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.

Two dividend-paying leisure stocks to purchase for rebound potential feature a global mountain resort operator and a giant retailer that sells a vast array of products from athletic wear and exercise equipment to groceries.

Rising energy costs, worsened by Russia’s Feb. 24 invasion of Ukraine, and a shift toward leisure should not sabotage either of the two dividend-paying leisure stocks to purchase. Pent-up interest in recreation as the economy and employment stay strong could propel each of these two dividend-paying leisure stocks as they attempt to bounce back from the fallout of a global pandemic that began to plague America during early 2020.

Risk remains, based on aggregated BC credit and debit card data, which showed total card spending slowing in September across goods categories, as spending on leisure services leveled out. The data may signal economic reopening tailwinds on discretionary services are fading. In addition, the BofA US Economics team expects a recession, accompanied by a labor market slowdown and further weakness in consumer spending, during first-quarter 2023.

Please see https://www.stockrover.com/black-friday-sale/

Inflation-Resistant Walmart Is One of Two Dividend-paying Leisure Stocks to Purchase

Walmart Inc. (NYSE: WMT), of Bentonville, Arkansas, is one of the few stores that’s likely to benefit from high inflation, since it offers the “best discounts” of any major retailer, said Jim Woods, leader of the Intelligence Report newsletter and co-chief of the Fast Money Alert advisory service that recommends both stocks and options. His co-lead with the Fast Money Alert advisory service is Mark Skousen, PhD, who also heads the Forecasts & Strategies investment newsletter and is a fellow fan of dividend-paying stocks.

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

Woods told me he recommends Walmart in the Income Multipliers portfolio of his Intelligence Report newsletter partly due to its history of raising annual dividends. The stock also surged by rising 10.88% in the past month and 12.72% in the last three months.

Paul Dykewicz meets with Jim Woods in Washington, D.C.

Walmart Earns Place Among Two Dividend-paying Leisure Stocks to Purchase

The company produced strong revenue growth globally, with strength in Walmart U.S., Sam’s Club U.S., Flipkart and Walmexm in its fiscal 2023 third quarter results released on Nov. 15, 2022. Total revenue reached $152.8 billion, up 8.7%, or 9.8% in constant currency, Walmart announced.

Walmart helps people around the world save money and offers a wide array of products at its retail stores, online and through its customers’ mobile devices. Each week, approximately 230 million customers and members visit more than 10,500 stores and numerous eCommerce websites under 46 banners in 24 countries. The company’s fiscal year 2022 revenue totaled $573 billion.

Chart courtesy of www.stockcharts.com

Vail Resorts Rates as One of Two Dividend-paying Leisure Stocks to Purchase

Another BofA recommendation, also favored by New York-based Baron Funds, is Vail Resorts (NYSE: MTN), of Broomfield, Colorado. 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.

One shareholder of Vail Resorts is the Baron Growth Fund (BGRFX). BofA rates Vail Resorts as a buy, as does Michelle Connell, the chief executive officer of Portia Capital Management, of Dallas, Texas.

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

Connell’s key reasons 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 has 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

Vail Resorts has a long history in the ski industry, starting with the opening of Vail Mountain in 1962. It now has 37 resorts in 15 states and three countries, including some of the world’s most iconic destinations, as well as travel-centric retail and hospitality businesses.

The company’s subsidiaries operate destination mountain resorts and regional ski areas such as Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow and Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; and Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in Pennsylvania. Vail Resorts owns and operates a variety of world-class luxury resorts for spa vacations or adventurous mountain lodges for relaxing after a day on the slopes.

SeaWorld Offers Non-Dividend Alternative to Two Dividend-paying Leisure Stocks to Purchase

Skousen, chief of the Forecasts & Strategies investment newsletter and advisory services that also include Home Run Trader, recommends SeaWorld Entertainment (NYSE: SEAS), of Orlando, Florida. The theme park and entertainment company has become a “big beneficiary” of the new post-pandemic economy, he added.

SeaWorld’s revenue hit $1.7 billion over the last 12 months, while its third-quarter earnings jumped 32% on an 8.4% increase in sales. Plus, shares of SeaWorld have soared nearly 300% over the past five years, despite the pandemic, Skousen said.

With the lockdowns over and consumers choosing to spend more on experiential services, the outlook for SeaWorld is exceptional, Skousen recently wrote to his Home Run Trader subscribers.

Chart courtesy of www.stockcharts.com

Insider Buying Boosts the Alternative of Two Dividend-paying Leisure Stocks to Purchase

SeaWorld’s Treasurer and Chief Financial Officer Michelle Adams recently purchased 39,000 shares at $51.03, an investment of nearly $2 million. She now owns more than 75,000 shares.

In addition, Chief Commercial Officer Christopher Finazzo purchased 8,950 shares a couple weeks later. He owns over 72,000 shares.

These are “two savvy insiders,” Skousen wrote to his subscribers. He advised that they own the stock, too.

Another reason Skousen said he likes SeaWorld is that his daughter Hayley, a professional figure skater, is performing in a principal role in SeaWorld’s Christmas Celebration in Orlando, Florida. The following link shows her doing a backflip. Her husband, Pablo, also works there as a musician.

The company’s recognized brands include SeaWorld, Busch Gardens and Sea Rescue. The latter unit saves and rehabilitates marine animals that are ill, injured or abandoned, with the goal of returning them to the wild.

During SeaWorld’s 50-year history, it has built 12 destination and regional theme parks in key markets across the United States, hosting an average of more than 20 million visitors a year.

SeaWorld Jumps, Despite Missing a Spot Among Two Dividend-paying Leisure Stocks to Purchase

Guests at SeaWorld attractions receive a variety of up-close experiences with wildlife, as well as thrill rides and shows. SeaWorld also has produced Parent’s Choice and Emmy-Award-winning shows like Sea Rescue and The Wildlife Docs that celebrate the natural world.

“The pandemic was a big negative for entertainment parks, of course, as they were forced to shut down,” Skousen wrote to his subscribers. “But most of them are coming back in a big way. And SeaWorld is no exception.”

Revenue hit $1.67 billion over the last 12 months and sales are up 15% year-over-year, Skousen noted. With the pandemic waning, the outlook remains positive, he added.

Skousen not only recommended the stock, but SeaWorld call options, too. His Home Run Trader service offers both ways to profit.

Bivalent COVID-19 Vaccine Could Lift Two Dividend-paying Leisure Stocks to Purchase

A new bivalent COVID-19 booster provides superior protection against the omicron BA.5 variant, which currently is the predominant strain of the virus. I received the new booster on Oct. 16 once it became available at pharmacies near my house.

However, 200-plus million Americans who are eligible have yet to accept the new booster. New cases and deaths can hurt demand for leisure activities, so a bivalent booster could enhance both public health and the economy.

Cases in the country totaled 98,500,124 and deaths reached 1,104,221, as of Nov. 23. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,625,790, as of Nov. 23, according to Johns Hopkins University. Global COVID-19 cases reached 639,505,684.

Roughly 80.6% of the U.S. population, or 267,476,279, have received at least one dose of a COVID-19 vaccine, as of Nov. 16, according to the latest CDC data. People who obtained the primary COVID-19 doses totaled 228,154,832 of the U.S. population, or 68.7%, the CDC reported. The United States also has given a bivalent COVID-19 booster to 33,831,057 people who are age 18 and up, accounting for 13.1% of the U.S. population in that age range.

Despite Russia’s sustained attacks against Ukraine that the aggressor’s President Vladimir Putin describes as a “special military operation,” people outside of the current war zones still are able to enjoy leisure activities. Investors seeking a potentially good run may want to consider the two dividend-paying leisure stocks to purchase.

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.

Four natural gas income investments to weigh feature consistent dividend payers as Ukraine tries to keep Russia’s missiles away, especially from residential areas and power plants.

The four natural gas income investments to weigh offer an opportunity for growth and dividend payments amid Russia’s continuing attacks of neighboring Ukraine that even led to the death of two Polish civilians on farms when Russian-made missiles hit their village of Przewodow, roughly four miles, or 6.4 kilometers west of the Ukrainian border on Tuesday afternoon, Nov. 15. The Russian missiles reportedly either came from Ukraine while attempting to fend off Russia’s attacks or Russian misfires that unintentionally reached Poland.

Either way, the need for alternative energy sources, such as natural gas, is growing as the existing power supply in Ukraine remains under assault. Regardless of exactly how missiles killed the two civilians in the NATO nation of Poland, they lost their lives because of Russia’s so-called “special military operation” that began on Feb. 24 and has led to the deaths of more than 100,000 people on each side of Russia’s war against Ukraine, according to Mark Milley, Chairman of the U.S. Joint Chiefs of Staff. He also estimated Russia’s invasion has forced anywhere from 15 million to 30 million Ukrainian civilians to become refugees.

The four national gas income stocks to weigh could be part of a solution to provide power to people who desperately need it as winter approaches and Russia’s persistent attacks plunge Ukrainians into cold and dark conditions far removed from conventional military activity. Roughly 10 million people lost power on Tuesday, Nov. 15, due to Russia’s “terrorist” attacks against Ukraine, its President Volodymyr Zelensky announced on his Twitter account.

Zelensky reported that power engineers and repairmen restored electricity supply to eight million consumers in the hours after the attacks. Repairs continued the rest of the night and subsequent days as Russia persisted in its assault against Ukrainian’s power infrastructure.

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EPD Is One of Four Natural Gas Income Investments to Weigh as Ukraine Seeks to Keep Russia’s Missiles Away 

The four natural gas income investments to weigh offer opportunities to tap into rising demand for alternatives to energy sources that previously had been provided by Russia before it began the Feb. 24 invasion, followed by cutting off supply to European countries such as Poland that objected to the attacks against the sovereign nation of Ukraine. The United States is among many countries that have chosen to stop importing Russia’s oil and natural gas, while Germany and other nations that lack immediate access to substitute sources of energy are seeking to scale back those imports that are funding the war against Ukraine initiated by Russia’s President Vladimir Putin.

Houston-based pipeline and energy storage company Enterprise Products Partners (NYSE: EPD) is a recommended position of Mark Skousen, PhD, a descendant of Benjamin Franklin, who leads the Forecasts & Strategies newsletter. I first learned about the company from him and subsequently bought shares myself that have produced returns so far this year of 21.95%. In contrast, the S&P 500 has slid 16.97%.

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

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

In addition, Enterprise Products Partners provides NGL transportation, fractionation, storage and import and export terminals. It further offers crude oil gathering, transportation, storage and terminals, along with petrochemical and refined products transportation, storage and terminals, as well as a marine transportation business.

Chart courtesy of www.stockcharts.com

Cheniere Energy Is Second of Four Natural Gas Income Investments to Weigh 

Houston-based Cheniere Energy Inc. (AMEX: LNG) became the first U.S. company to export liquefied natural gas (LNG) in February 2016 and it has found a niche in serving overseas markets. Cheniere Energy now is the largest liquefied natural gas exporter in the United States.

Business is booming, said Skousen, who recommends it in his Forecasts & Strategies newsletter. He also recommended it earlier this year in his TNT Trader advisory service before informing his subscribers to sell it for a profit.

Cheniere’s revenues surged 165% in the past year to $8.1 billion. Its earnings also soared, while management’s guidance is strongly positive as demand grows from European customers seeking to replace Russian gas. Cheniere Energy recently signed long-term contracts to deliver about 140 million tons of liquid natural gas through 2050.

Chart courtesy of www.stockcharts.com

The U.K. government confirmed it is in talks for an LNG purchase agreement with Cheniere Energy, among others, Skousen informed his subscribers. Currently, 70% of Cheniere’s cargo of LNG is landing in Europe, he added.

Connell Praises Cheniere Energy as One of Four Natural Gas Income Investments to Weigh 

The purchase of shares in Cheniere Energy may be a timely idea due to Russia’s Nov. 15 air strikes in Ukraine to mark the biggest attack in a month, said Michelle Connell, CFA, president and owner of Portia Capital Management, of Dallas, Texas. Cheniere Energy currently has a #1 rank from Zacks, with a consensus estimate for 2022 earnings and sales of year-over-year growth of 212.3% and 103.2%, respectively.

Connell told me her analysis is that Cheniere Energy conservatively has 12-18-month upside of 20%. Some sell-side analysts forecast price targets more than 30% above current levels. The stock already has jumped 64.53% so far this year through Nov. 18.

Michelle Connell is the CEO of Portia Capital Management, of Dallas, Texas.

Exxon Mobil Joins Four Natural Gas Income Investments to Weigh

Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM) offers exposure to the LNG market. Indeed, the dividend-paying company ranks as the world’s second-largest supplier of natural gas, pays a 3.3% dividend yield and already has jumped more than 91.08% so far in 2022.

Chart courtesy of www.stockcharts.com

Germany is among the European countries that are seeking to transition completely from importing oil and LNG from Russia but need to turn to alternative producers in countries such as the United States. Europe is viewing LNG as its main energy substitute, with a plan to reduce Russian energy imports by two-thirds this year.

However, prices in remain high. The producer price index, which generally reflects supply conditions in the economy, climbed 8% on a 12-month basis in October, a slight dip from September’s revised 8.4% rise.

Jim Woods, head of the Intelligence Report investment newsletter and the High Velocity Options trading service, recommends Exxon Mobil stock and call options, respectively. Both trades are profitable, and he is continuing to recommend them to pursue heightened returns.

Paul Dykewicz meets with Jim Woods in Washington, D.C.

Pension Chairman Recommends ETF as One of Four Natural Gas Income Investments to Weigh 

Cohen & Steers MLP & Energy Opportunity Fund (MLOAX) is a fund that is favored by Bob Carlson, a pension chairman and head of the Retirement Watch investment newsletter. Natural gas should remain a good investment, if Europe keeps looking for ways to reduce its energy dependence on Russia, he added.

In addition, the natural gas drillers in the United States are focused on increasing cash flow and earnings, Carlson said. They are not inclined to maximize drilling expenses in the short run to increase output, he added.

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

Good investment opportunities can be found with companies that provide the pipelines, storage facilities and other infrastructure needed to supply the world with natural gas and other energy sources, Carlson told me. One appeal of these investments is that their revenues are independent of the prices of the commodities, Carlson counseled.

“The firms charge fees for their services, and the fees often are adjusted for inflation,” Carlson said. “Their revenues and earnings depend on the volume of commodities passing through their facilities, not the price of the commodity.”

BofA Global Forecasts Favorable Conditions for Four Natural Gas Income Investments to Weigh 

“Given the greater weight of gasoline in the generic U.S. refining yield, we continue to believe U.S. refiners are poised for extended period of elevated refining margins, well above mid cycle in 2023, but with mid cycle itself being reset on multiple levels, starting with the continued arbitrage between European and U.S. natural gas,” BofA Global wrote.

Demand growth is set to slow in 2023, especially as the economic outlook continues to dim, BofA wrote. The investment firm’s U.S. economists anticipate a recession in 2023, with gross domestic product (GDP) shrinking 0.6% year over year.

Although natural gas demand is volatile and highly dependent on weather, industrial gas demand has contracted in each recession year since 2000. As demand from these sectors shrinks year over year, BofA predicts LNG export growth of 1.4 Bcf/d year over year due to the Freeport LNG restart.

“In aggregate, U.S. natural gas demand should rise 1.5 Bcf/d in 2023, just one-third the pace of growth in 2022,” BofA estimated.

BofA maintains a $4.50/MMBtu forecast for 2023, or $0.35/MMBtu below the curve. Henry Hub could trade sub-$4 if economic headwinds prove more wicked than expected or LNG loadings and Mexico exports disappoint, the investment firm added.

Bivalent COVID-19 Vaccine Gives Improved Protection Against New Variant

A new bivalent COVID-19 booster in the United States offers superior protection against the omicron BA.5 variant, now the predominant strain of the virus. I received the new booster on Oct. 16 after it became available at pharmacies not far from my house.

However, 200-plus million Americans who are eligible have yet to seize the opportunity. New cases and deaths can hurt demand for natural gas, so a bivalent booster that becomes widely used could aid both public health and the economy.

Cases in the country totaled 98,301,472 and deaths reached 1,077,020, as of Nov. 18. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,619,779, as of Nov. 18, according to Johns Hopkins University. Global COVID-19 cases reached 637,577,338.

Roughly 80.6% of the U.S. population, or 267,476,279, have received at least one dose of a COVID-19 vaccine, as of Nov. 16, the CDC reported. People who obtained the primary COVID-19 doses totaled 228,154,832 of the U.S. population, or 68.7%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 33,831,057 people who are age 18 and up, accounting for 13.1% of the U.S. population in that age range.

Despite Russia’s leaders calling their country’s attacks against Ukraine that began on Feb. 24 a “special military operation,” firing into Ukraine also killed two Polish civilians to further inflame an already volatile situation. Investors seeking ways to avoid losing money in the markets amid such uncertainty and escalation of violence should consider the four natural gas income investments to weigh.

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.

Five electric vehicle income stocks to consider offer alternatives to Tesla Inc. (NASDAQ: TSLA).

The five electric vehicle income stocks to consider trade at much lower price-to-earnings (P/E) ratios than Tesla, while offering a chance for capital appreciation due to increases in their respective share prices and dividends that enhance total return.  Tesla’s 58.75 price-to-earnings ratio is far more than that of the dividend-paying legacy electric vehicle (EV) stocks like Stuttgart, Germany-based Mercedes-Benz Group AG (OTC: MBGYY), 5.89; Detroit-based General Motors (NYSE: GM), 6.99; Dearborn, Michigan-based Ford Motor Co. (F), 6.45; Toyota City, Japan-based Toyota Motor Corporation (NYSE: TM), 11.55; and Maranello, Italy-based Ferrari N.V. (NYSE: RACE) 42.86.

When asked directly why investors would buy shares of non-dividend-paying Tesla at its much higher P/E valuation rather than dividend-paying EV competitors, its founder and Chief Executive Officer Elon Musk told attendees at the recent Baron Funds Investment Conference in New York that he advised the investing public in the past that Tesla shares were too high, “and they ignore me and buy the stock anyway.”

Chart courtesy of Stock Rover.  Learn more about Stock Rover

Five Electric Vehicle Income Stocks to Consider Feature Legacy Manufacturers

Musk, a serial entrepreneur, used self-deprecating humor amid while analyzing business and technology challenges. I attended the event and witnessed Musk show restraint when responding to questions about the valuation of Tesla, his market-leading electric vehicle company, as well as his newly acquired social media company, Twitter Inc. (NASDAQ: TWTR).

His “surprise” appearance at the Baron Funds conference on Friday, Nov. 4, gave Musk an opportunity to offer updates and respond to queries on the same day about both of the large public companies he controls and now leads. His interview at the Metropolitan Opera House with Ron Baron, chief executive officer of Baron Capital, the holding company of Baron Funds, and portfolio manager of Baron Partners Fund and Baron Focused Growth Fund, occurred the day Twitter announced plans to cut roughly 3,700 jobs, or almost half its workforce. He also discussed SpaceX, his privately held rocket launching and broadband satellite services company.

Paul Dykewicz meets with Ron Baron, CEO of Baron Capital

Five Electric Vehicle Income Stocks to Consider Other than Tesla

Tesla’s share price dropped after the company voluntarily recalled 40,168 of its 2017-2021 Model S and Model X electric vehicles on Oct. 25 due to the risk that they could incur a loss of the power steering assist system (EPAS), according to a Nov. 1 filing with the National Highway Traffic Safety Administration. The recall, announced on Tuesday, Nov. 8, contributed to Tesla’s stock slipping to a 52-week low of $177.59 per share.

Chart courtesy of www.stockcharts.com

Tesla’s mission statement is to accelerate the “world’s transition to sustainable energy,” and the company is causing its dividend-paying industry rivals to follow suit. The largest shareholder of Tesla is Baron Funds, so Musk agreed to take a red-eye flight to appear at the company’s recent conference in New York. Musk, who has been described as a “modern-day Leonardo de Vinci,” told the audience of about 5,000 attendees that he believed Tesla has significantly “accelerated the advent of sustainable energy.”

“Before Tesla, no one was doing electric cars,” Musk said in response to a question from Baron. “As a result of Tesla, almost every major car company in America is building electric cars.”

After Baron’s half-hour interview with Musk ended, the fund company chief called on Mark Skousen, a major investor in Baron Funds and leader of the Forecasts & Strategies investment newsletter, to ask a question.

Elon Musk is interviewed by Ron Baron.

Why Not Invest in Mercedes-Benz, a Major Baron Funds Investor Asked Musk?

Skousen began by quoting the Roman philosopher Seneca, saying, “There is no great genius without a touch of madness.” Musk responded humorously, “I like the madness part.” Then Skousen asked Musk if Tesla, of Austin, Texas, trading then at 70 times earnings, rather than dividend-paying Mercedes-Benz (OTC: MBGAF), selling for five times earnings. Both companies sell electric vehicles. As this video of the half-hour interview shows, Musk did not disagree with the analysis.

Mark Skousen has post-conference conversation with Ron Baron.

Mercedes-Benz, an industry leader in luxury vehicles, is delivering “blockbuster sales and earnings,” Skousen advised his Home Run Trader advisory service subscribers in his latest update. Skousen, who also is a presidential fellow in economics at Chapman University and the school’s inaugural Doti-Spogli Chair in Free Enterprise, recently recommended Mercedes-Benz to his Home Run Trader subscribers.

Chart courtesy of www.stockcharts.com

Mercedes-Benz Stands Out as One of Five Electric Vehicle Income Stocks to Consider

Mercedes-Benz is one of the world’s preeminent luxury car companies and sells vehicles almost worldwide, Skousen wrote to his Home Run Trader subscribers. The company also offers financing, leasing, car subscriptions, fleet management, digital services and insurance brokerage options.

“Traditionally, Mercedes has sold only gas-powered cars, but that is rapidly changing,” Skousen opined. “Its sales of electric cars surged 64% last year, and Mercedes achieved several technological milestones.”

Mercedes introduced four electric vehicles and gained the first international system approval for SAE-Level Three automated driving. Indeed, the company is rolling out a raft of new electric vehicles this year and beyond.

Despite an ongoing semiconductor shortage and bottlenecks in logistics, third-quarter earnings at Mercedes soared 59% on a 19% increase in sales, Skousen noted. The manufacturer found “particularly robust demand” for its premium models and electric vehicles, he added.

Demand continues to outstrip supply, Skousen continued. With the global supply chain returning to normal in the months ahead, Mercedes is well positioned to capitalize on future sales growth, he observed.

Acquisition May Aid One of Five Electric Vehicle Income Stocks to Consider

In October, Mercedes finalized a supply agreement with Rock Tech Lithium to secure the high-quality lithium needed in battery production. This will allow it to rapidly scale up its production of fully electric vehicles.

Despite high inflation and interest rates, retail data so far show highly affluent consumers are not cutting spending. Essentials make up a small percentage of their total spending, so the well-heeled consumers have money to spurge on luxury goods, Skousen commented.

Skousen has recommended Tesla profitably twice in the past in one of his trading services but opined that he now sees better value in Mercedes-Benz. In 2020, Skousen recommended that his subscribers buy Tesla, then later recommended selling half of the stock on Feb. 4, at $912.16 for a 58.07% gain. The remainder stopped out on Feb. 5 at $823.39 for a 42.69% profit.

Also in 2020, Skousen’s subscribers profited handsomely with TSLA June 19 $690 call options. After advising their purchase, Skousen recommended selling half on Jan. 30 for a 53.55% gain, then selling half the remainder on Feb. 3 for a 252.96% profit. Upon stopping out of the stock on Feb. 5, his subscribers who sold the rest of the call options could pocket a gain of 365.42%.
Pension Fund Chairman Discusses Five Electric Vehicle Income Stocks to Consider
“Investors interested in profiting from EVs over the long term would do better to focus on the legacy car manufacturers than most of the newer companies specializing in EVs,” said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. “The legacy manufacturers devoted significant resources to EVs and see them as the future. Their efforts are paying off while they continue to profit from gas and hybrid vehicles.”
While the sales numbers still are relatively small, EV sales by the legacy manufacturers are “growing rapidly,” Carlson said.
For example, GM and Ford both are expanding EV sales. At the end of the third quarter, GM announced that it sold about 15,000 EVs, accounting for about 8% of the U.S. market, compared to just 4% of the market a year earlier, Carlson commented.
“GM’s planning a series of new EV vehicles and expects to sell one million of them by 2025,” Carlson said.
Bob Carlson, founder and leader of the Retirement Watch investment newsletter, meets with Paul Dykewicz in Washington, D.C.
GM Ranks Among Five Electric Vehicle Income Stocks to Consider
General Motors received a price objective of $90 per share from BofA Global Research, reflecting a multiple toward the higher end of GM’s historical range of 3-6 times earnings. BofA opined that the company’s core business is well managed amid a choppy macro environment.
GM is in the process of developing the necessary components of the future of mobility services, including an autonomous electric vehicle fleet through Cruise Anywhere and connectivity driven by OnStar. The price target could be exceeded or fall short of projections, depending on several factors.

Risks that could hurt GM include a material downturn in U.S. auto sales, a sustained rise in input costs, disruption in the supply base, significant increase in gas prices, unwillingness of dealers to shoulder inventory risk, suppliers gain significant pricing power, increased borrowing costs and departures of key company leaders. Potential catalysts for the share price include continued strength in the U.S. auto cycle, growth in China staying robust, benefiting GM through its established market position, favorable product and pricing mix, capital allocation aiding shareholder returns through measures such as share repurchases.

Chart courtesy of www.stockcharts.com

Ford is One of Five Electric Vehicle Income Stocks to Consider

BofA placed a $28 price objective on Ford, indicating a valuation toward the higher end of the company’s historical range of 3-6 times earnings. The investment firm wrote that Ford is strengthening its core business pillars to fund its future growth.

Risks to Ford include a downturn in U.S. auto sales, a sharp and sustained rise in input costs, disruption in the supply base, significant increase in gas prices, any market share losses, unwillingness of dealers to accept inventory risk, suppliers wielding pricing power, increased borrowing costs and incremental execution risk. Potential catalysts include continued strength in U.S. auto cycle, growth in China remains robust that Ford is pursuing with product launches, favorable produce and pricing mix and using stock buybacks and other methods to return capital to shareholders.

Chart courtesy of www.stockcharts.com

“Ford’s EV sales increased 120% over the 12 months ending October 2022,” Carlson said. “Ford introduced its electric version of the popular F-150 pickup truck only in May but has sold more than 11,000 electric pickup trucks so far in 2022.”

Ford’s F-150 Is Among Keys to Its Place in Five Electric Vehicle Income Stocks to Consider

Ford’s F-150 Lightning ranks as America’s best-selling electric truck by amassing 2,436 in sales during 2022 to mark its best monthly sales performance since first rolling off assembly lines this year. The company’s electric vehicle momentum continued in October 2022 when EV sales across its product lineup zoomed 120% since the same month last year.
The stock has fallen 28.50% for far this year through the close of trading on Friday, Nov. 14, but “looks compelling” at the reduced price, said Michelle Connell, a former portfolio manager who now serves as president of Dallas-based Portia Capital Management. A key reason is that Ford reinstated its dividend October hat currently offers a yield of 4.2%.

Plus, Ford is the second-largest seller of EV vehicles in United States, trailing only Tesla. In addition, Ford and GM are looking at investing in a South Korea EV battery manufacturer: Posco Chemical.

Michelle Connell, CEO, Portia Capital Management

Despite Ford ‘s October sales down 10% year-over-year, the company is considered to have one of the strongest brand loyalties of any U.S. vehicle manufacturer, Connell continued. If the Federal Reserve is at the tail end of its rate-heightening cycle, sales of Ford vehicles could stabilize, she added.

During past economic recessions, sales of Ford vehicles remained stronger compared to their U.S. competition, Connell commented. Ford’s share price decline so far this year has led some observers to consider the stock cheap, she added.

Ford’s price-to-earnings (P/E) ratio is only 6.5. The company’s price to sales ratio is .39.

The estimated 12-month upside for the stock is 20-25%, Connell counseled.

“I would suggest dollar cost-averaging for purchases of Ford shares,” Connell said. “The company has continued to have supply concerns – specifically for computer chips. There could be future weakness due to new announcements regarding this issue.”

Toyota Joins Pack of Five Electric Vehicle Income Stocks to Consider

Toyota joined with other Japanese companies and their government this month to form a new company named Rapidus to develop and manufacture computer chips, as well as advance the cultivation of human resources in the semiconductor industry in country. The main goal of Rapidus appears to be alleviating a global shortage of the precious computer chip technology to produce sub-2-nanometer semiconductors by the late 2020s.

Japan companies only are producing much bigger chips of 40 nanometers. The smaller and more capable the computer chips, the better.

Other big Japanese companies involved in helping to fund the launch of Rapidus include Sony Group Corp., SoftBank Corp. and Nippon Telegraph and Telephone Corp., as well as semiconductor maker Kioxia Corp., auto parts supplier Denso Corp., electronics maker NEC Corp. and MUFG Bank.

Chart courtesy of www.stockcharts.com

Ferrari Fits in With Five Electric Vehicle Income Stocks to Consider

Ferrari received a $285 price objective from BofA, offering a slight premium to RACE’s current trading level due to ongoing volume, sales and earnings growth. This valuation is also supported by a discounted cash flow (DCF) analysis, BofA wrote in a recent research note. The multiples used for BofA’s valuation are a premium to the current trading range of a number of luxury companies in RACE’s peer group, but warranted, given Ferrari’s outsized growth opportunity, according to the investment firm.

Risks include devaluation of the brand due to overproduction or licensing expansion, any perceived vehicle quality or performance shortcomings, impairment of Ferrari’s Formula 1 reputation or perceived racing pedigree, F-1 losses persist, deterioration in related businesses and intensifying competition in the luxury vehicle market, BofA wrote. Further risks are dependence on certain large volume suppliers, significant rise in raw material costs and significant voting power and control attributable to Piero Ferrari & Exor S.p.A.

Possible catalysts include modest volume expansion, an upward bias on pricing, growth in related businesses, gradual brand and licensing extension, moderation of F-1 losses, execution and cost efficiency realization, as well as management preserving the company’s luxury culture, according to BofA.

Chart courtesy of www.stockcharts.com

“In the near term, I expect the legacy auto makers’ stocks to do poorly because of slower economic growth and rising interest rates,” Carlson said. “But they’re already down significantly in 2022 and will have strong returns once the economy turns up.”

Bivalent COVID-19 Vaccine Offers Heightened Protection Against New Variant

A new bivalent COVID-19 booster in the United States offers protection against the omicron BA.5 variant, now the predominant strain of the virus. I received the new booster on Oct. 16 after it became available at pharmacies near my house.

However, there remain 200-plus million Americans who are eligible but have not yet availed themselves of the opportunity. New cases and deaths can hurt businesses such as Tesla, Mercedes-Benz, General Motors, Ford, Toyota and Ferrari, so availability of a bivalent booster to enhance the vaccine’s efficacy could help both public health and the economy.

Cases in the country totaled 97,990,681 and deaths reached 1,074,524, as of Nov. 11. America has the dubious distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,609,120, as of Nov. 11, according to Johns Hopkins. Global COVID-19 cases reached 634,710,643.

Roughly 80.4% of the U.S. population, or 267,032,055, have received at least one dose of a COVID-19 vaccine, as of Nov. 9, the CDC reported. People who received the primary COVID-19 doses totaled 227,802,408, or 68.6%, of the U.S. population, according to the CDC. The United States also has given a bivalent COVID-19 booster to 30,295,463 people who are age 18 and up, accounting for 11.7% of the U.S. population in that age range. The latter total shows a gain of nearly 5 million in the past week.

Valuation is a Big Final Factor for Five Electric Vehicle Income Stocks to Consider

Valuation stands out as one of the most important fundamental factors that should be considered when making investment decisions about vehicle manufacturers, according to BofA. Given the “extreme volatility” in certain links of the automotive value chain, investors should beware that the stocks are sensitive to headlines and swings in expectations, especially in the short term.

For investors seeking income and the best value among EV stocks, legacy manufacturers deserve a close look. However, non-dividend-paying Tesla’s valuation has fallen in recent days and Musk’s sale of $4 billion in the company’s stock to help fund his $44 billion acquisition of Twitter (NYSE: TWTR) is one of the key reasons.

Russia’s protracted war against Ukraine and lingering recession risk after four consecutive 0.75% rate hikes by the Fed in June and July, as well as on Sept. 21 and Nov. 2, add uncertainty for investors. But the payment of dividends forces management teams to stay disciplined and offers potent potential to profit if inflation is curbed.

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

Six income investments offer ways to make big oil plays as OPEC+ countries choose to cut production to the lowest levels since the start of the COVID-19 pandemic.

The decision triggered an upward move in petroleum prices as Russia President’s Vladimir Putin proceeds with his military invasion of Ukraine by stepping up attacks on the neighboring nation’s power plants, residential areas and civilian population. The 23 oil-producing countries known as OPEC+, heavily swayed by Saudi Arabia and Russia, spurred criticism from President Joe Biden and other leaders in Washington who objected to increased energy prices and their related negative economic impact on consumers and businesses that depend on affordable oil.

Members of the oil-producing OPEC+ bloc defended their move by saying a weakening economy could depress oil demand. Even though the “easy money” for many of the “old energy,” oil-weighted stocks has been earned after a “generational recovery” began in 2020, BofA Global Research wrote in a recent research note that exceptions include the recognition of value through asset quality, growth in sustainable free cash flow or balance sheet rehabilitation.

Despite natural-gas-weighted exploration and production (E&P) oil companies offering the greatest absolute value opportunity in the U.S. energy industry, big oil stocks should benefit from future price increases. Recent intervention by OPEC+ may serve as an early signal of firming oil price support, BofA added.

Courtesy of www.stockrover.com; Learn about Stock Rover Research.

Economic Trends Show Inflation Weighing on Markets as Six Income Investments Offer Ways to Make Big Oil Plays

Interest rates are rising rapidly, with mortgage rates close to 7%, according to the Forecasts & Strategies investment newsletter led by Mark Skousen, a presidential fellow in economics at Chapman University. The 10-year Treasury rate is 4.24%, topping the 30-year rate of 4.15% and showing the start of a negative yield curve that is “bad news for the economy,” Skousen wrote in his latest edition.

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

“The Fed is famous for overdoing it, both when fighting recession by sending rates too low and fighting inflation by sending rates too high,” warned Skousen, who also leads the Five Star Trader advisory service that features both stock and option recommendations.

Six Income Investments Offer Ways to Make Big Oil Plays Amid Fed Policies

The U.S. central bank and its monetary policy are largely responsible for the boom-bust cycle in the economy and on Wall Street, Skousen cautioned. The latest employment report was especially robust, adding 263,000 jobs as the unemployment rate fell to a multi-decade low of 3.5%, he added.

“This labor report confirmed what I have been saying with my gross output (GO) statistic, arguing that the United States is not in a recession quite yet, but it’s moving in that direction,” wrote Skousen, a descendent of Benjamin Franklin.

The Fed is seeking to clamp down on high inflation that has topped 8% in the past year. Those who may have trusted the Fed’s previous view that price hikes were “transitory” should note that the U.S. money supply rose 40% during the pandemic. Plus, Social Security payments will rise 8.7% in January 2023, boosting the buying power of 70 million American retirees but exacerbating inflation.

Six Income Investments Offer Ways to Make Big Oil Plays Such as BofA’s Top Pick: ExxonMobil

After a bellwether quarter for both ExxonMobil (NYSE: XOM) and Chevron Corporation (NYSE: CVX), BofA expects the companies to reduce their risk exposure amid a macroeconomic backdrop that is supported by “legacy industry underinvestment.” BofA predicted that sustained OPEC+ intervention, led by Saudi Arabia, will support oil prices.

“With that said, we see the relative investment case for both CVX and XOM diverging — with CVX anchored on legacy capital discipline and portfolio oil leverage, but with momentum swinging behind XOM, as five years of counter-cyclical investment drives divergence in free cash flow,” BofA opined. “While we see greater value with XOM, both names continue to offer low-risk leverage to higher long-term oil prices.

The dominant weight in the S&P energy sector is 1.4% for XOM and 1.0% for CVX, respectively. With both stocks moving quickly towards zero net debt within the next year, based on BofA estimates, the investment firm adjusted its price objectives to $136 per share for ExxonMobil and to $190 per share for Chevron. Those estimates assume BofA commodity team’s projected price of $100 per barrel for Brent in 2023, and a long-term $80 per barrel base case by 2025. 

Chart courtesy of www.stockcharts.com

President Biden recently pledged that the federal government would buy crude oil for the U.S. Strategic Petroleum Reserve (SPR) near $70 a barrel. The move showed bullishness from a “price floor” standpoint, said Jim Woods, who leads the Bullseye Stock Trader advisory service. 

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

President Biden’s announcement gave oil traders a new reason to take long positions in the sector, Woods said. For income and share-price momentum, ExxonMobil is an Income Multiplier recommendation in his Intelligence Report investment newsletter.

Chevron Shines as Six Income Investments Offer Ways to Make Big Oil Plays

Both  ExxonMobil and Chevron have reset their balance sheets to step up cash returns, mainly through share buy backs, even though that practice was criticized by President Biden last week as he urged oil companies to reduce prices at the pump. At present, the absolute scale of buy backs is the same for both companies at $15 billion.

In light of their different market values, the per share impact for CVX is about 30% higher than for XOM, but does not reflect buyback capacity, according to BofA. Assuming both management teams maintain buy backs at the current pace, BofA estimates suggest CVX net debt will stabilize at $3-7 billion.

However, with greater cash flow growth from projects secured at the bottom of the cycle, BofA sees XOM’s net cash building to more than $30 billion by 2025 and topping $60 billion by 2030. This is exactly what happened to Chevron with a slowdown in organic spending in 2015 that led to an inflection in free cash flow and significant outperformance compared with ExxonMobil for most of 2016-19. 

Chart courtesy of www.stockcharts.com

ExxonMobil and Chevron Grow Free Cash Flow as Two of Six Income Investments Offering Ways to Make Big Oil Plays

The two stocks have moved together but with growth in free cash flow, which is defined as funds a company can safely invest or distribute to shareholders. The investment firm projects a pending acceleration in free cash flow underpinning an extended period of relative outperformance for XOM, which remains BofA’s top U.S. oil major idea.

In addition, BofA has laid out in multiple reports a view that the long-term oil outlook is resetting after a period of industry underinvestment that “pushed control of oil markets” back toward OPEC+. With sustained intervention, risks to what the market is prepared to discount across the broader oil sector will skew higher, BofA added.

Using the midpoint of the recent trading range for Brent as a benchmark for where Saudi Arabia seemingly intervened to support a price range of $80-$100 per barrel, BofA sees $90 Brent as an upside level that would point to a potential rise of more than 20% for CVX and 30%-plus for XOM.

Marathon Oil’s Acquisition Solidifies its Spot Among Six Income Investments Offering Ways to Make Big Oil Plays

Marathon Oil Corporation (NYSE: MRO) has benefited from a recent rally in the price of oil to become the top commodity recommendation in Skousen’s Five Star Trader advisory service. The company also is growing through acquisition as it announced on Nov. 2 that it entered into a definitive purchase agreement to acquire the Eagle Ford assets of Ensign Natural Resources for $3.0 billion in cash. Marathon Oil’s management announced that it expects the transaction to close by year-end 2022.

The acquisition strikes the right balance between “immediate cash flow accretion” and future development opportunity, said Lee Tillman, Marathon Oil’s chairman, president and chief executive officer. Specifically, it should drive a 17% increase to 2023 operating cash flow and a 15% bump to free cash flow, he added.

Also on Nov. 2, Marathon Oil reported third-quarter 2022 net income of $817 million, or $1.22 per diluted share, including the impact of certain items not typically represented in analysts’ earnings estimates.  The company’s adjusted net income during the third quarter hit $832 million, or $1.24 per diluted share. Its net operating cash flow was $1,556 million, or $1,440 million, before changes in working capital. Free cash flow totaled $1,126 million, or $1,031 million before changes in working capital.

Houston-based Marathon Oil is “dirt cheap,” currently selling for a price-to-earnings (P/E) ratio of 7.45, Skousen wrote. It has a price-to-earnings to growth ratio (PEG) of only 0.61. compared to the U.S. Oil and Gas industry’s 0.51, according to Zacks Research. Anything less than one is considered excellent, Skousen added.

A trailing 12-month (TTM) PEG ratio equals the P/E ratio divided by its growth for the past 12 months. The PEG ratio is aimed at giving an enhanced picture of a company’s prospects than just a P/E ratio alone.

Marathon Oil is up 20.69% since Skousen recommended the position in his Five Star Trader advisory service on Aug. 14. BoA Global Research wrote that risks to Marathon Oil shares include oil and gas prices, a possible correction in refining profit margins, significant delays to the company’s new upstream projects that are critical to its production targets, among other factors.

Chart courtesy of www.stockcharts.com

Shell Joins Six Income Investments Offering Ways to Make Big Oil Plays

Shell plc (NYSE: SHEL), a multinational oil and gas company headquartered in London, England, beat earnings estimates by 5% when reporting quarterly results on Oct. 27. The company’s earnings and production businesses were strong but its liquefied natural gas (LNG) operation, which involves trading, came in slightly weak, said Michelle Connell, who leads Portia Capital Management, of Dallas, Texas.

Connell pointed out a shareholder-noteworthy announcement of a 15% increase in Shell’s dividend that will begin in 2023. It marks a reversal from when the company cut its dividend in 2020 to clean up its liabilities, she added. While the dividend cut initially was viewed negatively, it gave the company room to expand its green energy business, Connell said.

Shell also announced it will begin a $4 billion share buyback. While this is not definitively a signal that the shares are cheap, it telegraphs that the company’s management does not consider the shares “too expensive” at this point, Connell continued. Shell is the world’s fourth-largest oil company in the world, following the largest three: Saudi Aramco, Exxon Mobil and Chevron. Of these four, Connell called Shell the “most environmentally friendly.”

Chart courtesy of www.stockcharts.com

Shell is targeting net-zero emissions by 2050, while Saudi Aramco, Exxon Mobil and Chevron are considered to be “very damaging” to the environment, Connell counseled. Plus, Shell will be building the largest green hydrogen plant in the European Union (EU), Connell added.

“Most oil stocks have appreciated so much this year that it’s difficult to buy them at a discount,” Connell said. “However, Shell is selling at a significant discount to Exxon and some of its competitors.”

For example, Shell’s current price-to-earnings (P/E) ratio is 4.87, while ExxonMobil’s current P/E is 9.07. The difference may stem from Shell’s perception by some investors as a pure European Union play, while ExxonMobil and Chevron are viewed as U.S. energy stocks, Connell said.

      

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

ConocoPhillips Emerges Upon Six Income Investments Offer Ways to Make Big Oil Plays

BofA’s price objective of $140 per share on ConocoPhillips (NYSAE: COP) assumes $80 Brent and $75 West Texas Intermediate (WTI) long-term prices. The investment firm also assume long-term Henry Hub natural gas at $4.25.

Potential risks to BofA’s price objective are an uncertain oil and gas price and margin environment, significant delays to new upstream projects critical to its production targets and challenges in capturing the price environment due to cost pressures such as operating expenses, capital expenditures and taxation. Outperformance could occur through increased oil prices and cuts to capital expenditures, BofA wrote.

Chart courtesy of www.stockcharts.com

Six Income Investments Offer Ways to Make Big Oil Plays Like XLE 

The largest holding in the Energy Select SPDR (XLE) exchange-traded fund is Exxon Mobil, said Bob Carlson, who leads the Retirement Watch investment newsletter. Carlson, who also serves as a pension fund chairman, added that energy stocks had a strong finish to 2021, and most of the factors that led to those gains have continued so far in 2022.

In addition, inflation is likely to remain high for much of this year and perhaps longer, Carlson continued. Energy stocks traditionally are a good inflation hedge, he added.

XLE is up 78.8 thus far in 2022, as of the close of trading on Nov. 3. Other than its top holding of ExxonMobil, accounting for 22.89% of the fund’s assets, Chevron ranked second, with 19.44%, Schlumberger NV (NYSE: SLB) was a distant third with 4.91% and ConocoPhillips finished fourth with a 4.44% share, as of Nov. 1.

Chart courtesy of www.stockcharts.com

Bivalent COVID-19 Booster Vaccines Could Aid Oil Demand

A new bivalent COVID-19 booster in the United States offers protection against the omicron BA.5 variant, now the predominant strain of the virus. As a resident of Maryland, I arranged to receive the new booster after the state’s health department called me and reported the new booster’s availability at pharmacies near my house.

I received the booster on Oct. 16,  but there still are an additional 200-plus million Americans, who are eligible, but have not yet gained the extra protection. New cases and deaths can hurt supply and demand for oil stocks, so availability of a bivalent booster to enhance the vaccine’s efficacy could help public health and the economy.

Cases in the country totaled 97,691,083 and deaths reached 1,070,138, as of Nov. 4. America has the dubious distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,597,743, as of Nov. 4, according to Johns Hopkins. Global COVID-19 cases reached 631,804,762.

Roughly 80.2% of the U.S. population, or 266,401,911, have received at least one dose of a COVID-19 vaccine, as of Nov. 2, the CDC reported. People who received the primary COVID-19 doses totaled 227,377,753, or 68.5%, of the U.S. population, according to the CDC. The United States also has given a bivalent COVID-19 booster vaccine to 25,483,818 people who are age 18 and up, accounting for 9.9% of the U.S. population in that age range.

The six income investments offering ways to make big oil plays, as OPEC+ nations cut supply, appear poised for free cash flow growth, even though President Biden blasted their share buybacks. Despite high inflation, Russia’s stepped up shelling against Ukraine and rising recession risk after 0.75% rate hikes by the Fed in June, July, Sept. 21 and Nov. 2, the six income investments still offer ways to make big oil plays

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

Four dividend-paying oil stocks to purchase as OPEC+ trims production feature companies that have been on the rise lately.

The four dividend-paying oil stocks to purchase as OPEC+ trims production to the lowest amounts since the start of the COVID-19 pandemic have climbed along with petroleum prices as Russia President’s Vladimir Putin proceeds with his military invasion of Ukraine and attacks on his neighboring nation’s power plants, residential areas and civilians. Led by Saudi Arabia and Russia, the 23 oil-producing countries known as OPEC+ sparked criticism from President Joe Biden and other leaders in Washington who expressed worries about rising energy prices and their economic impact.

However, members of the oil-producing bloc defended their decision by warning a weakening economy could depress oil demand. Even though the “easy money” for many of the “old energy,” oil-weighted stocks has been made three years after a “generational recovery” began in 2020, BofA Global Research wrote in a recent research note that exceptions include the recognition of value through asset quality, growth in sustainable free cash flow or balance sheet rehabilitation.

Despite natural gas-weighted exploration and production (E&P) companies offering the greatest absolute value opportunity in the U.S. energy industry, large-cap oil stocks should benefit from future price increases. The recent intervention by OPEC+ may be an early sign of firm oil price support, BofA added.

Macro-Economic Trends Show Inflation Weighing on Markets

Interest rates are rising rapidly, with mortgage rates close to 7%, according to the Forecasts & Strategies investment newsletter led by Mark Skousen, a presidential fellow in economics at Chapman University. The 10-year Treasury rate is 4.24%, topping the 30-year rate of 4.15% and showing the beginning of a negative yield curve that is “bad news for the economy,” Skousen wrote in his latest edition.

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

“The Fed is famous for overdoing it, both when fighting recession by sending rates too low and fighting inflation by sending rates too high,” cautioned Skousen, who also heads the Five Star Trader advisory service that features both stock and option recommendations.

The U.S. central bank is largely responsible for the boom-bust cycle in the economy and on Wall Street, Skousen warned. The latest employment report was especially robust, adding 263,000 jobs as the unemployment rate slid to a multi-decade low of 3.5%, he added.

“This labor report confirmed what I have been saying with my gross output (GO) statistic, arguing that the United States is not in a recession quite yet, but it’s moving in that direction,” Skousen wrote.

The Fed is seeking to clamp down on high inflation that has topped 8% in the past year. Those who initially may have been inclined to trust the Fed’s previous view that price hikes were “transitory” should note that the U.S. money supply rose 40% during the pandemic. Plus, Social Security payments will rise 8.7% in January 2023, boosting the buying power of 70 million American retirees but exacerbating inflation.

Marathon Oil Makes List of Four Dividend-paying Oil Stocks to Purchase as OPEC+ Trims Production

Marathon Oil Corporation (NYSE: MRO) has benefited from the recent rally in the price of oil to become the top commodity recommendation in Skousen’s Five Star Trader advisory service. In early November, dividend-paying Marathon Oil is expected to report annual earnings of $4.75 per share, up more than 200%, on revenues of $8.3 billion, climbing 52%, Skousen wrote to his subscribers.

Courtesy of www.stockrover.com; Learn about Stock Rover Research.

Houston-based Marathon Oil is “dirt cheap,” selling for a price-to-earnings (P/E) ratio of 7.2, Skousen wrote. It has a price-to-earnings to growth ratio (PEG) of only 0.61. compared to the U.S. Oil and Gas industry’s 0.51, according to Zack’s Research. Anything less than one is considered excellent, Skousen added.

A trailing 12-month (TTM) PEG ratio equals the P/E ratio divided by its growth for the past 12 months. The PEG ratio is aimed at giving a more complete picture of a company’s prospects than just a P/E ratio alone.

Marathon Oil is up 15.78% since Skousen recommended the position in his Five Star Trader advisory service on Aug. 14. BoA Global Research wrote that risks to Marathon Oil shares include oil and gas prices, a possible correction in refining profit margins, significant delays to the company’s new upstream projects that are critical to its production targets, as well as other factors.

Chart courtesy of www.stockcharts.com

Devon Energy Forges Ways into Four Dividend-paying Oil Stocks to Purchase as OPEC+ Trims Production

President Biden put a little bullish fuel into the energy sector with comments that have been called the president’s “put.” His pledge that the federal government would buy crude oil for the U.S. Strategic Petroleum Reserve (SPR) near $70 a barrel was bullish from a “price floor” standpoint, according to Jim Woods, who leads the Bullseye Stock Trader advisory service.

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

President Biden’s announcement gave oil traders a new reason to take long positions in the sector, Woods said. From his momentum-oriented analysis, one of the best stocks in the energy space is Devon Energy Corp. (NYSE: DVN), a large independent exploration and production company headquartered in Oklahoma City, Oklahoma.

The company’s asset base is spread throughout onshore North America and includes exposure to the Delaware, Eagle Ford, Powder River Basin and Bakken sites. At year-end 2021, Devon’s proved reserves totaled 1.6 billion barrels of oil equivalent. Furthermore, net production that year was 572 thousand boe per day, of which oil and natural gas liquids made up 74% of production, with natural gas accounting for the remainder, Woods wrote.

Chart courtesy of www.stockcharts.com

“Devon is a stock displaying all the qualities I look for in a Bullseye Stock Trader play,” Woods wrote to his subscribers. “It’s got fantastic earnings growth in the top quintile compared to all other stocks. Last quarter, the company grew earnings per share by 332%. It’s also near the top of the list in terms of relative price strength — its 79% gain over the past 52 weeks puts it in the top 2% of all stocks on a relative strength basis. The company also is one of the top companies in the strongest industry on the market right now.”

Although BofA’s last update on Devon rated it neutral, Bryan Perry, chief of the Cash Machine investment newsletter, has been recommending the high-income stock profitably since May.

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

APA Corporation Added to Four Dividend-paying Oil Stocks to Purchase as OPEC+ Trims Production

BofA has a buy recommendation and a $65 price objective on Houston-based APA Corporation (NASDAQ: APA), an exploration and production company for oil and natural gas in the United States, Egypt and the United Kingdom, as well as offshore Suriname and in the Dominican Republic. Potential ways to outperform the BofA price target for APA include 1) higher commodity prices, 2) exploration success in Suriname and 3) exploration inroads and increased drilling activity in Egypt.

On the other hand, those potential strengths may not be manifested, BofA acknowledged in a recent research report. Risks to achieving the BofA price objective are 1) lower commodity prices, 2) Egyptian political uncertainty and 3) exploration challenges in Suriname.

APA scheduled a conference call to discuss its third-quarter 2022 results at 11 a.m. Eastern time, Thursday, Nov. 3. Earlier in October, the company gave guidance that it expected to be above the high end of the third-quarter range it provided in August of 212 Mboe per day.

International volumes are expected to be below the low end of the third-quarter guidance range of 171 Mboe per day. With respect to international volumes, the shortfall is related to North Sea production, which was approximately eight Mboe/d below guidance due to significant unplanned downtime in August and September, the company reported.

Chart courtesy of www.stockcharts.com

Hess Fuels Its Way into Four Dividend-paying Oil Stocks to Purchase as OPEC+ Trims Production

The fourth entrant among the dividend-paying exploration and production oil stocks to purchase is BofA recommendation Hess Corp. (NYSE: HES). The New-York-based company’s share price has begun to rise again.

Its risks are similar to those of Exxon Mobil (NYSE: XOM), except that the news flow around HES’ exploratory and appraisal drilling activities could hurt the stock.  BofA’s outlook for the stock could be fueled by rising oil and gas prices.

Hess reported 3Q22 results on Wednesday, Oct 26, with net income of $515 million, or $1.67 per common share, compared with net income of just $115 million, or $0.37 per common share, in the third quarter of 2021. The company’s free cash flow outlook is the only growth story among the U.S. E&Ps, BofA wrote in a recent research note. While the near-term multiple on Hess is high versus its peers, it is not high enough, according to BofA. The investment firm has a price objective on the stock of $175.

Chart courtesy of www.stockcharts.com

Bivalent COVID-19 Booster Vaccines Could Help Sustain Oil Demand

A new bivalent COVID-19 booster in the United States gives increased protection against the omicron BA.5 variant, now the predominant strain of the virus. As a resident of Maryland, I sprang into action after receiving an Oct. 11 phone call from the state’s health department advising me of the booster’s availability at pharmacies near my house. I arranged to receive the vaccine on Oct. 16. Nonetheless, there are still an additional 200-plus million Americans, who are eligible, but have not yet gained the protection offered by the latest booster.

COVID cases and deaths can hurt supply and demand for oil stocks, so availability of a new booster to enhance the vaccine’s efficacy could help fend off the virus, if people receive the vaccine. Cases in the country totaled 97,423,583, as deaths hit 1,070,138, as of Oct. 28. America has amassed the most COVID-19 cases and deaths of any nation.

Worldwide COVID-19 deaths totaled 6,587,818, as of Oct. 28, according to Johns Hopkins. Global COVID-19 cases reached 629,740,541.

Roughly 80.1% of the U.S. population, or 266,031,472, have received at least one dose of a COVID-19 vaccine, as of Oct. 27, the CDC reported. People with at least the primary doses total 226,933,827, or 68.4%, of the U.S. population, according to the CDC. The United States also has given a bivalent COVID-19 booster vaccine to 22,197,891 people who are age 18 and up, accounting for 8.6% of the U.S. population in that age range.

The four dividend-paying oil stocks to purchase are ascending after the OPEC+ countries chose to trim oil production. Despite high inflation, Russia’s continued attacks in Ukraine and rising recession risk after 0.75% rate hikes by the Fed in June, July and on Sept. 21, the four dividend-paying oil stocks to purchase should climb further amid geopolitical uncertainty and the prospect of further rate increases in the months ahead.

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

Three top dividend-paying exchange-traded funds highlighted by retirement finance expert Bob Carlson may offer investors key advantages.

Diversification, profit and security are important factors in an investor’s decision making, especially in a market that appears to be tanking. Investors can find the answers they need in one alternative: dividend-paying exchange-traded funds (ETFs).

Such ETFs are a great option for investors in this uncertain economy. They come with lower expense ratios and fewer commissions to brokers than buying individual stocks, and their price moves throughout the day as their shares are traded to add to their liquidity.

Moreover, because there are multiple assets within an ETF, they are popular for investors looking to diversify. ETFs can hold various types of investments, including stocks, commodities, bonds or a mixture of them.

The following ETFs offer a generous dividend of above 6%, which can be reinvested or saved, a moderate expense ratio and sound diversification: JPMorgan Diversified Return International Equity ETF (JPIN), Cambria Emerging Shareholder Yield (EYLD) and Cambria Trinity (TRTY).

Two of the three featured ETFs have been recommended by retirement-finance expert Bob Carlson, the editor of Retirement Watch, which can be subscribed to on his website Retirementwatch.com.

Further, his Spotlight Series is an accumulation of special reports focusing on different and important aspects of retirement, as well as worksheets for retirees to use in their own planning.

Carlson has written several books, including his latest, “The New Rules of Retirement.” Further, he has served on the Board of Trustees of the Fairfax County Employees’ Retirement System since 1992 and been chairman since 1995.

Jumping into the Three Top Dividend-paying ETFs with JPMorgan Diversified Return International Equity ETF (JPIN)

JPMorgan Diversified Return International Equity ETF (JPIN) is a leader in the dividend-paying ETF category, with a 6.70% dividend yield, set to be paid on Dec. 20, and a low expense ratio of 0.37%.

Founded in 2014, JPIN has 479 holdings and seeks exposure to market segments known for their historical strength, including finance, consumer non-durables and utilities, while diversifying risk across multiple regions and sectors.

JPIN’s risk diversification method works by filtering stocks and funds for value, momentum and quality factors. After assessing each security, they are assigned to one of 40 different allotments within the ETF.

Each allotment is weighted to contribute equal risk to the fund based on historic volatility, and the holdings are equally weighted within each of the 40 allotments. JPIN has $715.61 million in net assets and $647.79 million in assets under management.

As is visible in the chart below, the ETF had a steady decline year to date; however, it is beginning a climb which may entice investors looking to get in at a lower price.

Courtesy of Stockcharts.com

Coming in Second of the Three Top Dividend-paying ETFs with Cambria Emerging Shareholder Yield (EYLD)

Launched in 2016, Cambria Emerging Shareholder Yield (EYLD) is a Bob Carlson recommendation. The ETF has a sturdy dividend yield of 6.31% and a fair expense ratio of 0.64%.

Carlson explained that “the fund’s parent company, Cambria, ranks dividend-paying stocks by the ability of their companies to continue paying or increase their dividends.” He added that the ranking uses a range of factors instead of the one or two used by most dividend-quality assessments. The fund generally buys the top 100 emerging market companies in the ranking.

The factors mentioned by Carlson are both fundamental and technical. The fundamental metrics include price to cash flow, price to book value and enterprise value to earnings before interest, taxes, depreciation and amortization (EBITDA). Other factors include the momentum and trend technical factors.

Once the ranking process is over, the top 100 stocks that receive the highest rankings in all the above categories are then selected and given equal weight within the final portfolio.

EYLD has net assets of $91.47 million and assets under management of $95.94 million. The fund is down 22.93% over 12 months and 8.58% in the last four weeks.

Much like JPIN, EYLD has seen a downward trend, but is beginning a recovery, which a great place for interested investors to get in at a discounted price.

Courtesy of Stockcharts.com

Wrapping up the Three Top Dividend-paying ETFs with Cambria Trinity ETF (TRTY)

Last, but certainly not least, is Carlson’s second recommendation: Cambria Trinity ETF (TRTY).

TRTY is a tactical allocation fund with a 6.12% yield. But as Carlson explained, the yield price can change over time as the fund’s allocation to different assets changes. Though the yield may vary, its 0.50% expense ratio will not.

TRTY varies from the other two picks as it is set up in a fund-of-funds style. Simply, this ETF’s portfolio is composed of other investment funds rather than stocks, bonds or other securities.

Not only does the fund seek exposure to a wide variety of asset types and investments, but it also includes a broad geographic exposure. TRTY’s active manager looks for opportunities with absolute positive returns and lower risk than global market equities.

While there is not much detail about the ETF’s inner workings available to the average investor, retirement-finance expert Carlson was able to provide some extra insight on what the managers look for when choosing holdings.

“The managers look at three factors: value, momentum and market trends to allocate the fund among U.S. stocks, foreign stocks, bonds, real assets, cash and other investments,” he explained.

TRTY has $56.18 million in net assets and $98.29 in assets under management. As seems to be the trend in the market these days, TRTY is down 10.05% in the last four weeks but is up 22.13% over 12 months.

The ETF may have taken a dip, but it is apparent that it is a strong enough fund to rebound. It has seen sharp dips, but each one has been followed by a recovery.

Courtesy of Stockcharts.com

Conclusion: Three Top Dividend-paying Exchange-traded Funds of a Retirement Expert

Ultimately, these three top dividend-paying exchange-traded funds highlighted by retirement finance expert Bob Carlson may offer investors several advantages.

ETFs are a great option for investors in this economy, as they come with lower expense ratios and fewer commissions paid to brokers than buying individual stocks. Also, their price moves throughout the day as their shares are traded to add to their liquidity.

Moreover, as has been highlighted above, they are popular for investors looking to diversify. ETFs can hold various types of investments, including stocks, commodities, bonds or a mixture of assets.

So, while JPMorgan Diversified Return International Equity ETF (JPIN), Cambria Emerging Shareholder Yield (EYLD) and Cambria Trinity (TRTY) all may have recently seen a downturn, it is evident that they are once again heading upward. This is a great time for interested investors to get in at reduced prices.

For more of Bob Carlson’s insights, market picks and retirement finance information, it can all be found on his website, Retirementwatch.com. He offers monthly newsletters, weekly e-letters and paid special reports, which can also be accessed as part of his Spotlight Series.

Emily Mirabelli is an editorial staffer with Eagle Financial Publications who writes for www.stockinvestor.com.

 

Three innovative industrial income stocks to purchase despite economic and geopolitical risks are tapping technological advances to thrust themselves toward enhanced success.

The three innovative industrial stocks to purchase feature a digital textile printer and a pair of agricultural machinery manufacturers. All three of those innovative industrial income stocks to purchase are rated by Chicago-based investment firm William Blair & Co. to “outperform” the market.

Investors need to beware that bearish sentiment has been big, laying the groundwork for an oversold rally where the huge price swings for the indexes may signal an inflection point, said seasoned Wall Street trader Bryan Perry, who leads the high income-oriented Cash Machine investment newsletter. Uncertainty has emerged from Ukraine, European fiscal policy, China’s ambitious rhetoric about Taiwan, stress in the debt market for developing nations, a strong dollar and persistent inflationary pressures propelling Fed rate hikes, he added.

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

Three Innovative Industrial Income Stocks to Purchase Despite Rising Risks

“Earnings expectations have been dramatically lowered, setting the table for an earnings season rally, but one that will likely be limited in upside as the Nov. 2 Federal Open Market Committee (FOMC) meeting nears,” Perry wrote to his subscribers in an Oct. 18 update. “The latest inflation data was nothing short of hot and will not help market bulls hoping for any inklings the Fed will dial back its rate hikes to curb inflation.”

High inflation, further Fed rate hikes, risk of a recession in America and Russia’s sustained invasion of Ukraine that began Feb. 24 are sowing seeds of uncertainty that are worsened by economic woes in Europe and Asia, wrote Mark Skousen, a presidential fellow in economics at Chapman University, in his latest monthly Forecasts & Strategies investment newsletter. The biggest drag on the market is the Federal Reserve’s plan to reduce economic growth, demand and inflation, Skousen added.

Skousen, who analyzes of inflation, interest rates and monetary policy trends to recommend stocks and options in his weekly Home Run Trader advisory service, said data show a slowing U.S. economy, but no recession so far.

“Even though real gross domestic product (GDP) is slightly negative, second-quarter gross output (GO) — which measures total spending in the economy — grew by 1.7% in real terms,” Skousen stated. “GO includes the supply chain, which is still catching up from the lockdown-induced shortages.”

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

Three Innovative Industrial Income Stocks to Purchase Amid Russia’s Aggression

Russia’s shelling of hospitalsschoolsresidential areas, churchesnuclear power plantsoil refineries, a children’s playground, a park, a German consulate, a business center and a theater used as a shelter have targeted Ukrainian civilians who also have been brutally rapedtortured and executed. Those heinous acts in violation of international caused many nations to place continuing sanctions on Russia that included cutting back on buying grain, oil and natural gas exports.

Investors who want diversity in the industrial sector can consider an exchange-traded fund (ETF), said Bob Carlson, a pension fund manager who also leads the Retirement Watch investment newsletter.

Bob Carlson, leader of Retirement Watch, talks to Paul Dykewicz.

Carlson said he is monitoring Robo Global Robotics and Automation (ROBO), an ETF that seeks to follow an index focused on robotics-related or automation-oriented companies. However, the fund has fallen 39.31% so far in 2022 as technology and industrial companies slid in value.

Both sectors performed poorly as interest rates rose in 2022, Carlson commented. ROBO may rebound but Carlson has refrained from adding it to his newsletter’s recommended holdings.

Kornit Digital Digs in as One of Three Innovative Industrial Income Stocks to Purchase Despite Global Risks

Kornit Digital Ltd. (NASDAQ: KRNT), a Rosh HaAyin, Israel-based provider of sustainable, on-demand, digital fashion and textile production technologies, seeks to empower manufacturers of apparel, accessories and home goods to access “just in time” production. By eliminating preparation time to maximize manufacturing efficiency, Kornit’s systems create new opportunities for revenue to ensure profitability from large and small orders, shrink carbon footprint and mitigate vulnerability to sudden shifts in demand.

Print operations are designed to allocate their human and capital resources more effectively, grow their e-commerce business, repatriate operations and even more, according to Chicago-based investment firm William Blair & Co. Kornit Digital aims to give textile decorators the efficiency and agility they demand, while offering consumers the responsible production practices and self-expression they seek. The company aims to become a lynchpin for capitalizing on the digital supply chain by letting print businesses eliminate the guesswork from demand fulfillment to attain long-term success.

William Blair recently hosted Kornit Chief Executive Officer Ronen Samuel and Global Head of Investor Relations Andrew Backman at the investment firm’s conference on industrial innovation. Despite near-term risks, multiple secular tailwinds should boost Kornit and its transition to digital textile printing.

Three Innovative Industrial Income Stocks to Purchase Include Fashion Manufacturer

“Historically, fashion brands project what consumers will want to wear 12 to 18 months ahead of time and produce large volumes of clothing for the upcoming seasons,” William Blair wrote. “Consumers today want to be unique, which requires brands to produce lower volume runs more often.”

Plus, the textile industry typically wastes about 30% of the inventory produced, which is roughly 144 trillion liters of water squandered annually, according to William Blair. Kornit’s machines and inks are developed to operate low volume runs economically, compared to traditional screen printing.

On the sustainability side, Kornit’s Atlas MAX system uses up to 94% less water, 67% less energy and emits 82% less greenhouse gas emissions compared to screen printing, William Blair wrote. KornitX, the company’s marketplace solution, enables on-demand production closer to the point of need, allowing brands and fulfillers to obtain product from their orders quickly to compete with e-commerce companies like Amazon (AMZN) on delivery times.

In addition, KornitX continues to gain traction with customers and allows the expansion of their businesses without the need for large capital investments. KornitX currently operates on a revenue sharing model.

Chart courtesy of www.StockCharts.com.

Former Money Manager Names a Favorite Innovative Industrial Income Investment to Purchase

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

AGCO Corporation (NYSE: AGCO), an agricultural machinery manufacturer in Duluth, Georgia, is delivering a 20% increase in both farmers’ productivity and profitability, according to William Blair & Co. In addition, AGCO’s precision products generally offer a two-year payback and, in some cases, a one-year payback, the investment firm indicated.

Some of AGCO’s innovation efforts focus on real-time “sense and react” in the field across a full crop cycle, the investment firm wrote. The use of “edge processing” and “advanced sensors” help maximize outcomes by enhancing productivity and sustainability for its customers, William Blair added.

AGCO intends for Fendt to be its premium brand in both North and South America, requiring a strong precision agricultural portfolio, a diverse array of solutions that work across the entire crop cycle and robust distribution and after-sales support, wrote William Blair. Fendt sales are expected to be $700 million in 2022, and then more than double to $1.5 billion in three to five years, with a further goal to achieve 20% market share in North America.

Chart courtesy of www.stockcharts.com

Three Innovative Industrial Income Stocks to Purchase Include AGCO

The company brings its newest equipment to the market, while the aftersales approach adds the latest technology to an existing piece of AGCO equipment. As for retrofitting, the company sells advanced, agronomic solutions to farmers who want to update existing pieces of equipment with modern technology economically.

Most analysts have AGCO rated to achieve upside of 30-35% in 12-18 months, former money manager Michelle Connell counseled. When AGCO reported results in July, the company beat its revenue and earnings per share estimates. However, it left its estimates for the second half of 2022 at the same levels, continued Connell, CEO of Dallas-based Portia Capital Management.

Plus, the company continues to experience strong demand, with a desirable order book into 2023, Connell said. Typically, at this time of year, the company does not have such a strong order base, she added.

Unless some external factors come into play, AGCO should experience strong financials for the end of the year, as well as next year, Connell counseled. Possible risks include economic exposure to the European Union (EU), as well as China, along with supply chain uncertainties. In addition, manufacturing in Europe could be affected by an upcoming energy crisis for the region this winter. But AGCO is expected to have enough alternative energy sources in the EU to remain largely protected. Finally, the company’s stock performance has been tied to economic cycles in the past.

AGCO benefits as the population of the world increases, since it needs to grow quality food amid declining acreage. Companies that manufacture equipment that maximize a farm’s acreage will continue to experience high demand, Connell concluded.

Deere Jumps into Three Innovative Industrial Income Stocks to Purchase Despite Dangers

Deere & Co. (NYSE: DE), an innovative agricultural machinery company headquartered Moline, Illinois, has done an “excellent job” supporting its stock price, Connell said. Deere also has used technology with its machinery to maximize crop yield, she added.

With an eye toward the future, Deere signed a definitive agreement to acquire majority ownership last December in Kreisel Electric, Inc., a battery technology provider in Rainbach im Mühlkreis, Austria. Kreisel develops high-density, high-durability electric battery modules and packs. Plus, Kreisel developed a charging infrastructure platform that uses patented battery technology.

Since 2014, Kreisel has developed immersion-cooled electric battery modules and packs for high-performance and off-highway applications. Kreisel has a differentiated battery technology and battery-buffered charging infrastructure to serve a global customer base across multiple end markets, including commercial vehicles, off-highway vehicles, marine, e-motorsports and other high-performance applications.

Deere management projects demand growing for batteries as a sole- or hybrid-propulsion system for off-highway vehicles. Products such as turf equipment, compact utility tractors, small tractors, compact construction and road building equipment could rely solely on batteries as a main power source. Deere keeps investing in and developing technologies to innovate, deliver value to customers and foster a future with zero emissions propulsion systems.

“Deere recently announced that it will re-shore a facility from China to Louisiana,” Connell said. “An existing facility in Louisiana will be expanded in terms of space and personnel. As this area of the country is totally dependent on the declining production of oil, this is very timely and needed.”

Chart courtesy of www.StockCharts.com.

Bivalent COVID-19 Booster Vaccines Could Boost Businesses

A new bivalent COVID-19 booster is available in the United States that gives increased protection against the omicron BA.5 variant, which has become the predominant strain of the virus. As a resident of Maryland, I received a phone call from the state’s health department on Tuesday, Oct. 11, advising me of the booster’s availability at pharmacies near my home. I acted quickly to receive the vaccine on Oct. 16.

Even though COVID cases and deaths can hurt supply and demand for innovative industrial stocks, availability of a new booster to enhance the vaccine’s efficacy should help business. Cases in the country totaled 97,165,873, as of Oct. 21, while deaths jumped to 1,067,545, according to Johns Hopkins University. America has amassed the most COVID-19 deaths and cases.

Worldwide COVID-19 deaths totaled 6,577,088, as of Oct. 21, according to Johns Hopkins. Global COVID-19 cases reached 627,187,937.

Roughly 80% of the U.S. population, or 265,591,330, have received at least one dose of a COVID-19 vaccine, as of Oct. 19, the CDC reported. People with at least the primary doses total 226,594,560, or 68.2%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to almost 111.4 million people.

The three innovative industrial income stocks to purchase are selling at discounted prices after the market’s 2022 drop. Despite high inflation, Russia’s war in Ukraine and rising recession risk after 0.75% rate hikes by the Fed in June, July and Sept. 21, the three innovative industrial income stocks to purchase show potent potential.

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

Four environmentally friendly income industrial investments to purchase amid peril from economic ills and Russia’s stepped-up attacks against Ukraine are implementing innovations to enhance their outlooks.

The four environmentally friendly industrial income investments to buy are engaged in missions such as increasing agricultural productivity, manufacturing electric-powered farm equipment and recycling fibers for packaging. With rising social consciousness for the climate, these income investments are aiming for ecological staying power.

Increased inflation, Fed rate hikes, recession risk, shelling of civilians in Ukraine by Russia’s military add to uncertainty, but none of these threats will stop growing environmental awareness. Russian’s onslaught against Ukraine is disrupting the world economy, as Europe and Asia are mired in recession, wrote Mark Skousen, a presidential fellow in economics at Chapman University, in his monthly Forecasts & Strategies investment newsletter.

“The primary negative, of course, is that the Federal Reserve is determined to slow the economy, reduce demand, and thereby bring down inflation,” Skousen opined.

Four Environmentally Friendly Industrial Income Investments to Purchase Amid Rate Hikes

Too much quantitative tightening, too fast, may lead the United States into a recession, counseled Skousen, who uses his analysis of inflation, interest rates and monetary policy in recommending stocks and options to buy in his weekly Home Run Trader advisory service. Economic statistics show a slowdown in the economy, but not recession, he added.

“Even though real gross domestic product (GDP) is slightly negative, second-quarter gross output (GO) — which measures total spending in the economy — grew by 1.7% in real terms,” Skousen stated. “GO includes the supply chain, which is still catching up from the lockdown-induced shortages.”

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

Four Environmentally Friendly Industrial Income Investments to Purchase Despite Putin’s Pummeling

A big question is whether Russia’s President Vladimir Putin will persist in attacking Ukraine and its civilians, in addition to military and industrial targets. On Monday, Oct. 10, Putin-led forces unleashed terror on more than 20 cities across Ukraine with at least 84 cruise missiles and 24 drones, marking one of Russia’s largest assaults against civilians since starting what its leaders call a “special military operation.” The strikes killed at least 14 civilians and wounded dozens of others.

Russia’s shelling of hospitalsschoolsresidential areas, churchesnuclear power plantsoil refineries, a children’s playground, a park, a German consulate, a business center and a theater used as a shelter have been combined with brutal rapestorture and outright executions of Ukrainian civilians. Those acts caused many nations to place sanctions on Russia that included scaling back or severing ties with the aggressor as a producer of grain, oil and natural gas.

Investors can consider an exchange-traded fund that offers broad exposure to companies providing industrial automation, as well as environmental awareness, said Bob Carlson, a pension fund manager who also leads the Retirement Watch investment newsletter.

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ROBO Rates as One of Four Environmentally Friendly Industrial Income Investments to Purchase

Carlson named Robo Global Robotics and Automation (ROBO), a fund focused on following an index of robotics-related or automation-oriented companies. The fund attained decent performance until 2022 when it faltered as it hit a downdraft that befell technology and industrial companies.

Both sectors have done poorly in 2022 as interest rates increased, Carlson commented. The fund has fallen slightly more than 40% in 2022, while its three-year return is just shy of an annualized 6%.

Chart courtesy of www.stockcharts.com

The ETF owns 81 stocks and has 17% of its holdings in the 10 largest positions. ROBO’s top holdings recently consisted of Cognex (NASDAQ: CGNX), Intuitive Surgical (NASDAQ: ISRG) and IPG Photonics (NASDAQ: IPGP).

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

Four Environmentally Friendly Industrial Income Investments to Purchase Include AGCO

AGCO Corporation (NYSE: AGCO), an agricultural machinery manufacturer in Duluth, Georgia, is delivering a 20% increase in both farmers’ productivity and profitability, according to Chicago-based investment firm William Blair & Co. In addition, AGCO’s precision products generally offer a two-year payback and, in some cases, a one-year payback, the firm added.

Some of AGCO’s innovation efforts focus on real-time “sense and react” in the field across a full crop cycle, the investment firm wrote. The use of “edge processing” and “advanced sensors” help maximize outcomes by enhancing productivity and sustainability for its customers, William Blair added.

AGCO, rated “outperform” by William Blair, intends for Fendt to be its premium brand in both North and South America, requiring a strong precision agricultural portfolio, a diverse array of solutions that work across the entire crop cycle and robust distribution and after-sales support, wrote William Blair. Fent sales are expected to be $700 million in 2022, and then more than double to $1.5 billion in three to five years, with an additional goal to achieve 20% market share in North America.

Chart courtesy of www.stockcharts.com

The company brings its newest equipment to the market, while the aftersales approach adds the latest technology to an existing piece of AGCO equipment. As for retrofit, the company sells advanced, agronomic solutions to farmers who want to update existing pieces of equipment with modern technology economically.

Former Money Manager Names a Favorite Environmentally Friendly Industrial Income Investment to Purchase

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

Most analysts have AGCO rated to achieve upside of 30-35% in 12-18 months, former money manager Michelle Connell counseled. When AGCO reported results in July, the company beat its revenue and earnings per share estimates. However, it left its estimates for the second half of 2022 at the same levels, continued Connell, CEO of Dallas-based Portia Capital Management.

Plus, the company continues to experience strong demand, with a potent order book into 2023, Connell said. Typically, at this time of year, the company does not have such a strong order base, she added.

Unless some external factors come into play, AGCO should experience strong financials for the end of the year, as well as next year, Connell counseled. Possible risks include economic exposure to the European Union (EU), as well as China, along with supply chain uncertainties. In addition, manufacturing in Europe could be affected by an upcoming energy crisis for the region this winter. But AGCO is expected to have enough alternative energy sources in the EU to remain largely protected. Finally, the company’s stock performance has been tied to economic cycles in the past.

AGCO benefits as the population of the world rises, since it needs to grow quality food amid declining acreage. Companies that manufacture equipment that maximize a farm’s acreage will continue to experience high demand, Connell concluded.

Deere Leaps into Four Environmentally Friendly Industrial Income Investments to Purchase

Deere & Co. (NYSE: DE), an environmentally oriented agricultural machinery company headquartered Moline, Illinois, halted its dividend during the pandemic but reinstituted it with a current yield of 1.27%. Additional evidence of the company’s conservatism is a payout ratio of just 20% to retain cash on hand.

Deere, rated “outperform” by William Blair, also has done an “excellent job” supporting its stock price, Connell said. In the last 10 years, Deere repurchased 25% of its shares outstanding, she added.

The company is known for buying shares when valuations are low and using its cash for the stock purchases, Connell continued. There have been some concerns regarding Deere’s insider sales of approximately $4 million in 2022 but Connell said she is not worried.

“Executives frequently have tight windows for the sales of their shares and estate planning may also be part of the executives’ strategy,” Connell told me. “I like DE because it takes advantage of the fact that that as a population increases, the demand for affordable food increases as well.”

Deere has done a “great job” of utilizing technology with its machinery to maximize crop yield, Connell said. While the stock has held up well in a falling market, potential upside for the next 12 to 18 months could top 20%.

Chart courtesy of www.stockcharts.com

Deal for Kreisel Lets Deere Run with Four Environmentally Friendly Industrial Income Investments to Purchase

Deere & Company signed a definitive agreement to acquire majority ownership last December in Kreisel Electric, Inc., a battery technology provider in Rainbach im Mühlkreis, Austria. Kreisel develops high-density, high-durability electric battery modules and packs. Plus, Kreisel developed a charging infrastructure platform that uses patented battery technology.

Since 2014, Kreisel has developed immersion-cooled electric battery modules and packs for high-performance and off-highway applications. Kreisel has a differentiated battery technology and battery-buffered charging infrastructure to serve a global customer base across multiple end markets, including commercial vehicles, off-highway vehicles, marine, e-motorsports and other high-performance applications.

Deere sees demand growing for batteries as a sole- or hybrid-propulsion system for off-highway vehicles. Products such as turf equipment, compact utility tractors, small tractors, compact construction and road building equipment could rely solely on batteries as a main power source. Deere keeps investing in and developing technologies to innovate, deliver value to customers and foster a future with zero emissions propulsion systems.

A majority investment in Kreisel Electric will let Deere optimally integrate vehicle and powertrain designs around high-density battery packs, while leveraging Kreisel’s charging technology to build out infrastructure for customer adoption.

Kreisel’s battery technology can be applied across a broad portfolio of Deere products to ramp up the latter company’s battery-electric vehicle portfolio. Deere will provide the global footprint and funding to enable Kreisel to continue its fast growth in core markets, said Pierre Guyot, senior vice president of John Deere Power Systems.

Kadant Cavorts Among Four Environmentally Friendly Industrial Income Investments to Purchase

Kadant Inc. (NYSE: KAI), a Westford, Massachusetts-based global supplier of technologies and engineered systems, offers sustainable industrial processing engineering services and technologies to help its customers add value with fewer inputs. On the horizon is a new recycling market for Kadant Inc.’s fiber repurposing business. Indeed, fiber-based packaging for beverages and food for consumer goods have undergone extensive trials in Europe and the United States.

In 2023, two private European (Paboco and Pulpex) companies and one North American (Footprint) fiber-based consumer packaging business are expected to materially accelerate the commercialization of environmentally friendly fiber-based packaging, according to William Blair. As adoption of fiber-based food and beverage packaging becomes more widespread, it will create an entirely new market for Kadant’s IP business, the investment firm wrote in a recent research note.

“Full-scale global conversion to fiber and cellulose-based packaging will take several years to become mainstream but the estimated $315 billion market for fiber to replace plastic for food and beverage packaging will create an entirely new segment for the worldwide fiber recycling market, in which Kadant holds 60-70% global market share, according to William Blair. Kadant is benefiting from three capital expansion cycles for its core businesses. They are modernization of sawmills for Industrial Processing (IP); a conveyance refurbishment and expansion cycle for aggregates, ore and agricultural producers at Material Handling (MH); and a new emerging market that expands fiber recycling as cellulose and fiber packaging to replace plastic containers for Flow Control (FC).

“To meet rising demand across all its end-markets, Kadant is expanding capacity in India, Finland, Mexico and Ohio, while the government in China is building Kadant a new modernized replacement plan,” William Blair wrote. “Kadant is also improving its supply chain resilience by near-shoring capacity closer to some of its largest markets such as North America and Europe. Given the company’s strong recurring revenue from parts and consumables sales — approximately 65% of sales — management noted that it would anticipate a 5% to 10% decline in parts and consumable sales in a recession, with potentially 10% to 20% lower capital equipment sales, skewed to large projects.”

Chart courtesy of www.stockcharts.com

The Russian invasion of Ukraine has shifted where fertilizer and grains are transported around the world, with incremental demand coming from the EU to boost capacity for material handling equipment to replace Russian exports of grain, wood, mineral and more, William Blair wrote. Valuations for food production equipment businesses are elevated due to their stability but Kadant expects moderation due to increased interest rates. Expanding Kadant’s industrial business market reach and geographic penetration could further help it to leverage a capital spending renaissance that could extend until late this decade.

Four Environmentally Friendly Industrial Income Investments to Purchase Should Benefit from Bivalent Booster

Experts at Dartmouth Health recommend that everyone eligible for a new bivalent COVID-19 booster receive it to increase protection against the omicron BA.5 variant, which has become the predominant strain in the United States. As a resident of Maryland, I received a phone call from the state’s health department on Tuesday, Oct. 11, advising me of the booster’s availability at pharmacies near my home. I wasted no time in scheduling a bivalent booster vaccination.

Even though COVID cases and deaths can hurt supply and demand for environmentally friendly industrial stocks, availability of a new booster to enhance the vaccine’s efficacy is a plus for these stocks. U.S. COVID-19 deaths rose more than 3,000 in the past week but less than the 4,000-plus in the previous week.

Cases in the country totaled 96,939,034, as of Oct. 14, while deaths jumped to 1,065,260, according to Johns Hopkins University. America has amassed the most COVID-19 deaths and cases.

Worldwide COVID-19 deaths totaled 6,566,234, as of Oct. 14, according to Johns Hopkins. Global COVID-19 cases reached 624,187,937.

Roughly 79.9% of the U.S. population, or 265,111,489, have received at least one dose of a COVID-19 vaccine, as of Oct. 12, the CDC reported. Fully vaccinated people total 226,200,755, or 68.1%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to almost 110.8 million people.

The four environmentally friendly industrial income investments to purchase are available at discounted prices after the market’s fall in 2022. Even with high inflation, Russia’s war in Ukraine and rising recession risk after 0.75% rate hikes by the Fed in June, July and Sept. 21, the four environmentally friendly industrial income investments to buy seem more resilient than economically sensitive cyclical stocks.

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

Three income infrastructure investments to purchase amid war worries, high inflation and continuing Fed rate hikes offer opportunities to overcome ongoing obstacles in pursuit of precious profits.

The three income infrastructure investments to purchase as Russia’s invasion of Ukraine brings terror, death and destruction appear poised to succeed amid market mayhem. Even though stocks have been volatile enough lately to show signs of a potential rally, economic and geopolitical risks cause many prognosticators to warn that a new 2022 market bottom may yet lie ahead.

A company on the list of three income infrastructure investments to purchase includes a producer of solar panels that could help alleviate a war-related energy shortfall in Europe due to Russia cutting its supply of gas to nations opposing its attack of Ukraine. A non-dividend-paying infrastructure stock showcases a company whose unmanned drones have proven their value in Ukraine as the nation’s outnumbered defenders recently have begun to push back a Russian invasion launched on Feb. 26 with more than 120,000 troops.

The attackers’ shelling of hospitalsschoolsresidential areaschurchesnuclear power plantsoil refineries and a theater used as a shelter became a precursor to brutal rapestorture and outright executions of Ukrainian civilians that caused many nations to place sanctions on Russia. The penalties include scaling back or severing ties with Russia as a producer of grain, oil and natural gas.

Courtesy of www.stockrover.com; Learn about Stock Rover Research.

Three Income Infrastructure Investments to Purchase Could Evade Financial Fallout

“Stocks have been beset with no shortage of problems in recent weeks,” wrote Mark Skousen, PhD, to subscribers of his weekly Home Run Trader advisory service. “The primary negative, of course, is that the Federal Reserve is determined to slow the economy, reduce demand, and thereby bring down inflation.”

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

But too much tightening, too fast, risks pushing the United States into a recession, continued Skousen, an economist who uses his analysis of inflation, interest rates and monetary policy in recommending stocks and options to buy. Economic statistics are showing a slowdown in the economy, if not a recession, he added.

“Even though real gross domestic product (GDP) is slightly negative, second-quarter gross output (GO) — which measures total spending in the economy — grew by 1.7% in real terms,” Skousen stated. “GO includes the supply chain, which is still catching up from the lockdown-induced shortages.”

Three Income Infrastructure Investments to Purchase Must Surmount ‘Super-Strong’ Dollar

Additional concerns include a “super-strong dollar,” sliding consumer confidence and a cooling residential real estate market, Skousen counseled.

Investors can consider an exchange-traded fund (ETF) that offers broad exposure to companies providing automation infrastructure, said Bob Carlson, a pension fund manager who also leads the Retirement Watch investment newsletter.

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

Carlson suggested Robo Global Robotics and Automation (ROBO), a fund that aims to follow an index that is focused on robotics-related or automation-oriented companies. The fund had decent performance until 2022 when it plunged. The fund became caught in the downdraft that befell technology and industrial companies.

Both sectors have done poorly as interest rates rose in 2022, Carlson commented. The fund has fallen nearly 40% in 2022, while its three-year return is just shy of an annualized 6%.

The ETF owns 81 stocks and has 17% of its holdings in the 10 largest positions. ROBO’s top holdings recently consisted of Cognex (NASDAQ: CGNX), Intuitive Surgical (NASDAQ: ISRG) and IPG Photonics (NASDAQ: IPGP).

Chart courtesy of www.stockcharts.com

Three Income Infrastructure Investments to Purchase Include Standex International

Standex International Corporation (NYSE: SXI), a multinational manufacturer of food service equipment, engravings, engineering technologies, electronics and hydraulics headquartered in Salem, New Hampshire, has many growth paths ahead of it. Rated by Chicago-based investment firm William Blair to “outperform” the market, Standex International could materially accelerate organic growth to 10% or more during the next two to three years, excluding its commercial solar panel production volumes for an innovative Gr3n joint venture with Italy’s Enel (OTCMKTS: ENLAY).

That partnership with a multinational manufacturer and distributor of electricity and gas has gained importance due to the suspected sabotage of both under water pipelines of the Nord Stream 1 from Russia to Western Europe, along with one line of Nord Stream 2. Seismologists in Denmark and Sweden suggest that sizeable explosions on the order of 100 kilograms of TNT occurred in both incidents.

With Russia’s President Vladimir Putin facing unexpected battlefield setbacks more than six months after he ordered the Feb. 26 invasion of neighboring Ukraine that the former KGB agent euphemistically called a “special military operation,” the pipeline sabotage seems targeted to hurt European nations as winter nears. Since Putin ordered troops into Ukraine in February, Russia has cut supplies of natural gas to Europe to heat homes, to generate electricity and to fuel factories.

European Leaders Complain of ‘Energy Blackmail’ by Putin

European leaders have accused Putin of using “energy blackmail” to weaken their support for Ukraine as the country seeks to repel Russia’s aggression.

Without presenting any evidence, Russian officials are trying to blame the United States for the apparent sabotage, even though the affected nations are among America’s closest allies. President Biden countered the accusations were the latest in a continuing Russian campaign of “disinformation and lies.”

Biden also described the explosions of the Nordstream pipelines as acts of “sabotage” and discussed sending divers to examine the damage to find evidence that could be brought to light. Russia’s audacious move to “annex” Ukrainian territory in a Putin-led ceremony last Friday, Sept. 30, was declared illegal by Ukraine, the United Nations, the United States and many other Western allies who said it violated Ukrainian and international law.

Solar Panel Design Aids Second of Three Income Infrastructure Investments to Purchase

Standex further plans to benefit from significantly higher research and development (R&D) investments for new product development to “materially increase organic sales growth,” William Blair opined. New product launches are expected across all five of Standex’s businesses in fiscal 2023, including high growth end-markets such as renewable energy, electric vehicles, human health, commercialization of space and sustainable products.

Standex’s Gr3n joint venture could attain full commercialization by mid-decade, potentially becoming Standex’s sixth business segment. The result may boost Standex’s “organic sales growth” to the low teens in the next three to five years, the William Blair analysts wrote.

The joint venture has developed and tested a prototype for a highly innovative, extremely efficient and 100% recyclable new solar panel design that is 30-35% more efficient and weighs 38% less than traditional glass solar panels. With interest in solar panels rising as the European Union (EU) scrambles to replace the 40% of its energy previously sourced from Russia, Standex is expanding electronics’ production capacity in Germany, China and India, the investment firm reported.

“If the new recyclable, highly efficient solar panel can be cost-effectively produced, it could become the largest new product in Standex’s history,” according to the William Blair analysts.

Chart courtesy of www.stockcharts.com

Deere Ranks Among Three Income Infrastructure Investments to Purchase

Deere & Co. (NYSE: DE), a farming machinery infrastructure company headquartered in Moline, Illinois, is recommended by Michelle Connell, a former portfolio manager who now serves as president of Dallas-based Portia Capital Management.

Michelle Connell, CEO, Dallas-based Portia Capital Management

The rationale for recommending Deere, Connell said, includes:

-More than half its revenues come from large agriculture.

-If the War in Ukraine continues, U.S. farmers will benefit from higher prices for their crops.

-Higher farm profits mean that that farmers and farming corporations will be more likely to buy large expensive farm equipment.

Deere has climbed since July and its reduced price may offer a good entry point, Connell continued.

Non-Dividend-paying Battlefield Drone Stock Shows Potent Potential

“Additive manufacturing technologies are at an inflection point in their ability to solve challenges faced by manufacturing companies, particularly with recent labor shortages and supply chain disruptions,” according to William Blair & Co. “Historically, additive manufacturing applications have been limited by productivity capabilities and lack of industrial strength materials.”

Executives of AeroVironment, Inc., (NASDAQ: AVAV), an Arlington, Virginia-based maker of unmanned drones and other multi-domain robotic systems, recently gave a presentation to William Blair analysts about how software from its Plank and Progeny acquisitions provided a key competitive advantage. Indeed, the success of AeroVironment’s “kamikaze drones” in Ukraine may extend their use into Asia.

AeroVironment officials compared the Ukraine War-related Switchblade media coverage to “100 SuperBowl ads worth of press.” Before the war, AeroVironment was not even authorized to export the Switchblade.

“It was used in the Middle East for over a decade, but it was viewed as a niche offering,” William Blair analysts wrote. “Ukraine is providing a testing ground that proves the Switchblade 300 is incredibly valuable. Now it has U.S. State Department permission to sell to more than 20 countries. In mid-September, reports revealed that Japan is evaluating purchasing several hundred kamikaze drones and is considering AeroVironment’s Switchblade.”

A recent Switchblade 600 contract for Ukraine valued at $2.2 million may be a tipping point. On Sept. 15, almost six months after an initial report that a contract was in the works, it came to fruition.

While Javelin, Stinger and TOW traditional missile systems have a three-mile maximum range, the Switchblade 600 has a 20-mile top range with similar effects. The Switchblade 600 has the same size warhead and can be launched without a visual lock on the target.

Chart courtesy of www.stockcharts.com

AeroVironment Rated ‘Outperform’

William Blair rated AeroVironment to “outperform” the market and indicated it appears to be the favorite to win the Army $1 billion/10-year FTUAS program, but an executive at the robotics company estimated that the U.S. Navy addressable market may be even larger than the potential market for the Army. Software from Planck, acquired by AeroVironment, enables the JUMP-20 military battlefield drone to perform vision-based autonomous landings onto moving platforms, such as maritime vessels.

The JUMP-20 is a vertical takeoff and landing (VTOL), fixed-wing unmanned aircraft used to provide advanced multi-sensor intelligence, surveillance and reconnaissance (ISR) services. AeroVironment’s systems “flourished” during Navy IMX 2022 exercises earlier this year, according to William Blair.

Regarded as the largest unmanned exercises in the world, IMX 2022 showed how AeroVironment’s LEAP software received feeds from manned aircraft, unmanned aircraft, manned vessels and unmanned vessels. At IMX 2022, AeroVironment’s LEAP software was not supposed to be the hub, but when other software did not execute properly, AeroVironment’s LEAP software assumed the hub role on an ad hoc basis.

“We expect AeroVironment’s success at IMX 2022 to lead to contracts for its JUMP-20, Puma and Switchblade aircraft down the road,” the William Blair analysts wrote.

U.S. CDC Halts Its Country-by-Country Travel Notices

The U.S. Centers for Disease Control and Prevention (CDC) dropped its country-by-country COVID-19 travel health notices on Monday, Oct. 3. Those warnings began early in the pandemic as COVID-19 cases and deaths climbed.

COVID risks affect supply and demand for infrastructure stocks, but not as much as cyclical companies whose share prices can soar when economic conditions are favorable but fade fast when inflation, a potential recession and Fed interest rate hikes imperil stock prospects. Savvy investors monitor COVID-19 outbreaks and lockdowns to forecast how certain stocks and sectors, such as infrastructure, are affected.

Another encouraging sign occurred when Canada announced on Sept. 26 that it would remove all remaining COVID-19 entry restrictions, such as testing, quarantine and isolation requirements. That development could boost trade and tourism between that country and the United States.

China’s strict zero-tolerance COVID policy continues to be controversial and recently sparked a rare protest in its technology hub of Shenzhen, social media video showed. The dissent came after government officials ordered a sudden lockdown due to 10 new infections on Sept. 27 in the city of more than 18 million people. Officials ordered residents in three districts there to stay home.

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

U.S. COVID-19 deaths ticked up by nearly 4,000, up about 1,000 compared to roughly 3,000 the previous week. Cases in the country totaled 96,644,312, as of Oct. 7, while deaths jumped to 1,062,418, according to Johns Hopkins University. America stands out dubiously as the nation with the most COVID-19 deaths and cases.

Worldwide COVID-19 deaths totaled 6,555,919, as of Oct. 7, according to Johns Hopkins. Global COVID-19 cases reached 620,865,766.

Roughly 79.7% of the U.S. population, or 264,562,221, have received at least one dose of a COVID-19 vaccine, as of Oct. 6, the CDC reported. Fully vaccinated people total 225,870,613, or 68%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to almost 110.6 million people.

The three income infrastructure investments to purchase can be bought at reduced prices after a rough 2022 market wide. Despite Russia’s continuing war in Ukraine and its audacious act of claiming to annex Ukrainian territory in violation of international law, along with high inflation and recession risk after 0.75% rate hikes by the Fed in June, July and Sept. 21, the three income infrastructure investments to purchase offer access to government-supported businesses that are less economically sensitive than the private sector.

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

 

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