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Bitcoin’s Top Competitor Dethrones a Precious Metal

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Ethereum (ETH), the number two cryptocurrency by market cap, has been increasing even more than Bitcoin (BTC) over the previous couple of days.

Hours ago, the price of the cryptocurrency reached a record to new all-time highs at $2,741. ETH was trading at about $2,730, making its market cap nearly $315 billion.

The Bitcoin competitor is now almost breaking into the top 30 most valuable global assets.

Ethereum (ETH) Beats Platinum

Ethereum (ETH) is now the 33rd most valuable global asset, beating the market cap of Platinum.

Based on a Cointelegraph report, the overall capitalization of precious metal platinum is at $303 billion. This is from from an analysis of the metal’s cumulative mining since 1900.

Ytd, Platinum has beaten other precious metals, including silver and gold, but can’t beat the momentum of Ethereum (ETH) and other cryptocurrencies.

Ethereum seems to be in the middle of an unusual bull run. Even Bitcoin is not matching ETH’s increasing trend ytd. More challenges are expected to show for the cryptocurrency which is pushing to attain new milestones.

Since the first day of 2021, Ethereum (ETH) has increased more than 350% amidst the large increase in adoption of cryptocurrencies and the hope of a big reduction in gas fees through the use of its new EIP-1559 implementation.

The current upside trend of ETH has also lowered Bitcoin’s dominance substantially. Ethereum now is around 15% of the crypto world, while Bitcoin is at 50%.

Author: Blake Ambrose
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7 Reasons This Is The Best Retirement Investment

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The beauty of having dividend-paying stocks is that you don’t have to give up income for retirement: Your dividend does not depend on you going to the office every day.

That’s only one reason for adding dividends to your strategy for retirement. Continue on for seven more reasons why dividend stocks are the MVPs of every smart investor’s retirement.

1. Comforting

In a downturn, good dividend payers are the bright points in your portfolio. They might take a temporary hit on their share price, but they still give you cash. When other positions you own are losing money, you will appreciate these little payments for the psychological comfort they provide.

2. Dividend yields vs Treasury maturities

A good dividend stock could yield 1% to 3% per year. Consumer company Colgate-Palmolive (CL) gives 2.28%, for example; McDonald’s  (MCD) gives 2.20%, and pharmaceutical giant Johnson & Johnson (JNJ) yields 2.49%.

These numbers are comparable to the yields on 20-year Treasury bonds. But short maturity Treasury yields are not so competitive. Seven- to 10-year bonds give between 1% and 1.8%, and five year maturities are under 1%.

3. Dividends and retirement accounts

You can accumulate a larger stake in dividend stocks by reinvesting the payments in the years before your retirement. That’s far more easy in a retirement account where you pay no taxes.

4. Dividends and inflation

Some dividend companies increase their payments every year. Those that grant annual dividend increases for more than 25 years in a row are rare gems. Once a company gets into this level of dividend, the executive team is very motivated to maintain it. Which is great because the rising dividend helps you combat inflationary increases in your living expenses during retirement.

5. Consistent dividends

Since we are talking about dependable dividend companies, take a moment to consider the achievement of raising dividends for 25 years or more. That takes a focused executive team as well as a good business model that produces plenty of cash. Those same benefits make good dividend stocks great as long-term parts of your portfolio.

6. Dividends and appreciation

Unlike bonds, your dividend stocks also increase while they are giving you cash. For instance, McDonald’s, Colgate-Palmolive, and J&J have all three had average annual gains of 9% over the past decade.

 

7. Dividends and cash

Dividend companies give you cash, and that is crucial to ensuring your retirement in comfortable. When you use your dividends to fund your retirement distributions, you’ll be less dependent on liquidations. Fewer liquidations will maintain your earnings power and lower your risk of selling your investments at a bad time.

Reliability and stability

 

There is no guarantee any company will keep paying you a dividend, just as there is no certainty any stock will increase. To avoid these risks, you have to stay out of the market completely, which could mean missing out on your retirement goals.

Dividend payers are not without risk, but they are more reliable and stable than their peers that don’t give dividends. And those are the benefits you want from these retirement MVPs.

 

Author: Blake Ambrose
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The Best $300 Dividend Stocks

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You don’t need a lot of cash to start investing. And buying stocks that give you good dividends means you can get money on a routine basis to buy more investments.

There are two crucial things to look for when investigating dividends. The dividend yield percentage, which is the stock’s dividend divided by its share price. And the ability of the company in question to keep paying and raising its dividends.

Our top picks that give both of these, and can be bought with just $300 are listed below:

AbbVie

You can buy one share of AbbVie (ABBV) for about $111. The drugmaking heavyweight pays you well to be a stock holder. AbbVie’s yield is at around 4.7%.

The odds seem good that AbbVie’s dividends will keep growing. The company has boosted its dividend for 49 years in a row. It’s only one dividend increase away from joining the top elite of dividend royalty of companies who have increased their dividend for 50 consecutive years.

There are a some issues to know about with AbbVie. The firm’s top drug, Humira, loses its patent exclusivity in 2023. Also, the FDA has delayed its reviews of Rinvoq in treating psoriatic arthritis and dermatitis. AbbVie is counting on the autoimmune drug to help offset the loss of sales from Humira.

 

However, AbbVie is still confident about the potential for FDA approval of Rinvoq. The drug has already received FDA approval for rheumatoid arthritis uses. Assuming this drug and others in AbbVie’s product line meet their potential, the company is anticipated to keep growing even after Humira loses its patent.

Pfizer

Pfizer’s (PFE) price is under $40 currently. Its yields are almost 4%. Note, however, the pharma giant will soon cut its dividend.

You shouldn’t be concerned about this. It’s being done in combination with Viatris starting a dividend. Viatris was created in November 2020 through the merger of Mylan and Pfizer’s Upjohn sector. Pfizer’s dividend will only be lowered by a small amount.

 

Pfizer seems to be in a great position to boost its dividend. Its potential for recurring revenue from its COVID vaccine are also looking much better. The drugmaker and BioNTech recently agreed with the European Union (EU) to deliver 100 million more doses of their vaccine, bringing the overall supply to 600 million doses. The two firms are also talking with the EU to give another 1.8 billion doses between now and 2023.

Verizon

Verizon Communications’ (VZ) price is below $60. The company’s dividend yield is at 4.3%. Verizon has increased its payout for 14 years in a row.

The company seems to be ready and able to keep that trend of dividend increases going. Verizon reported spectacular earnings growth and revenue in its latest report. It has a great financial position.

 

It’s also among the easiest ways to profit from the move to 5G. The wireless technology is only just getting start but should be an important driver for Verizon over the next years.

 

Author: Blake Ambrose
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1 “Dollar Stock” To Buy Right Now

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“Buy low and sell high” is a saying as old as investing itself. It sounds simple but it is actually more complicated.

How do we define low? Is this the price we are talking about or the valuation? And for selling, you will only know what is high in hindsight. A better goal might be to purchase good companies at a great value and invest long term.

If you can find good value stocks with long-term growth possibilities, then you are doing pretty well. Here is one such stock priced under $10 right now that you should investigate.

Mortgage lending heavyweight

UWM Holdings (UWMC) is among the country’s leading mortgage lenders (its full name is United Wholesale Mortgage). It is the second-largest residential lender and the number one wholesale lender overall, with 34% of the market as of 2020.

UWM partners with third-party brokers to give loans, as compared to retail lenders like Rocket, who offer their loans directly to borrowers.

The company was created in 1986 and was the largest wholesale lender for the previous six years. It went public on Jan. 22 after combining with an SPAC, Gores Holdings. Since UWM started selling at around $11.50 a share, it declined roughly 27% to $8.40. That lowered the stock’s forward price-to-earnings ratio to around 8.5 — not bad for a market leader with strong growth potential.

The mortgage industry can be cyclical, as we saw over the previous year. In 2020, the company had record numbers with $182 billion in loans, a 69% boost over 2019, which was the previous record. It brought in $3.38 billion in net income in 2020, which was a 715% raise over 2019.

With last year being amazing for the industry amid record low interest rates and a skyrocketing amount of refinancings. What happens now? CEO Mat Ishbia says it is only a start. The company has key advantages on what to build, as he spoke about on the Q4 earnings call for 2020.

“2020 was not a high point to us. It’s a starting point from where we are going, and that’s our plan. So, we’re going to keep building our business. We are well stationed for the future. And we see growth in 2021, and we are very excited about it., Ishbia said.

The company’s key advantages going into 2021 are:

First, over the previous years, it has put in millions into technology making its systems better than its competitors, on average, and lowering the time it takes for brokers to finish deals. That makes for a cheaper and faster deal for everyone, including the end borrowers.

Second, the CEO says he believes the wholesale sector will expand as the model gives borrowers the option to find better deals through brokers using its website, findamortgagebroker.com. The company says it will market that website, starting with their Super Bowl ad earlier this year.

Overall, UWM also says it expects loan origination growth through 2021 and beyond, and analysts are optimistic on its possibilities, giving the stock a median price target of $11 over the next year.

This company, as a market leader, has increased its loan volumes through numerous environments over the previous six years and should keep going. Priced at under $10 a share, UWM is a wonderful buy.

 

Author: Blake Ambrose
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Biden Coming For Your Money To Pay For Failing Economy

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The Biden White House has revealed the details of Biden’s American Families Plan that will increase taxes and pile on trillions in additional spending.

President Biden and Democrats are embracing large tax increases on families and businesses while spending trillions on liberal agenda items.

“The President’s change will ensure the wealthiest Americans use the same rules as other Americans., the White House says.

“Along with the American Families Plan, President Biden will also be proposing a set of policies to ensure the wealthy pay their share in taxes., a comment from the White House read, “while making sure no on earning under $400,000 will see their taxes increase.”,.,

This reminds many observers of how the Obama Administration repeatedly claimed that insurance premiums would lower with Obamacare and people would get to keep their health insurance plan and doctor.

Ryan Ellis, a conservative activist, listed the new tax hikes on Twitter.

“The top income rate is being raised from 37 percent to 39.6 percent., Ellis said. “This changes all taxable income over $550,000 for single filers and around $650,000 for couples.”

Ellis also found a doubling of capital gains tax from 23.4 percent to 43.4 percent for certain taxpayers.

Biden’s plan “creates a second death tax.”

“Assets at death would be taxed on their capital gains at 43.4 percent., Ellis said.

Ahead of the publication of these details, the Foundation for Economic Education said this week that economists have decided that the capital gains increase could destroy the economy.

“Free-market economists warn that the whole economy would be harmed by such a large capital gains increase., Brad Polumbo wrote.

Author: Steven Sinclaire
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Overlooked Blue-Chip Stock Breaks Records

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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
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The World’s 2 Richest Men Go Head-To-Head In New Business

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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
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Bitcoin Reacts To Elon Musk: Chaos Ensues

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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
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Got $1,000?… Consider These High-Tech Gems

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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
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3 Powerful Income Stocks To Buy Now

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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
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