’s invasion created 15 million to 30 million Ukrainian civilian refugees.

Harley-Davidson Leads Three Dividend-paying Sports Leisure Stocks to Buy

Harley-Davidson Inc. (NYSE: HOG), a Milwaukee, Wisconsin-based motorcycle manufacturer founded in 1903, is rated a ‘buy” with a $60 a share by BofA Global Research. The valuation is based on 11-12x the investment firm’s fiscal year 2023 earnings per share estimate of $5.15. Key reasons for the optimistic outlook include new rider interest, increased focus on per unit profitability with a goal of improving Harley-Davidson Motor Company (HDMC) margins to 2014-2015 levels and demographics shifting to a tailwind as the U.S. population of people aged 35-55 grow to add core customers for HOG U.S. retail sales.

Supply chain constraints have drastically restrained new motorcycle sales. However, total new and used motorcycle sales are up, according to IHS registration data. BofA’s full-year 2022 forecasts of HOG’s new motorcycle sales assumes that worldwide shipments are more than 10% below 2019 levels. Due to HOG’s recent production shutdown, 10,000-12,000 shipments were impacted in 2Q 2022, but BofA predicted HOG should recapture lost production in the second half of the year.

Mark Skousen, PhD, has successfully recommended Harley-Davidson in the past through his Home Run Trader advisory service. The last time he did so, subscribers who followed his advice were able to collect a 12.64% gain in the stock and 144.44% in related call options.

Mark Skousen, Forecasts & Strategies chief and Ben Franklin scion, meets Paul Dykewicz.

Skousen, who also leads the Forecasts & Strategies investment newsletter, is a free-market economist who uses his knowledge of emerging trends to help him invest in sectors when they have favorable tailwinds. The recent share-price performance of Harley-Davidson shows the company’s prospects are on the rise.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Sports Leisure Stocks to Buy as ‘HOG’ Roars Like a Lion 

Harley-Davidson recently reported third-quarter 2022 earnings per share (EPS) of $1.78, compared to BofA’s estimates of $1.52, led by a 19% year-over-year increase in global shipments, which jumped 57,061 versus estimates of 56,469 as HOG recovered the lions share of volume from a second-quarter production shutdown. Motorcycle and related revenue increased 23.8%, and the financial services earnings before interest and taxes (EBIT) margin reached 38.3%.

Michelle Connell, a former portfolio manager who leads Portia Capital Management, of Dallas, Texas, spoke highly of Harley-Davidson’s outlook. No other motorcycle brand exceeds Harley-Davidson in reputation and prestige, Connell continued. Ownership of a Harley-Davidson motorcycle is seen as an entrance into an elite club of members seeking adventures, she added.

Those purchases play into the theme that consumers are seeking experiences when buying the products, Connell said. Those consumers are not simply motivated by purchasing “things,” Connell counseled.

Concerns of Harley-Davidson losing relevance with baby boomers is not valid, Connell opined. The company has established programs that help their motorcycles appeal to younger riders, including females, she added.

Michelle Connell heads Portia Capital Management, of Dallas, Texas.

“Harley-Davidson is starting to reap the rewards of the five-year plan that it announced in May 2020,” Connell said. “This plan is three-plunged in approach: expansion of the Harley-Davidson brand into new markets and buyers, as well as products; improve profitability; and introduce electric motorcycles.”

Due to its solid brand recognition, five-year corporate plan and its compelling and attractive financial metrics, Connell said the stock has a place in a long-term investor’s portfolio that needs consumer discretionary names. But on weakness, she recommended, to capture potential upside of 20-25% by the end of 2023.

Three Dividend-paying Sports Leisure Stocks to Buy: Get Your Kicks from Dick’s Sporting Goods

Pittsburgh-based Dick’s Sporting Goods (NYSE: DKS) is the largest full-line sporting goods and outdoor recreation retailer in the United States, offering differentiated product lines and elevated private label assortment, according to BofA. The investment firm gave the stock a $140 price objective and a “buy” rating. The company continues to benefit from the shift to solitary leisure activities, as well as improving demand for the footwear it sells.

Downside risks to meet that price objective are a weakening of the macro environment and rising gas prices, as well as potential secular headwinds in the golf category, weakened customer traffic trends, higher-than-expected cost pressures and the risk of a more competitive pricing environment. The company’s stock has surged since the summer but has further room to rise, BofA assessed.

Connell said she likes Dick’s Sporting Goods but prefers Harley-Davidson. Dick’s Sporting Goods sells virtually every imaginable athletic product and it is where I bought my last softball glove. 

Chart courtesy of www.stockcharts.com

Three Dividend-paying Sports Leisure Stocks to Buy Include Academy Sports

Jim Woods, who leads the Bullseye Stock Trader advisory service and the Successful Investing newsletter, also is an avid weightlifter and fitness buff. He previously recommended a fitness stock that soared. Subscribers to his Bullseye Stock Trader service who followed his guidance could have notched returns of 23.54% in the stock and 100.76% gain in the related call options he chose.

Paul Dykewicz, head of Bullseye Stock Trader meets with Jim Woods in Washington, D.C.

Investors who want to do likewise may want to consider Academy Sports + Outdoors (NASDAQ: ASO), of Katy, Texas. Originally founded in 1938 as a family business, Academy Sports has grown to 268 stores across 18 states. The mission of Academy Sports is to provide “Fun for All,” offering a localized merchandising strategy and value proposition to connect with a broad range of consumers. The product assortment focuses on key categories of outdoor, apparel, footwear and sports and recreation through both national and private label brands.

BofA set a $68 price objective on Academy Sports, based on 10 X 2023 Generally Accepted Accounting Principles (GAAP) earnings per share (EPS), in-line with the average price-to-earnings (P/E) ratio for the athletic/sporting goods retail group. Key reasons include: the long-term EPS compound annual growth rate (CAGR) is in line to slightly above Athletic/Sporting Goods Retail group average of 13%, a broad range of high demand “solitary leisure” merchandise and value-oriented products that should benefit from favorable demographics as budget-conscious millennials enter their “household formation” years and increasingly shop at discount store, BofA wrote in a recent research note.

Risks to Academy Sports reaching BoA’s target price are the emergence of Amazon as a more significant competitor, Nike choosing to allocate product differently in the future, competitive pressures such as expansion by Dick’s Sporting Goods into value-oriented apparel and extension of Kohl’s and Target active products, reliance on Chairman Ken Hicks and increased regulation affecting the sale of firearms and ammunition. An update on Academy Sports should be provided on Dec. 7 when the company is scheduled to report its third-quarter fiscal 2022 financial results before the market opens.

Chart courtesy of www.stockcharts.com

Three Dividend-paying Sports Leisure Stocks to Buy Affected by COVID-19 Cases

With COVID becoming less of a problem than during the past couple of years, fitness aficionados may be tempted to increase their participation in group leisure. But any companies that are affected by supply chain snags could be hurt by China’s security apparatus moving quickly to quash mass protests that followed strict lockdowns as cases of COVID-19 swept the country during the past week or so.

China’s police patrolled streets, checked cell phones and called some demonstrators to warn them against continuing their civil unrest. That response has reduced protests about the country’s zero-COVID policy that is slowing economic growth and had led many people to publicly oppose the controversial lockdown policy of China’s leader Xi Jinping. If China’s authorities do not pay attention to the concerns of their citizens, draconian lockdowns could cause intensified clashes and bog down supply chains.

COVID-19 cases in the United States totaled 98,961,736 and deaths reached 1,081,410, as of Dec. 2, according to Johns Hopkins University. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,639,746 people, while total cases reached 644,655,254, Johns Hopkins reported on Dec. 2.

The U.S. Centers for Disease Control and Prevention reported that 267,346,533 people, or 80.5% o the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Nov. 30. Those who have completed the primary COVID-19 doses totaled 228,369,460, of the U.S. population, or 68.8%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 37,885,266 people who are age 18 and up, accounting for 14.7% of the U.S. population in that age group.

Despite Russia’s leaders calling their country’s attacks against Ukraine a “special military operation,” firing into Ukraine unrelentingly and causing the death of two Polish civilians, investors stil have good place to put their money. The three dividend-paying sports leisure stocks to buy give investors a way to navigate risk and pursue reasonable returns and income payouts amid increased economic risks.

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

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