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Shares of UPS climbed 4.7% into a record area in trading on Tuesday, after the delivery giant announced Q1 profit and revenue that were way over expected numbers.

Net income for the company was at $4.79 billion, as earnings per share (EPS) went up by 393%. While adjusted EPS came to $2.77, defeating the expected $1.72.

Total revenue increased by 27% to $22.91 billion. And domestic revenue boosted by 22% to $14.01 billion. Globally, the company had a revenue growth of 23% to $4.61 billion, beating the expected $4.13 billion.

The company’s freight and supply chain revenue went up by 34% to $4.29 billion, destroying expectations of $3.90 billion.

“During the quarter, we kept executing our better not bigger strategy rule, which allowed us to get the top opportunities which drove our incredible financial results., said CEO Carol Tomé.

UPS said it was not giving EPS or revenue guidance considering the continuing economic uncertainty.

Author: Blake Ambrose

The space race among the world’s two wealthiest men got heavy on Tuesday when Tesla CEO Elon Musk swiped at Amazon’s Jeff Bezos’ attempt to compete on a large NASA contract.

The two have been attempting to put long-range rockets into orbit, and were competing for a big contract with the U.S. government to manufacture a spaceship to put astronauts on the moon as soon as 2024.

Bezos lost and Musk won. And Bezos is not happy.

Bezos’ company, Blue Origin, sent in a protest to the Government Accountability Office (GAO), saying NASA moved goalposts for bidders at the last moment.

Musk, who leads SpaceX, hit back in a tweet saying: “Can’t get it up (to orbit) lol.”

No explanation was given about what this tweet meant, but Musk posted a screenshot of a story about Bezos announcing Blue Origin’s moon lander.

Blue Origin has got far behind United Launch Alliance (ULA) and SpaceX on orbital technology, missing out on U.S. contracts that begun in 2022. ULA is a partnership between Lockheed Martin Corp and Boeing.

These companies are mostly aimed at sending satellites into orbit for a cheap price and reusing parts of rockets to bring down costs.

NASA gave SpaceX the contract instead of Blue Origin. The program aims to put humans back onto the moon.

“NASA has performed a flawed contract for the program and changed the details at the last moment., Blue Origin said in a statement.

“Their choice prevents competition and restricts supply, and not only sets back, but also threatens America’s future moon mission. Because of this, we have filed a complaint with the GAO.”

Author: Blake Ambrose

Bitcoin is having its largest bounce since February after a tweet from Tesla CEO Elon Musk seems to have re-flamed investors’ faith in the top cryptocurrency.

Bitcoin was higher by 5.79%, reaching $53,420, which is up from an overnight low mark of $47,079, after experiencing a two-week pullback. The cryptocurrency reached $64,829 previously this month, mostly based on the excitement for the direct listing IPO of Coinbase.

It dropped under 100-day average at the end of last week. The first time that has happened since October when JPMorgan Chase warned that its drive upward could be at risk.

Musk sent out a message via Twitter over the weekend, using an intentional misspelling that refers to a popular Bitcoin meme and reference.

Musk’s latest hint towards bitcoin comes ahead of Tesla’s quarterly numbers set to be released this week, the first time after the company added $1.5 billion of bitcoin to its holdings.

Bitcoin fans, watching Musk’s signals, will be looking closely for any bitcoin related statements in Tesla’s Q1 earnings report, set to be published this week.

Musk has made numerous cryptic bitcoin and crypto social media posts recently, something he did before Tesla revealed its large bitcoin buy in February. Musk has also routinely posted about the meme cryptocurrency Dogecoin.

Meanwhile, shares of bitcoin related stocks were on the rise on Monday, with Coinbase up 4.35% at $304.28, Riot Blockchain higher by 6% at $40.29 and Marathon Patent boosted by 7.7% at $34.79.

Author: Blake Ambrose
The companies below are riding solid long-term trends and have strong numbers that can let them capitalize on big opportunities. They are also trading at levels significantly under their all-time highs — which is surprising because of the ongoing stock rally.

Investors can get attractive profits from any of these powerful stocks using just $1,000.

1. TSM

An exceptionally good way to spend your $1,000 wisely is to buy shares of Taiwan Semiconductor Manufacturing.

The spike in demand for electronics has added to the already heightened chip demand from areas like 5G and the Internet of Things, high-performance computing, and AI. However, supply chain problems and geopolitical tensions have resulted in a global chip shortage. TSM is now trying to to assuage this problem and announced plans to invest $100 billion over three years in capacity and R&D.

The company does however expect a demand-supply mismatch until 2022. Yet TSM is currently 57% of global chip production, the company is positioned to benefit from this with higher pricing.

While competitors like Intel (INTC) and Samsung have unveiled expansion plans, their success is far from certain. Against this backdrop, TSM seems a superior pick, especially since it pays a dividend yield of near 1.5%. Hence, although TSM is at 11.6 times trailing-12-month sales, which isn’t cheap, but investors can still bring in robust returns from this stock.

2. Nio

Investors might also invest their $1,000 into Nio for some great profits. This stock has gone down over 38% from its high of $66.99 in early January of this year. The company’s problems come mainly from retail investors changing away from growth stocks and into value stocks. The company also missed its consensus earnings estimate in Q4 of last year.

Despite all these problems, the underlying strength of Nio are very strong. In 2020, China was 41% of global EV sales. Estimates say that 1.9 million EVs will be sold in the country this year, a y/y increase of 51%.

While EVs will account for 9% of total auto sales in China, the percentage is expected to expand to 35% by 2025. Nio is well stationed to gain a significant share of this increasing market.

Nio is also now guiding for Q1 revenues in between $1.13 billion to $1.16 billion, which means a y/y growth of between 438% to 451%. These estimates match Nio’s 423% y/y increase in vehicle sales to 20,060 units.

With Nio trading at 25.7 times trailing-12-month sales, which is high. Investors can still get handsome profits from this stock even at elevated levels, considering that Nio has a bold strategy to capture the huge opportunity in China.

 

3. Gilead Sciences

Finally, Gilead Sciences is also a smart place to invest $1,000, especially for risk-averse investors. The company gives a solid dividend of 4.3%, much greater than the S&P’s yield of 1.4%. With a trailing-12-month sales dividend ratio of 46.25%, the company is flexible enough to keep its dividend policy going into the long-term future.

However, this stock has lowered by over 15.8% in the past year. The first covid treatment for patients approved by the FDA, Veklury, may soon decline as more vaccinations lower the number of people getting treatment. In November of last year, the WHO even recommended against Veklury, which hurt the drug’s sales.

But there is more to Gilead Sciences than the Covid drug Veklury. The company also has a very strong foothold in the HIV market and is developing a presence inside the oncology sector. To offset older HIV drugs like Truvada and Atripla being phased out, the company has been focusing on creating new HIV drugs with better safety. The company’s recently released HIV drug, Biktarvy, is the top drug for HIV patients in the States. The company also expects to apply to the FDA for Lenacapavir as a six month treatment for HIV patients. In oncology, Gilead Sciences is using cell therapy drug Trodelvy and Yescarta, a drug for breast cancer. Additionally, Trodelvy has the possibility to be approved for several other tumor indications.

 

Gilead Sciences brought in $5 billion or almost 67% of its total cash to shareholders using their dividends and share repurchases last year. Despite many attractive possibilities and achievements, the stock is trading at just 3.3 times trailing-12-month sales. Making it an attractive bet for income investors and value investors.

 

Author: Scott Dowdy
The top dividend stocks increase their payouts over and over again. And those steadily increasing income streams add up for superior returns.

Three stocks in this excellent category of routine dividend growth are utility Consolidated Edison (ED), Canadian energy company Enbridge (ENB), and real estate investment trust Realty Income (O)Let’s discuss these world-class stocks right now.

Consolidated Edison

Consolidated Edison is reaching an important dividend marker. The utility that gives electricity to the NY City area has boosted its payout for 47 straight years. That puts it only three years away from joining a top group of dividend heavyweights.

Consolidated Edison seems to be on track to get that rare honor. The company expects to increase its earnings per share by between 4% and 6% yearly over the next five years. Underlying that forecast is the recovery and expansion of the New York City market and the company’s solar energy business, where it is the second-largest solar energy creator in North America and seventh largest globally. Consolidated has plenty financial ability to fund the capital projects needed to keep growing its earnings, thanks to its investment-grade numbers and relatively conservative dividend ratio. It should stay a world-class dividend asset for years.

Enbridge

Enbridge has boosted its dividend in every year of the past 26. But even more impressive, it has an excellent dividend growth rate. The company has increased its payout at a 10% compound rate during the past 26 years. 

That’s a stellar track record, especially in the rough energy industry. The company’s heavy dividend growth has delivered the ability to generate great returns of 15% annually over the past 25 years, well ahead of the S&P 500 and its peers.

Enbridge should continue growing its dividend in the years to come. The company has a multi-billion-dollar expansion program happening now that should deliver 5% to 7% per share growth through 2023. 

Beyond that, it keeps moving its investments into infrastructure that supports low carbon sources. Enbridge also has good financial flexibility to pay for this growth thanks to its investment-level numbers and conservative payout ratio. 

Realty Income

Realty Income has been perfect over the years. The REIT has given out 610 consecutive monthly dividends since it began over half a century ago. And since 1994, the REIT has boosted its payout 110 times, including in each of the past 94 quarters.

Overall, Realty Income has enlarged its payout at a 4.4% compound rate since its IPO. That has helped it create a 15.2% yearly average return as a company.

Realty Income should not have a problem continuing this trend. It has one of the best balance sheets in the industry as it’s one of only eight REITs with A-rated credit. And with its conservative dividend ratio, it has the financial flexibility to keep buying new properties, which drives its growth and payout. 

 

Author: Blake Ambrose

The $1.9 trillion relief which was approved in March is only one part of a massive plan to lower poverty and help the US economy as it gets out of the pandemic.

The effort started with the American Rescue Plan and its check of $1,400 per person and runs through seven child credit payments and monthly $300 checks for unemployed people.

But Biden is also working on two more stimulus proposals for 2021 that would put more money directly into the pockets of some people. Are you one of them? Keep reading to find out.

How you could benefit

While this stimulus is still months away from approval, here are some of the main areas already being discussed in the plan, which is being called the American Families Plan:

Expand the child tax credit to 2025: The temporary child tax credit expansion is expected to lower child poverty by almost 45%. The expansion of the program will expire this year, unless Congress renews it. Biden’s plan would extend this to 2025.

Free college: Biden’s plan would pay for the first two years of community college, for both adult students and new high school grads. Training programs other than community colleges would also be paid for.

Free prekindergarten: The plan is expected to give free pre-K education for 3- and 4-year-olds.

Paid medical and family leave: Biden is expected to push broader support for 12 weeks of paid leave.

The second and third parts of Biden’s stimulus plans are also still being discussed, but what is being proposed thus far could either let you keep your money or send you brand new checks.

Student loan forgiveness of up to $50,000: With student loan debt getting to $1.7 trillion, higher than credit cards or auto loans, Biden has called for canceling $10,000 in debt per student and has ordered Education Secretary Miguel Cardona to investigate if he has the ability to cancel student debt.

Fourth stimulus check(s): The IRS is still sending out one-time payments for the third stimulus. But before Biden even passed the American Rescue Plan bill, Congress was calling for him to include a fourth payment in the next relief plan.

Minimum wage increase to $15: The initial effort by President Biden and members of Congress to increase the minimum wage to $15 an hour failed in March. The next time around, it could succeed.

Author: Blake Ambrose
The GameStop mania shows that Reddit traders are an investing force that should not be underestimated.

Recently, two biotech firms have peaked the interest of Reddit traders. The allure of these two companies has much to do with their triple or even quadruple-digit gains over the past year.

There’s only one problem: When you look forward five-years, both of these stocks look deeply in the red.

Has Reddit selected another group of besieged businesses yet again, or are these two stocks in fact, turnaround stories that could make you rich?

1. Ocugen

Ocugen (OCGN) is a Reddit pick in part due to it co-developing and making a coronavirus vaccine that was originally created by Bharat Biotech. Given the world’s large demand for vaccines, the short-term potential of this deal could be huge. There is lots of room for more coronavirus vaccines to be given, but the details are where I believe Reddit has it wrong.

Bharat Biotech’s “Covaxin” vaccine has been proven to be effective and safe in phase 3 trials, but it has not received approval yet in America. That’s an issue.

Also, Ocugen’s deal to monetize only covers America, where vaccination is rapidly progressing with other vaccines already approved for sale. So, the revenue potential is maybe less than Reddit traders are wishing for.

 

Then, there is the fact that Ocugen will get just 45% of the profits from sales in America. The company is an early-stage biotech that does not yet have any clinical development projects and it is not a drug maker.

Without a history of profitably manufacturing anything and with a product developed completely by another company, it looks to be on shaky ground and investors should know it is much riskier than it might seem at first.

2. Humanigen

Humanigen (HGEN) is another biotech company that Reddit loves and is also doing a coronavirus project. Instead of a vaccine, the company is developing its antibody therapy lenzilumab in phase 3 trials to test its effectiveness at saving COVID-19 patients.

In its recent update in March, the company reported that lenzilumab reduced the chances of needing a ventilator by up to 54%. That’s a very promising development, and investors should be excited. But again, the details are more complicated.

Certain populations are more likely to have a severe covid case when compared to younger people. But also, these vulnerable people are the ones most likely to be vaccinated against the disease. Around 65.9% of adults over 65 are already vaccinated. And those numbers will only go up.

So, with the market size decreasing, and Humanigen still having to finish its phase 3 trials and apply for approval before it can even start bringing in revenue. It’s obvious that Humanigen’s drug will save lives, but that does not mean a fortune for the company or the investors who invest in it.

 

Author: Scott Dowdy

Amazon (AMZN) has announced this week it will start using biometric technology at a Whole Foods store in Seattle that will let customers pay for their purchases with nothing but a scan of their palm print.

 

The system, called Amazon One, lets users link a credit card to their palm print, which they can use for payment.

Other Whole Foods locations will offer the technology soon, and this could be just the beginning. Amazon intends to license this technology, which it says will have a wide range of benefits for access and payments, including at stadiums, retail stores, and offices.

 

Amazon One was rolled out at the company’s cashierless Amazon Go stores to aid its entry. To sign up, customers simply put their card into a reader, hold their palm over the device, then follow the guide to link their card to their palm print.

The technology uses computer vision to analyze the lines of the palm, creating a personal digital signature in seconds. Once sign-up is done, customers simply hold their palm over the contactless device at checkout to process a payment.

The e-commerce leader created the system to improve user experiences, including at checkout counters, entering a location, or showing a badge at work. Amazon says the tech is a “fast, reliable, and secure solution to identify people or authorize a transaction.”

 

Author: Steven Sinclaire

 

U.S. markets took a sharp turn lower on Thursday after a report was published that revealed the Biden administration is considering raising the capital gains tax.

The Dow lowered by 321 points, or 0.94%, while the S&P 500 and Nasdaq declined 0.94% and 0.92%, respectively.

Bloomberg says Biden is thinking of raising the top capital gains tax rate for people making higher than $1 million to around 39.6% or 43.4%. The increase would fund Biden’s American Families Plan, which is still being formed.

For economic data, jobless claims fell to a covid-era low of 547,000, better than expected. Also, existing-home sales lowered to a seven-month low as high prices and low inventory blocked transactions.

In addition to his tax announcement, Biden’s virtual conference on Thursday with 40 world leaders, including Chinese President Xi Jinping, featured him pledging to lower U.S. greenhouse gases by 52% before this decade is over.

Automakers and other carbon-heavy companies were among the firms being focused on as Biden unveils his climate actions.

Author: Scott Dowdy

Social Security does not mean an easy retirement. A typical payout will usually only replace around 40% of your income. Investing in dividend stocks is one way to solve this retirement-destroying problem, but focusing on just a few dividend stocks can also be risky.

The solution? Look for exchange-traded funds (ETFs) that give high dividends so you can have diversification on top of income. These three Vanguard funds are the best places to begin.

Vanguard High Dividend Yield

The Vanguard High Dividend Yield ETF (VYM) is the top dividend ETF in the country. It includes an index of 411 companies with its largest focus being the financial sector (22.4%), and second being the healthcare sector (13.2%), and consumer staples (12.5%).

This fund has an annual yield of around 2.85%. That’s double the S&P’s 1.42% from this past year.

The VYM tracks the FTSE High Dividend Index which ranks stocks by estimated dividend yields and focusing on the higher-paying ones.

Vanguard Real Estate Index (VNQ)

REITs are among of the most reliable dividend sources. This is because they are legally forced to pay at least 90% of their income to shareholders.

The Vanguard Real Estate Index Fund (VNQ) has around 95% equity REITs. It invests the remaining amount in development and management. The VNQ’s 12-month yield as of February was 3.22%.

The fund has 174 stocks that reach over the commercial real estate sector. Specialized REITs, like those that invest in data centers, cell towers, and self-storage, make up 36.8% of its assets, with second being residential (13.7%), then industrial (10.4%), and retail (10.2%), and finally healthcare (8.9%).

 

With almost $64 billion in its portfolio, the VNQ is the largest REIT ETF in the country.

Vanguard International High Dividend Yield (VYMI)

If you want to expand your investments beyond American stocks, look into the Vanguard International High Dividend Yield (VYMI). It is the international form of Vanguard’s High Dividend Yield Fund.

This ETF has 1,197 international stocks with the largest holdings being in Japan, the UK, Canada, Taiwan, and Australia. But 28% of its stocks are in growing markets.

The VYMI’s 12-month yield is 3.13%, right over its U.S.-based sister fund. While this fund is somewhat riskier, that extra risk could be worth it for the diversification and greater growth potential.

 

Author: Blake Ambrose

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