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Janet Yellen Contradicts Biden On Inflation, Hedge Fund Manager Skeptical About Trump's Radical Tax Plan And More: This Week In Economics 2024-06-16 08:56:00+00:00 - Loading... Loading... As the week winds down, let’s take a look back at some of the major stories that shaped the financial world. From warnings about overpriced stocks to debates about inflation and radical tax plans, it was an eventful few days. Here are the highlights: Peter Schiff Sounds the Alarm on Overpriced Stocks Renowned economist and financial commentator, Peter Schiff, has expressed concerns about the current valuation of U.S. stocks, particularly the S&P 500 and other major indices. In a recent podcast, Schiff advised investors to be selective in their investments and hire professionals if they can’t do their own research. Read the full article here. Paul Krugman Reacts to May CPI Data Nobel Prize-winning economist Paul Krugman expressed optimism about the economy's future following the release of the U.S. Bureau of Labor Statistics’ cooler-than-expected Consumer Price Index (CPI) data. Krugman, along with many economists, prefers core inflation data excluding shelter and energy. Read the full article here. See Also: Google Engineer Says Sam Altman-Led OpenAI Set Back AI Research Progress By 5-10 Years: ‘LLMs Have Sucked Kyle Bass Skeptical About Trump’s Radical Tax Plan Founder of Hayman Capital Management, Kyle Bass, expressed doubt over former President Donald Trump’s proposal to replace income tax with import tariffs. Bass argues that the gap between the total volume of imports in the U.S. and the revenue from taxes is too large for the plan to be feasible. Read the full article here. Janet Yellen Contradicts Biden on Inflation U.S. Treasury Secretary Janet Yellen contradicted President Joe Biden's stance on inflation, attributing it to supply and demand rather than corporate greed. Yellen believes that the inflation burst after the pandemic was due to supply constraints and stresses on supply chains. Read the full article here. Harry Dent Predicts ‘Crash Of A Lifetime’ Financial author and economist Harry Dent warned of an impending crash that might surpass the severity of the Great Recession. Dent remains steadfast in his December prediction of the "crash of a lifetime." He highlighted the uniqueness of the current bubble, comparing it to the natural bubble from 1925 to 1929. Read the full article here. Read Next: Trump’s Niece Says Ex-President’s White House Campaign Is Driven By ‘Revenge:’ ‘He Hates All Of America’ Photo by Sharon McCutcheon on Unsplash This story was generated using Benzinga Neuro and edited by Navdeep Yadav.
Toyota shareholders demand vote against chairman Toyoda as automaker embroiled in testing scandal 2024-06-16 03:07:43+00:00 - TOKYO (AP) — Toyota’s chairman Akio Toyoda will be facing some disgruntled shareholders this week, as two major proxy groups demand a vote against keeping the grandson of the founder on its board. The vote expected at the June 18 annual shareholders meeting comes after Toyota apologized recently over fraudulent certification tests for vehicles, a major embarrassment for a company that prides itself on a reputation for excellent quality. The raft of problems at Japanese automakers including Toyota are said not to involve any safety problems and no recalls were announced. But Toyota suspended production of three models produced by group companies in Japan. Toyota’s stock prices had tripled over the last five years to nearly 3,800 yen ($24) before cascading downward amid its latest troubles. Its shares are now trading at above 3,000 yen ($20) — a loss of about 3 trillion Japanese yen ($18 billion) in market value. Institutional Shareholder Services, majority owned by the German capital market company Deutsche Borse Group, which advises investors, said in its proxy report that Toyoda “should be considered ultimately accountable.” It noted his promises for change did not involve reshuffling of the board. While Toyota said it plans to communicate better with workers on the ground, that likely wasn’t enough to prevent a recurrence of problems with cheating on testing, ISS said. “The company’s propensity to preserve its corporate culture is in fact suspected, and Toyoda should be held accountable for that,” it said. ISS is not opposing appointments of other board members, including Toyota Chief Executive Koji Sato, who took up his post in 2023. The past year has brought a flurry of scandals involving improper checks on vehicles, including collision tests, at group companies Daihatsu Motor Co., which makes small models, truckmaker Hino Motors and Toyota Industries Corp., a manufacturer of forklifts and other machinery. Japanese officials say such violations were also found at Honda Motor Co., Mazda Motor Corp. and Suzuki Motor Corp. Another major shareholder, proxy advisory company Glass Lewis & Co. recommended voting against the reappointment of Toyoda and Shigeru Hayakawa, another top executive. “More specifically, we believe that Mr. Toyoda holds responsibility for failing to ensure that the Group maintained appropriate internal controls and for the failure to ensure appropriate governance measures were implemented at Group companies,” it said in its proxy report. “Moreover, given the widespread occurrence of issues throughout the Toyota Group, this further raises questions concerning the corporate culture which has developed under the leadership of Mr. Toyoda.” Hayakawa oversaw appointments of board members, and more independent board members should be added, according to Glass Lewis, which is based in San Francisco. It also recommended voting against a proposal on lobbying by Toyota on climate change, stressing a need for more disclosure. Under Toyoda, the automaker has pushed a “multi-pathway” approach to ecological vehicles, emphasizing hybrids, which have both a gasoline engine and electric motor, and using hydrogen for fuel instead of focusing on battery electric vehicles that some ecologists favor for cutting auto emissions. Toyoda is unlikely to be ousted at the general shareholders’ meeting, to be held at the company’s headquarters in the central Japanese city named after the maker of the Prius hybrid, Lexus luxury models and Camry sedan. The biggest of Toyota’s nearly 1 million shareholders are Japanese companies such as Japanese banks and financial institutions that are unlikely to challenge the automaker. Toyota Industries, a group company, is the No. 2 shareholder. Tightly held cross-shareholdings among affiliates, long the rule in Japan, are gradually unraveling but longstanding loyalties are likely strong enough to keep Toyoda in his post. Last year, he won re-election with nearly 85% of the vote, although that was down from 96% in 2022. In a recent report on Toyota, Kazunori Maki, an auto analyst at SMBC Nikko Securities, noted that the shipments Toyota suspended affected just 1% or 2% of its global sales. He also hinted that factory workers might have skirted rules seen as meticulous but not vital for safety. In the fiscal year ended in March, Toyota’s profits doubled from the previous year, to 4.9 trillion yen ($31.9 billion), exceeding its own projections, as vehicle sales surged and a weak Japanese yen inflated overseas earnings. Even though Toyota has lagged in shifting to EVs, the company is the world’s leading automaker, with sales of 9.4 million vehicles in the fiscal year that ended in March. The company is doing well, said Aaron Ho, an equity analyst at CFRA Research. The recent scandal would make only “a small dent,” he said. “So there are no fundamental issues. We merely think that since production is being halted — for likely a few months, we estimate — deliveries will be affected,” he told The Associated Press. “We really do not see any deterioration in the company’s culture or how the company is being managed.” In his apology over the latest problems, Toyoda referred to how he had faced a massive recall scandal in the U.S., shortly after becoming chief executive in 2009, over what was called “unintended acceleration.” Toyoda was questioned by Congress, and apologized. This time, he appeared to be reassuring himself as well as the public that Toyota had gone through worse, and survived. “We are not a perfect company. But if we see anything wrong, we will take a step back and keep trying to correct it,” he said. ___ Yuri Kageyama is on X: https://twitter.com/yurikageyama
Chinese premier promises more pandas and urges Australia to put aside differences 2024-06-16 02:48:13+00:00 - MELBOURNE, Australia (AP) — Chinese Premier Li Qiang on Sunday promised a new pair of giant pandas to a zoo and urged Australia to set aside its differences with Beijing at the outset of the first visit to the country by China’s second-highest ranking leader in seven years. China’s most powerful politician after President Xi Jinping arrived late Saturday in Adelaide, the capital of South Australia state, which has produced most of the Australian wine entering China since crippling tariffs were lifted in March that had effectively ended a 1.2 billion Australian dollar ($790 million) a year trade since 2020. Li’s trip has focused so far on the panda diplomacy, rebounding trade including wine and recovering diplomatic links after China initiated a reset of the relationship in 2022 that had all but collapsed during Australia’s previous conservative administration’s nine years in power. Relations tumbled over legislation that banned covert foreign interference in Australian politics, the exclusion of Chinese-owned telecommunications giant Huawei from rolling out the national 5G network due to security concerns, and Australia’s call for an independent investigation into the causes of and responses to the COVID-19 pandemic. Beijing imposed an array of official and unofficial trade blocks in 2020 on a range of Australian exports including coal, wine, beef, barley and wood that cost up to AU$20 billion ($13 billion) a year. All the trade bans have now been lifted except for Australian live lobster exports. Trade Minister Don Farrell predicted that impediment would also be lifted soon after Li’s visit with Chinese Commerce Minister Wang Wentao. Foreign Minister Penny Wong said Li’s visit was the result of “two years of very deliberate, very patient work by this government to bring about a stabilization of the relationship and to work towards the removal of trade impediments.” “We will cooperate where we can, we will disagree where we must and we will engage in our national interest,” Wong said before joining Li at Adelaide Zoo, which has been home to China-born giant pandas Wang Wang and Fu Ni since 2009. Li announced that the zoo would be loaned another two pandas after the pair are due to return to China in November. “China will soon provide another pair of pandas that are equally beautiful, lively, cute and younger to the Adelaide Zoo, and continue the cooperation on giant pandas between China and Australia,” Li said in Mandarin, adding that zoo staff would be invited to “pick a pair.” Wong thanked Li for ensuring that pandas would remain the zoo’s star attraction. “It’s good for the economy, it’s good for South Australian jobs, it’s good for tourism, and it is a signal of goodwill, and we thank you,” Wong said. Li’s visit is the first to Australia by a Chinese premier in seven years and marks an improvement in relations since Prime Minister Anthony Albanese’s center-left Labor Party was elected in 2022. Li noted that Albanese in November was the first Australian prime minister to visit China since 2016. “China-Australia relations were back on track after a period of twists and turns,” Li said on arrival on Saturday, according to a translation released by the Chinese Embassy in Australia on Sunday. “History has proven that mutual respect, seeking common ground while shelving differences and mutually beneficial cooperation are the valuable experience in growing China-Australia relations.” Hundreds of pro-China demonstrators, human rights protesters and democracy activists gathered outside the zoo before Li’s visit. Among the protesters was former Hong Kong lawmaker Ted Hui, who fled to Australia three years ago to avoid a prison sentence for his activism. He said the panda offer was a cynical move to soften China’s image and to distract from the government’s human rights failings. “It’s a public relations move by the Chinese regime and, disappointingly, the Australian government is reciprocating by welcoming him and shaking hands,” Hui said. Hui said Li showed cowardice by entering the zoo by a rear entrance while most of the protesters and China supporters had gathered at the main entrance. But Hui and other protesters were able to shout slogans at Li from a distance inside the zoo. Li’s agenda became more contentious after he left Adelaide and arrived in the national capital, Canberra, late Sunday for Parliament House meetings on Monday with Albanese and other political figures. Li will visit a Chinese-controlled lithium processing plant in resource-rich Western Australia state on Tuesday. Albanese has said he will raise with Li recent clashes between the two countries’ militaries in the South China Sea and Yellow Sea that Australia argues endangered Australian personnel. Albanese will also raise the fate of China-born Australian democracy blogger Yang Hengjun, who was given a suspended death sentence by a Beijing court in February. Australia is also concerned for Hong Kong-Australia dual national Gordon Ng, who was among 14 pro-democracy activists convicted by a Hong Kong court last month for national security offenses. Li’s visit to Tianqi Lithium Energy Australia’s processing plant south of the Western Australia capital of Perth will underscore China’s interest in investing in critical minerals. The plant produces battery-grade lithium hydroxide for electric vehicles. Australia shares U.S. concerns over China’s dominance in the critical minerals, which are essential components in the world’s transition to renewable energy sources. Citing Australia’s national interests, Treasurer Jim Chalmers recently ordered five Chinese-linked companies to divest their shares in the rare earth mining company, Northern Minerals. Asked if Chinese companies could invest in processing critical minerals in Australia, Wong replied that Australia’s foreign investment framework was “open to all.” “We want to grow our critical minerals industry,” Wong said. Australia is the second stop of Li’s tour after New Zealand, and will end in Malaysia. ____ AP video producer Caroline Chen and writer Ken Moritsugu in Beijing contributed to this report.
Washington Post Publisher and Incoming Editor Are Said to Have Used Stolen Records in Britain 2024-06-15 22:19:00+00:00 - The publisher and the incoming editor of The Washington Post, when they worked as journalists in London two decades ago, used fraudulently obtained phone and company records in newspaper articles, according to a former colleague, a published account of a private investigator and an analysis of newspaper archives. Will Lewis, The Post’s publisher, assigned one of the articles in 2004 as business editor of The Sunday Times. Another was written by Robert Winnett, whom Mr. Lewis recently announced as The Post’s next executive editor. The use of deception, hacking and fraud is at the heart of a long-running British newspaper scandal, one that toppled a major tabloid in 2010 and led to years of lawsuits by celebrities who said that reporters improperly obtained their personal documents and voice mail messages. Mr. Lewis has maintained that his only involvement in the controversy was helping to root out problematic behavior after the fact, while working for Rupert Murdoch’s News Corporation.
Lynn Conway, Computing Pioneer and Transgender Advocate, Dies at 86 2024-06-15 21:15:48+00:00 - Lynn Conway, a pioneering computer scientist who was fired by IBM in the 1960s after telling managers that she was transgender, despite her significant technological innovations — and who received a rare formal apology from the company 52 years later — died on June 9 in Jackson, Mich. She was 86. Her husband, Charles Rogers, said she died in a hospital from complications of two recent heart attacks. In 1968, after leaving IBM, Ms. Conway was among the earliest Americans to undergo gender reassignment surgery. But she kept it a secret, living in what she called “stealth” mode for 31 years out of fear of career reprisals and concern for her physical safety. She rebuilt her career from scratch, eventually landing at the fabled Xerox PARC laboratory, where she again made important contributions in her field. After she publicly disclosed her transition in 1999, she became a prominent transgender activist.
Trump's Birthday Speech On Tax Cuts, Immigrants Raises Eyebrows: 'Our Country Has Never Been In Danger Like It Is In Danger Right Now' 2024-06-15 21:10:00+00:00 - Loading... Loading... Donald Trump used his 78th birthday celebration on Friday to pledge deeper tax cuts should he win the upcoming U.S. election on Nov. 5. He also made ambiguous forecasts about potential future attacks on U.S. soil following the arrest of Tajik nationals suspected of having ties to ISIS, Reuters reported. Check This Out: Former Top General Sounds Alarm On Rising ISIS Threat To US, Bemoans Biden’s Afghanistan Withdrawal ISIS, or the Islamic State of Iraq and Syria, is designated as a terrorist organization by the U.S. government. Addressing thousands of supporters at a convention center in West Palm Beach, Florida, the Republican candidate pledged to continue reducing the corporate tax rate that he had previously lowered during his presidency. Read Next: Trump’s Plan To Kill Income Taxes Whiffs, Critics Say: ‘It’s A Sure Way To Hit Low- And Middle-Income Americans’ Additionally, he promised to deliver tax relief to the middle class. Trump, engaged in a tight rematch with President Joe Biden, did not offer detailed specifics. During his presidency, Trump reduced the corporate tax rate from 35% to 21% and introduced various other tax cuts set to expire next year, Reuters added. “I want to make them permanent, and then I’m going to reduce taxes by still more,” Trump said, without presenting a strategy to make up for the potential reduction in revenue. “I want to get it down still further, and especially for the middle income people.” Trump, known for his tough stance on immigration during his administration, also reiterated his criticism of Biden’s efforts to reduce illegal crossings into the U.S. See This: Trump Wants Immigrants From ‘Nice Countries’ Like Denmark And Switzerland Over Nations ‘That Are A Disaster’ He pointed to the recent arrests of eight individuals from Tajikistan in New York, Los Angeles and Philadelphia. According to a source familiar with the investigation, these individuals were suspected of having ties to the extremist group ISIS, Reuters added. “Our country has never been in danger like it is in danger right now,” Trump claimed, adding, without providing evidence, that thousands of terrorists were entering the United States. “Our country is going to pay a steep price for many, many years.” Read Next: Benzinga Bulls And Bears: GameStop, Apple, Tesla, Bitcoin And Raoul Pal’s Dogecoin ETF Prediction Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Shutterstock
Donald Trump's Planned Visit To Black Church In Detroit Draws Backlash From Critics Who Say He Didn't Do Enough As President 2024-06-15 20:34:00+00:00 - Loading... Loading... Donald Trump, the Republican presidential candidate, will reportedly visit Detroit for a roundtable discussion at a Black church, aiming to sway Black voters from President Joe Biden before the November election. The planned visit has sparked strong opposition from local Democrats and the Biden campaign, which cited Trump’s minimal efforts to improve conditions for Black communities while he was president, Reuters reported. Check This Out: Donald Trump Claims Mug Shot, Indictments Could Appeal To Black Voters, Sparks Controversy Ahead of South Carolina Primary: ‘That’s Why The Black People Like Me’ In the past, Trump has criticized Detroit as “corrupt,” yet both he and Biden view Michigan as crucial for victory, with the state’s vote expected to be as tight as or tighter than in 2016, Reuters added. Detroit, a Black-majority city, holds significant sway over the electoral results in Michigan. Despite some areas experiencing economic revival, many neighborhoods still grapple with systemic inequalities and long-standing neglect. Experts emphasize that inflation and economic concerns have weighed heavily on voters’ minds, according to Reuters. Last month, Trump held a rally in the South Bronx, aiming to attract Black and Hispanic voters by highlighting concerns over cost-of-living and immigration. Also See: Trump Attempts To Court Black And Latinx Voters In South Bronx Campaign Rally, Blames Migrants For Economic Struggles His campaign believes there’s an opportunity among economically struggling voters, particularly men. Trump claimed, without evidence, that illegal migration disproportionately harms voters of color. In February, Trump faced criticism for suggesting that Black voters were more supportive of him due to his legal troubles. His claims of victimization by the justice system have resonated poorly with many Black voters, who argue that African Americans are disproportionately affected by unfairness in the criminal justice system, Reuters noted. Read Also: ‘I See Them Identifying With Trump,’ Says 50 Cent About Black Men Drifting Toward Ex-President In 2024 Election Trump has also faced backlash for making inflammatory and racist remarks over the years. Following the 2020 election, he labeled Detroit and Philadelphia as “two of the most corrupt political places” in the country, Reuters noted. Read Next: Is Bitcoin Pricey At Current Levels? ‘Rich Dad, Poor Day’ Author Robert Kiyosaki Says King Crypto ‘Not High As It’s Going To Go’ Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Shutterstock
MarketBeat Week in Review – 6/10 - 6/14 2024-06-15 11:00:00+00:00 - Markets pulled back to end the week, but this comes after the S&P 500 set a new high on Thursday. After the Fed's decision to hold interest rates at their current level, investors appear more than ready to climb the wall of worry built on higher-for-longer interest rates and lingering concerns about the possibility of a recession. However, without confirmation of weakness from the economic data, this pullback may simply be a pause before markets take the next leg higher. Investors expect corporate earnings to increase over the next 12 months despite concerns about higher-for-longer interest rates and whether that may lead the economy into recession. It will be another few weeks before the second quarter earnings start coming in. The market may take a breather before then. But firm predictions in this market usually turn out to be wrong. The one prediction you can take to the bank is that the MarketBeat team of analysts will follow the stocks and stories moving the market. Here are some of the most popular articles from this week. Get Ambarella alerts: Sign Up Articles by Jea Yu As part of our Learn series, Jea Yu helped traders and investors understand the significance of the Bull Flag pattern. This common technical indicator helps provide precise entry and exit points. If you're looking to become a more profitable trader, you should read Jea's clear explanation of identifying and trading bull flags. Yu also wrote about Ambarella Inc. NASDAQ: AMBA. The chip maker has a leadership position in artificial intelligence (AI) at the edge. Yu explains why the company should have ample opportunity to expand its leadership position as the applications for its semiconductor chips will only continue to expand. Chip stocks continue to draw investors' interest, but the recent earnings report from Marvell Technology Inc. NASDAQ: MRVL shows that some stocks are priced for perfection. Yu explains the good, the bad, and the ugly factors causing MRVL stock to sink lower. Articles by Thomas Hughes If you're looking for companies that will define the future of AI, Thomas Hughes explains why you should take a close look at the metaverse. Hughes gives investors three stock picks of companies taking the lead in developing products and services leading the metaverse revolution. Hughes was also hunting for dividend stocks, and it seems investors were, too, as two separate articles were among our most viewed this week. In one article, Hughes discusses four companies with the fastest-growing dividend distributions among stocks in the S&P 500 and explains why a company's ability to increase its dividend annually is an important metric of fundamental health. For many dividend investors, however, the yield is the most important thing. Hughes uses MarketBeat tools to highlight three high-yield dividend stocks that are getting upgraded by analysts. Articles by Chris Markoch The GameStop Inc. NYSE: GME frenzy sprung up from the sub-Reddit community known as WallStreetBets. This week, Chris Markoch looked at three WallStreetBets stocks that have received a lot of attention from members over the past month, showing that this community is not just about fly-by-night meme stocks. Markoch also wrote about how investors may want to approach Palantir Technologies Inc. NYSE: PLTR after the company was not promoted to the S&P 500 index this month. Traders may find it difficult to justify the high valuation of PLTR stock. However, the company's long-term thesis is the same, meaning that it may be okay to average into a long position. With investors expecting a rate cut in late 2024 or early 2025, high-yield dividend stocks are a good choice for income now and growth later. That's the premise behind Markoch's article, in which he picks three high-yield dividend stocks that should get a tailwind from lower interest rates. Articles by Ryan Hasson Stimulus money continues to flow into the economy due to the Infrastructure Act passed by Congress in 2021. That's been bullish for industrial stocks that are benefiting from new and expanded projects. This week Ryan Hasson highlighted three industrial stocks that are outperforming the benchmark Industrial Select Sector SPDR Fund NYSE: XLI. You would think that a company with AI in its name would be among the leaders in artificial intelligence stocks. That hasn't been the case for C3.ai NYSE: AI, but that could change. Hasson explains why AI stock is rising as the company's pre-built AI models are sought after for the next stage of the AI revolution. You don't have to be a fan of Roaring Kitty to understand the upside potential that can come from a short squeeze. MarketBeat has tools that let you track stocks with high short interest that could be ripe for a short squeeze. Ryan Hasson highlights four stocks with high short interest with the added benefit of being large-cap stocks. Articles by Gabriel Osorio-Mazilli Since Chipotle Mexican Grill Inc. (NYSE; CMG) announced a whopping 50-for-1 stock split, investors have speculated on which companies may be next. Many didn't see NVIDIA Corp. NASDAQ: NVDA coming, but Broadcom Inc. NASDAQ: AVGO was one of the stocks mentioned. That prediction came true this week, and Gabriel Osorio-Mazilli highlights what's next for the chip maker. Walmart Inc. NYSE: WMT has been a strong performer as an inflation hedge. And as Osorio-Mazilli notes, analysts continue to reward WMT stock by raising its valuation. And if you're looking for a meme stock that may be worth investing in, Osorio-Mazilli made a case for why Robinhood Markets Inc. NASDAQ: HOOD is shaking off its naysayers and showing why institutional investors and analysts believe the stock could continue to deliver market-beating growth for the rest of 2024. Before you consider Ambarella, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ambarella wasn't on the list. While Ambarella currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
FAA probing suspect titanium parts used in some Boeing and Airbus jets 2024-06-15 00:53:00+00:00 - FAA investigates possible use of counterfeit titanium in planes, and other top headlines Federal transportation officials are investigating how titanium sold with phony documentation made its way into parts used in making Boeing and Airbus planes. The Federal Aviation Administration and Spirit AeroSystems, a supplier of fuselages to Boeing and wings for Airbus, said Friday they are each investigating the scope and impact of the issue, which could raise potential concerns about aircraft safety. First reported by the New York Times, the problem came to light after a parts supplier found tiny holes from corrosion in the titanium, according to the newspaper. "Boeing reported a voluntary disclosure to the FAA regarding procurement of material through a distributor who may have falsified or provided incorrect records," the agency said in a statement. "Boeing issued a bulletin outlining ways suppliers should remain alert to the potential of falsified records." Spirit said it is working to determine the origin of the titanium and that it removed the affected parts from the company's production line for testing. "This is about titanium that has entered the supply system via documents that have been counterfeited," Spirit spokesperson Joe Buccino said in a statement. "When this was identified, all suspect parts were quarantined and removed from Spirit production. More than 1,000 tests have been completed to confirm the mechanical and metallurgical properties of the affected material to ensure continued airworthiness." Planes with parts containing the suspect material were made between 2019 and 2023, and include some Boeing 737 Max and 787 Dreamliner airliners as well as Airbus A220 jets, according to the Times, which cited three people familiar with the matter. An employee at a Chinese company that sold the titanium had forged information on documents certifying the origin of the material, and where it came from remains murky, according the Times' sources. Boeing said its tests of the materials in question had not yielded any evidence of a problem. The issue affects a small number of parts on Boeing airplanes, according to the aircraft manufacturer. Boeing said it buys most of the titanium it uses in aircraft production directly, and that supply is not impacted. "This industrywide issue affects some shipments of titanium received by a limited set of suppliers, and tests performed to date have indicated that the correct titanium alloy was used. To ensure compliance, we are removing any affected parts on airplanes prior to delivery. Our analysis shows the in-service fleet can continue to fly safely." Airbus said it was aware of the issue and that numerous tests had been performed on parts from the same supplier. "They show that the A220's airworthiness remains intact," a company spokesperson said in a statement. "The safety and quality of our aircraft are our most important priorities. and we are working in close collaboration with our supplier." The development comes after a slew of safety issues for the aviation industry this year, including an alarming in-flight incident in January in which a door panel blew off a Boeing 737 Max 9 jet operated by Alaska Airlines. Boeing in April also informed the FAA about another incident involving potentially falsified inspection records related to the wings of 787 Dreamliner planes, saying it would need to reinspect some planes still in production. —CBS News' Kathryn Krupnik and Kevin McCarron contributed to this report.
Here are the most and least affordable major cities in the world 2024-06-14 23:50:00+00:00 - Pittsburgh is well-known for its steel industry and for bringing ketchup to the French fry-loving masses. As it turns out, it is also one the most affordable places in the world, according to a new study. In a report on international housing affordability by Chapman University and Frontier Centre for Public Policy, a Canadian think tank, Pittsburgh earned the title of most affordable among 94 major metropolitan areas in eight countries. Researchers based their ranking on median home price and median household income data from 2022. Using a metric in the housing sector known as the price-to-income ratio, researchers divided the median home price of a community by the median household income of its residents to determine an affordability score for each city in the study. Cities with scores above 9 are considered "impossibly unaffordable" for residents. Pittsburgh earned a 3.1 score while Rochester and St. Louis both received a 3.4. In cities like Charlotte, North Carolina; Boise, Idaho and Phoenix, home prices spiked dramatically after the pandemic and took months to cool down. But that same trend did not happen in Pittsburgh, Michael Reed real estate agent for Coldwell Banker Realty told CBS MoneyWatch, adding that home prices in the city have remained steady in recent years. Steady home prices, combined with solid incomes in the health care and technology sector, have kept Pittsburgh affordable, Reed said, though prices could eventually rise as aging residents outbid with younger buyers on smaller houses. "A lot of our older population is downsizing and that group tends to be cash heavy and they fare better on the market than our younger, newer buyers," Reed said. "So that could begin pushing our prices up." The median home sale price in Pittsburgh was $235,000 as of May, down nearly 8% from a year ago, according to online real estate brokerage Redfin. Throughout most of the country, the housing market has been tough sledding for both buyers and sellers this year as home prices reach record highs and mortgage rates hover around 7%. The median U.S. home price hit an all-time high last week of $394,000, up 4.4% from a year ago, according to Redfin. Home prices rising faster than income worldwide To be sure, rising home prices are not a uniquely American issue, said Wendell Cox, the study's author. "For decades, home prices generally rose at about the same rate as income, and homeownership became more widespread," Cox said in the study. "But affordability is disappearing in high-income nations as housing costs now far outpace income growth. The crisis stems principally from land use policies that artificially restrict housing supply, driving up land prices and making homeownership unattainable for many." Despite those issues, the U.S. is home to nine of the 10 most affordable cities in the Chapman study. Conversely, five U.S. cities ranked among the study's top 10 least affordable cities. Hong Kong is the world's least affordable city, with a score of 16.7. Sydney, Australia, is a distant second with 13.3, followed by Vancouver with 12.3. Here are the most affordable major cities in the world, according to the Chapman study: 1. Pittsburgh (U.S.) 2. Rochester, New York (U.S.) 3. St. Louis (U.S.) 4. Cleveland (U.S.) 5. Edmonton, Alberta (Canada) 6. Buffalo, New York (U.S.) 7. Detroit (U.S.) 8. Oklahoma City (U.S.) 9. Cincinnati (U.S.) 10. Louisville, Kentucky (U.S.) Here are the least affordable major cities in the world, according to the Chapman study: 1. Hong Kong (China) 2. Sydney, New South Wales (Australia) 3. Vancouver, British Columbia (Canada) 4. San Jose, California (U.S.) 5. Los Angeles (U.S.) 6. Honolulu (U.S.) 7. Melbourne, Victoria (Australia) 8. San Francisco (U.S.) 9. Adelaide, South Australia (Australia) 10. San Diego (U.S.)
Waffle House servers are getting a raise — to $3 an hour 2024-06-14 23:02:00+00:00 - Waffle House CEO Joe Rogers III says the restaurant chain is making its "single largest additional investment in our workforce" in its 68-year history by hiking base pay for servers to three bucks an hour. The raises take effect this month and follow a more than year-long campaign led by a union that represents service workers in the South. The effort involved strikes and petitions calling for higher pay, safer working conditions and an end to mandatory paycheck deductions for meals. Waffle House's base pay — excluding tips — will increase to at least $5.25 an hour for all of the company's 2,000 locations by June 2026, with additional increases based on seniority and shifts, Rogers said in a video to employees. Many restaurants around the U.S. offer what is known as the "tipped minimum wage." Under labor law, they can offer as little as $2.13 an hour if that amount combined with tips at least matches the federal minimum wage of $7.25 an hour, where it has stood since 2009. Waffle House is not changing its policy that has servers keeping their own gratuities, as it would be "crazy to go down the road of service charges instead of tips," said Rogers, who also discarded the idea of pooling tips. Rogers also said Waffle House will seek to offset the additional labor costs by raising its menu prices, noting that patrons at the chain's urban locations would be among those charged more. The company has not unveiled any actions to respond to workers' other concerns, including safety, particularly at locations that are open 24/7 and have been known to draw disorderly patrons. In April. a brawl at a Waffle House near Ohio State University's campus led to a shooting that killed one man, while in February an early morning shooting at a Waffle House in Indianapolis killed one person and wounded five more. Waggle House didn't immediately respond to a request for comment. Privately held Waffle House operates about 2,000 locations, including hundreds in Georgia, where the company is based. Some states have moved to lift the pay of restaurant workers, who are more likely to live in poverty than employees in other fields. In April, for example, the minimum wage for most fast-food workers in California rose to $20 per hour, the highest base across the U.S. restaurant industry. Prior to the California pay hike, the highest paid fast-food workers in the U.S. were in Washington State, which has a minimum wage of $16.28 per hour.
Micro communities offer homeless Americans safe shelter in growing number of cities 2024-06-14 20:19:00+00:00 - Micro community opens in Overland Park neighborhood Micro community opens in Overland Park neighborhood 01:56 In a dreary part of downtown Atlanta, shipping containers have been transformed into an oasis for dozens of previously unsheltered people who now proudly call a former parking lot home. The gated micro community known as "The Melody" doesn't look like a parking lot anymore. Artificial turf is spread across the asphalt. Potted plants and red Adirondack chairs abound. There's even a dog park. The shipping containers have been divided into 40 insulated studio apartments that include a single bed, HVAC unit, desk, microwave, small refrigerator, TV, sink and bathroom. On a recent afternoon, a half-dozen residents were chatting around a table in The Melody's smoking area. The gated micro community known as "The Melody" is a housing complex made from shipping containers. John Bazemore / AP "I'm just so grateful," said Cynthia Diamond, a 61-year-old former line cook who uses a wheelchair and used to be chronically homeless. "I have my own door key. I ain't got to worry about nobody knocking on my door, telling me when to eat, sleep or do anything. I'm going to stay here as long as the Lord allows me to stay here." Faced with years of rising homelessness rates and failed solutions, city officials across the U.S. have been embracing rapid housing options emphasizing three factors: small, quick and cheap. Officials believe micro communities, unlike shelters, offer stability that, when combined with wraparound services, can more effectively put residents on the path to secure housing. Sprouting across nation Denver has opened three micro communities and converted another five hotels for people who used to be homeless. In Austin, Texas, there are three villages of "tiny homes." In Los Angeles, a 232-unit complex features two three-floor buildings of stacked shipping containers. "Housing is a ladder. You start with the very first rung. Folks that are literally sleeping on the ground aren't even on the first rung," said Denver Mayor Mike Johnston, sitting in one of the city's new micro communities that offer tiny, transitional homes for that first rung. More than 1,500 people have been moved indoors through the program, with over 80% still in the housing as of last month, according to city data. The inexpensive units are particularly a boon for cities with high housing costs, where moving that many people directly into apartments wouldn't be financially feasible. Both Atlanta's and Denver's program act as a stepping stone as they work to get people jobs and more permanent housing, with Denver aiming to move people out within six months. That includes Eric Martinez, 28, who has been in limbo between the street and the bottom rung for most of his life. At birth Martinez was flung into the revolving door of foster care, and he's wrestled with substance use while surfing couches and pitching tents. Eric Martinez, 28, who has wrestled with substance abuse most of his life, was directed into a micro community after his Denver tent encampment was swept by the city. Thomas Peipert / AP "It's kind of demeaning, it makes me feel less of a person," said Martinez, his eyes downcast. "I had to get out of it and look out for myself at that point: It's fight or flight, and I flew." Martinez's Denver tent encampment was swept and he along with the others were directed into the micro communities of small cabin-like structures with a twin bed, desk and closet. The city built three such communities with nearly 160 units total in about six months, at roughly $25,000 per unit, said Johnston. The 1,000 converted hotel units cost about $100,000 each. On site at the micro community are bathrooms, showers, washing machines, small dog parks and kitchens, though the Salvation Army delivers meals. The program represents an about-face from policies that for years focused on short-term group shelters and the ceaseless shuffle of encampments from one city block to the next. That system made it difficult to keep people who were scattered through the city connected to services and on the path to permanent housing. Martinez sits outside his room, one of the micro community's160 small, cabin-like structures equipped with a twin bed, desk and closet. Thomas Peipert / AP Those services in Denver's and Atlanta's micro communities are largely centralized. They offer residents case management, counseling, mental health and substance abuse therapy, housing guidance and assistance obtaining anything from vocational skills training to a new pair of dentures. "We're able to meet every level of the hierarchy of needs — from security and shelter, all the way up to self-actualization and the sense of community," said Peter Cumiskey, the Atlanta site clinician. The Melody, and projects like it, are a "very promising, feasible and cost-effective way" to tackle homelessness, said Michael Rich, an Emory University political science professor who studies housing policy. Rich noted that transitional housing is still just the first step toward permanent housing. The programs in Denver and Atlanta, taking inspiration from similar ones in cities like Columbia, South Carolina, and Savannah, Georgia, offer a degree of privacy and security not found in congregate shelters or encampments. Giving each resident their own bathroom and kitchen is a crucial feature that helps set The Melody apart, said Cathryn Vassell, whose nonprofit, Partners For Home, oversees the micro community. Aside from a prohibition on overnight guests, staff emphasize the tenants are treated as independent residents. Vassell acknowledged it's unclear how long the containers will last — she's hoping 20 years. But, she said, they were the right choice for The Melody because they were relatively inexpensive and already had handicap-accessible bathrooms since many were used by Georgia hospitals during the COVID-19 pandemic. The project, which took only about four months to complete, cost about $125,000 per unit — not "tremendously inexpensive," Vassell said, but less than traditional construction, and much quicker. Staffing and security operations cost about $900,000 a year. City officials look to expand rapid housing The Melody is the first part of Atlanta Mayor Andre Dickens' target of supplying 500 units of rapid housing on city-owned land by December 2025. A 2023 "point-in-time" count found there were 738 unsheltered people in Atlanta, far fewer than many cities, but still an increase over the previous year. "We need more Melodies as fast as possible," said Courtney English, the mayor's chief policy officer. Few objected when The Melody was announced last year, but as city officials seek to expand the rapid-housing footprint, they know local pushback is likely. That's what Denver faced. Mayor Johnston said he attended at least 60 town halls in six months as Denver tried to identify locations for the new communities and faced pushback from local residents worried about trash and safety. "What they are worried about is their current experience of unsheltered homelessness," Johnston said. "We had to get them to see not the world as it used to exist, but the world as it could exist, and now we have the proof points of what that could be." Prepped for a move at a moment's notice The scars of life on the street still stick with Martinez. All his belongings are prepped for a move at a moment's notice, even though he feels secure in his tiny home alongside his cat, Appa. The community has been "very uplifting and supporting," he said, pausing. "You don't get that a lot." On his wall is a calendar with a job orientation penciled in. The next step is working with staff to get a housing voucher for an apartment. "I'm always looking down on myself for some reason," he said. But "I feel like I've been doing a pretty good job. Everyone is pretty proud of me."
You may owe the IRS money on Monday — skipping payment could cost you hundreds of dollars 2024-06-14 20:00:00+00:00 - Yellen says increased IRS audits to focus on the very wealthy Yellen says increased IRS audits to focus on the very wealthy 02:39 Some taxpayers may not be aware that they owe the IRS a check on Monday, which could lead to their owing the agency a chunk of change come next April. More Americans are getting caught up by the issue, which involves quarterly estimated taxes, or payments made to the IRS throughout the year on income that isn't subject to withholding. People who are paid by an employer typically have their federal, state and payroll taxes withheld directly from their paychecks. But millions of Americans today earn extra money as self-employed workers or through their own businesses, where taxes aren't deducted. In those cases, taxpayers are required to send the IRS their estimated tax payments on a quarterly basis, with the next due date falling on June 17. The IRS says that taxpayers who are employed can also sidestep the issue by asking their employer to withhold more money from their paychecks, but of course that depends on workers first being aware that they might owe additional taxes. "Taxes are pay-as-you-go, to be paid as income is earned, during the year," the IRS said in a notice earlier this month about the June 17 payment deadline. In other words, regardless of whether you earn money through a paycheck or a side gig, you're required to settle up with the IRS regularly throughout the year, either via paycheck withholding or quarterly estimated taxes. And here's the thing: Skipping that step can lead to fines and penalties if you wait until April 15 of the following year to pay up. The number of Americans who are subject to estimated taxes is rising, with IRS data showing that 14 million individuals sent quarterly payments to the tax agency in 2023. That's up 16% from 2022, when about 12.1 million people paid the quarterly tax. Driving that increase is the growing number of people who do gig work or who have started their own businesses. A record 64 million Americans earned money through freelance work in 2023, a jump of 4 million from the prior year, according to an analysis from Upwork. Higher penalties Failing to pay estimated taxes can result in underpayment penalties, which have grown stiffer in recent years. That's because the IRS charges interest, based on the federal short-term rate, on the amount that people underpaid — and that finance charge has spiked due to the Federal Reserve's rate hikes since 2022. The IRS' current penalty assesses an 8% interest charge for underpayments, compared with 3% in 2021, when the Fed's benchmark rate was close to zero. In 2023, the average penalty for underpayment jumped to $500 per person, up from about $150 in 2022, IRS data shows. Who owes quarterly payments? Generally, freelancers, gig workers and people who own small businesses via sole proprietorships, partnerships and S corporations must make quarterly estimated tax payments if they believe they'll have a tax liability of at least $1,000 when they file. Others may also be on the hook, though, including investors who sell assets like stocks or bonds throughout the year, according to Fidelity (Taxpayers can use this IRS online tool to determine whether they might owe quarterly taxes.) Aside from June 17, the additional two payment dates for the current tax year fall on September 16 and Jan. 15, 2025. (The first quarterly estimated tax deadline for 2024 was on April 15.) Taxpayers can make payments online from their checking or savings account via an online account for individuals or IRS Direct Pay, or can use IRS.gov/payments or the IRS2Go app for credit or debit card payments.
FDA "inadvertently archived" complaint about Abbott infant formula plant, audit says 2024-06-14 18:58:00+00:00 - FDA reporting another infant formula recall FDA reporting another infant formula recall 00:26 The Food and Drug Administration "inadvertently archived" a whistleblower's complaint regarding conditions at an Abbott Nutrition plant that produced powdered baby formula recalled in 2022 due to bacteria that killed two infants, an audit shows. An early 2021 email raised red flags about the plant in Sturgis, Michigan, that became the focal point of a nationwide shortage of infant formula when it was temporarily shuttered the following year. An FDA employee "inadvertently archived" the email, which resurfaced when a reporter requested it in June 2022, the U.S. Department of Health and Human Services Office of Inspector General said Thursday in a report. "More could have been done leading up to the Abbott powdered infant formula recall," noted the auditor. It took 102 days for the FDA to inspect the plant after getting a separate whistleblower complaint in October 2021. During those months, the FDA received two complaints, one of an illness and the second a death, of infants who consumed formula from the facility. Yet samples tested negative for Cronobacter sakazakii, the bacteria in question. Several infants were hospitalized and two died of a rare bacterial infection after drinking the powdered formula made at Abbott's Sturgis factory, the nation's largest. The FDA closed the plant for several months beginning in February 2022, and well-known formulas including Alimentum, EleCare and Similac were recalled. FDA inspectors eventually found violations at the factory including bacterial contamination, a leaky roof and lax safety practices, but the agency never found a direct connection between the infections and the formula. The FDA concurred with the report's findings, but noted it was making progress to address the issues behind delays in processing complaints and testing factory samples. Dr. Steven Abrams, a pediatrics professor at the University of Texas at Austin, agreed with the report's recommendations, including that Congress should empower the FDA to require manufacturers to report any test showing infant formula contamination, even if the product doesn't leave the factory. "Like anything else, there were mistakes made. But the government is working very hard, including the FDA. It's fixing the gaps that existed," Abrams told the Associated Press. "People have to be comfortable with the safety of powdered infant formula." Separately, recalls of infant formula from varied sources have continued. In January, 675,030 cans of Reckitt/Mead Johnson Nutrition's infant formula sold in the U.S. were recalled after health authorities confirmed cronobacter was found in cans imported into Israel from the U.S. More recently, a Texas firm earlier this month expanded its recall of Crecelac, a powdered goat milk infant formula, after finding a sample contaminated with cronobacter. —The Associated Press contributed to this report.
Top 5 High-Performance Cryptocurrency ETFs to Watch 2024-06-14 16:46:00+00:00 - The cryptocurrency market has experienced remarkable growth, rewarding investors with its potential. Bitcoin surged by approximately 168%, Ethereum advanced by around 66%, and Solana, a relative newcomer, soared over 100% in the past year. While these returns are undeniably attractive, direct investment in individual cryptocurrencies presents challenges for many investors due to inherent volatility and complexity. For those seeking more structured exposure, cryptocurrency-based electronically traded funds (ETFs) offer a compelling alternative, providing diversification, professional management, and relative ease of access. Get CRPT alerts: Sign Up Understanding the Mechanics of Cryptocurrency ETFs An exchange-traded fund (ETF) is an investment fund that holds a basket of assets, such as stocks, bonds, or commodities. It trades on a stock exchange, just like individual company stocks. ETFs offer investors numerous benefits, making them popular for accessing various market segments. Cryptocurrency ETFs provide a means to gain diversified exposure to the asset class without directly purchasing and managing individual digital assets. This diversification helps mitigate risk compared to investing in a single cryptocurrency. Additionally, ETFs are managed by professional portfolio managers who employ active or passive strategies to navigate the complexities of the crypto market. ETFs also provide investors with liquidity, enabling easy buying and selling on stock exchanges. Additionally, they offer transparency, as their holdings are publicly disclosed, giving investors insight into the underlying assets of the ETF. Analyzing 5 High-Performing Cryptocurrency ETFs The increasing interest in cryptocurrency ETFs has led to the emergence of a diverse range of funds, each with its unique approach to navigating this dynamic market. While all cryptocurrency ETFs offer diversification benefits, not all funds are created equal. Five high-performing ETFs, in particular, have garnered significant attention from investors seeking compelling performance and strategic exposure. First Trust SkyBridge: Understanding the Benefits and Risks of CRPT The First Trust SkyBridge Crypto Industry and Digital Economy ETF NYSEARCA: CRPT is an actively managed ETF seeking capital appreciation by investing in companies driving innovation within the cryptocurrency industry and digital economy. Sub-advised by SkyBridge Capital, a recognized leader in crypto investing, CRPT's portfolio offers diversified exposure across various segments of the digital asset ecosystem. Top holdings include MicroStrategy Incorporated NASDAQ: MSTR, a business intelligence company with substantial Bitcoin investments; Coinbase Global, Inc. NASDAQ: COIN, a prominent cryptocurrency exchange; and Marathon Digital Holdings, Inc. NASDAQ: MARA, a Bitcoin mining company along with other top cryptocurrency stocks. First Trust SkyBridge Crypto Industry and Digital Economy ETF Today CRPT First Trust SkyBridge Crypto Industry and Digital Economy ETF $13.88 -0.19 (-1.35%) 52-Week Range $4.60 ▼ $15.00 Dividend Yield 0.02% Assets Under Management $62.61 million Add to Watchlist CRPT's actively managed approach, coupled with its focus on high-growth companies, offers the potential for strong returns but comes with the risk of higher volatility compared to passively managed ETFs. The fund's expense ratio is 0.85%, CRPT has a market capitalization of $61.51 million, and assets under management of $62.61 million. Performance-wise, CRPT has returned 191.91% over the past year and 45.50% year-to-date. Analyst ratings aggregate to a "Moderate Buy" with a price target of $15.98, representing a potential 14.30% upside from its current price. Valkyrie: Key Considerations for Bitcoin and Ether Strategy ETF Valkyrie Bitcoin and Ether Strategy ETF NASDAQ: BTF is an actively managed fund that focuses on future contracts between Bitcoin and Ethereum. Futures contracts are agreements to buy or sell an asset at a predetermined price at a future date. BTF's strategy involves investing in these contracts, allowing the fund to potentially benefit from price movements in Bitcoin and Ethereum without directly holding the underlying cryptocurrencies. Valkyrie Bitcoin Strategy ETF Today BTF Valkyrie Bitcoin Strategy ETF $19.60 -0.40 (-2.00%) 52-Week Range $9.33 ▼ $23.25 Dividend Yield 11.33% Assets Under Management $52 million Add to Watchlist This approach carries its own set of considerations. Futures contracts can amplify volatility, both on the upside and downside. While BTF has delivered strong performance, up 100% in the past year and 28% in the past six months, investors should be aware that futures-based strategies can be more complex and carry a higher degree of risk. BTF also has a low liquidity rating due to its smaller asset size, meaning that it may be more challenging to buy or sell shares of the fund. The fund has $52 million under management compressed into three holdings, adding a small amount of risk. Notably, BTF offers an impressive 11.11% dividend yield, significantly exceeding the ETF average of 2.5%. This strong dividend, driven by the performance of its Bitcoin and Ether futures contracts, makes BTF an appealing option for income-seeking investors within the crypto space. However, it's important to remember that dividend yields can fluctuate and are not guaranteed. Grayscale Digital: Investing in Large-Cap Cryptocurrencies with GDLC Grayscale Digital Large Cap Fund ETF OTCMKTS: GDLC is a passively managed ETF that tracks an index of large-cap cryptocurrencies. It offers investors broad exposure to the leading digital assets by market capitalization. GDLC has a significant weighting towards Bitcoin (70%), reflecting the cryptocurrency's dominance in the market. The fund's remaining holdings include Ethereum (23%), Solana, Ripple, and Avalanche, providing a degree of diversification. Grayscale Digital Large Cap Fund Today GDLC Grayscale Digital Large Cap Fund 22.88 -1.62 (-6.61%) 52-Week Range 5.62 ▼ 27.49 Add to Watchlist GDLC's performance has been impressive, gaining 317% in the past year and nearly 40% in the past six months. This strong track record and its passive index-tracking approach make GDLC a popular choice for investors seeking straightforward exposure to large-cap cryptocurrencies. However, it's important to note that GDLC has a relatively high expense ratio of 2.50%. Furthermore, GDLC is traded on the OTC market, presenting its own risks. These risks include lower liquidity, wider bid-ask spreads, and potentially less regulatory oversight than exchanges like the NYSE or Nasdaq. Investors should consider these factors and the general volatility of cryptocurrencies before investing in GDLC. Grayscale Bitcoin Trust ETF Market Insights The Grayscale Bitcoin Trust ETF NYSEARCA: GBTC is a passively managed exchange-traded fund designed to expose investors directly to Bitcoin's price movements. Its passive investment strategy replicates Bitcoin's performance, making it a straightforward investment vehicle for those seeking Bitcoin exposure without actively managing their holdings. Grayscale Bitcoin Trust Today GBTC Grayscale Bitcoin Trust $58.18 -0.96 (-1.62%) 52-Week Range $12.86 ▼ $65.61 Add to Watchlist GBTC boasts a substantial market capitalization of $30.34 billion and has a history of strong trading volume, averaging 13.52 million shares, ensuring high liquidity for investors. Despite its strong one-year performance of 345.78% and ease of trading, GBTC carries a net expense ratio of 1.50%, higher than the average for an ETF. Institutional investors have shown significant interest in GBTC, with 266 institutional buyers contributing to a total inflow of $689.42 million over the past year, compared to minimal outflows. This substantial institutional interest further highlights the ETF's appeal as a prominent vehicle for accessing the Bitcoin market. Bitwise Crypto Industry Innovators ETF Performance Metrics The Bitwise Crypto Industry Innovators ETF NYSEARCA: BITQ is a passively managed ETF designed to track the Bitwise Crypto Innovators 30 index. This index comprises a modified market-cap-weighted portfolio of global companies actively engaged in developing and supporting a decentralized economy enabled by crypto assets. Bitwise Crypto Industry Innovators ETF Today BITQ Bitwise Crypto Industry Innovators ETF $13.89 +0.08 (+0.58%) 52-Week Range $6.17 ▼ $14.20 Dividend Yield 0.00% Assets Under Management $145.50 million Add to Watchlist The fund's primary investment objective is to mirror the performance of the underlying index, providing investors with broad exposure to the crypto industry ecosystem. BITQ holds a diversified portfolio of 36 companies, with its top holdings concentrated in prominent names such as MicroStrategy, Coinbase Global, Core Scientific NASDAQ: CORZ, and Marathon Digital Holdings. The fund has an asset under management (AUM) of $145.80 million and charges a net expense ratio of 0.85%. BITQ's performance has been strong, with a 1-year return of 105.89% and a six-month performance of over 35%. While the fund's average daily volume of 167,000 shares is relatively low, it is adequate to ensure sufficient liquidity for shareholders. Strategic Considerations for Portfolio Allocation These five cryptocurrency ETFs cater to investors with varying risk appetites and investment strategies. The First Trust SkyBridge Crypto Industry and Digital Economy ETF is actively managed and seeks capital appreciation through companies at the forefront of the crypto revolution. Its focus on high-growth companies, coupled with SkyBridge Capital's expertise, makes CRPT an enticing option for investors seeking potentially high returns despite the inherent risk of market volatility. The Valkyrie Bitcoin and Ether Strategy ETF differs in that it leverages future contracts between Bitcoin and Ethereum. This strategy allows for potentially outsized gains but amplifies the risk of losses. BTF's high dividend yield of 11.11% also attracts income-seeking investors, although this is subject to market fluctuations. Taking a passively managed approach, the Grayscale Digital Large Cap Fund ETF offers exposure to a basket of established cryptocurrencies heavily weighted towards Bitcoin. While its strong performance and broad exposure are appealing, the high expense ratio and trading on the OTC market might deter some investors. The passively managed Grayscale Bitcoin Trust ETF focuses solely on Bitcoin, offering straightforward exposure to the dominant cryptocurrency. GBTC's high liquidity and strong performance make it popular, but its higher-than-average expense ratio requires careful consideration. Finally, the Bitwise Crypto Industry Innovators ETF (BITQ) tracks the performance of companies supporting the decentralized economy. With a diversified portfolio and strong returns, BITQ offers a balanced approach. Due to crypto ETFs' inherent volatility, it's crucial to approach them as a strategic allocation, not a core holding. The percentage allocated to crypto ETFs should align with an investor's risk tolerance. Investors with a higher risk appetite may allocate a larger portion of their portfolio to crypto ETFs, while those with a lower risk tolerance may opt for a smaller allocation. Cryptocurrency ETFs have emerged as a gateway to the crypto market, offering diversified exposure and professional management. As the crypto sector evolves, ETFs will be crucial in providing accessible investment vehicles for this burgeoning asset class. Continued innovation and regulatory clarity will shape the future trajectory of cryptocurrency ETFs, potentially revolutionizing how investors engage with the digital asset market. With the potential for significant growth and mainstream adoption, cryptocurrency ETFs are poised to become an integral part of the modern investment landscape. 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3 Stocks That Plummeted After the Post-Fed Speech Crash 2024-06-14 15:56:00+00:00 - Whenever the Federal Reserve (the Fed) speaks, the whole market, the global financial market, watches closely. A single shift in sentiment and approach to where interest rates may be headed could send markets swinging in either direction, and that’s where investors can begin to look for opportunities. Today, three stocks were caught crashing hard after the Fed’s recent speech, and they are worth looking at. In this group, it is stocks like Airbnb Inc. NASDAQ: ABNB, The Hershey Co. NYSE: HSY, and even Nike Inc. NYSE: NKE that traded down to potentially attractive levels for investors to start considering them for a watchlist. However, price action is only the starting filter for these investors to start their due diligence, as they should consider how what the Fed thinks can affect these businesses in the future. Get Airbnb alerts: Sign Up What started as a proposal for four interest rate cuts beginning in March 2024, kickstarting the S&P 500 into a new all-time high, has now become a potential single rate cut as far back as November of this year, assuming no more changes and postponement is made. Here’s why the dip in these stocks is not truly justified. Why the Fed's Postponed Rate Cuts Don't Impact These Stocks' Value Keeping logic front and center, why would the value of these businesses need to swing by so much if half of 2024 has already gone through no interest rate cuts? Making a single rate cut, or potentially none, won't significantly affect the company's financials. Despite all this, here's why these stocks may be attractive today. Airbnb stock trades at 85% of its 52-week high, even after reporting improving financials in the company's latest quarterly financials. Hershey's stock is now down to 71% of its 52-week high, unjustifiable for arguably the strongest candy brand in the consumer discretionary sector. Last, Nike’s 76% of its 52-week high makes for a potential once-in-a-generation opportunity to watch Nike stock at today’s 24.6x forward P/E valuation, its lowest since 2018. How Higher Rates Are Actually Boosting Airbnb Stock to New Levels Because the average home price in the United States is now roughly 32% higher than it used to be before the COVID-19 pandemic, most would-be home buyers have now been priced out of the marketplace. Higher mortgage rates, around 7.3% today, have given the real estate sector another hit. Airbnb Today ABNB Airbnb $145.97 -0.13 (-0.09%) 52-Week Range $113.24 ▼ $170.10 P/E Ratio 19.54 Price Target $152.38 Add to Watchlist On the other hand, rental inflation is reported to be one of the most significant factors affecting the sticky inflation rate, which is why the Fed is staying away from interest rate cuts today. So, who else can they look to if people find it harder to buy and rent? Airbnb’s long-term stays are one answer. Because these stays are already furnished and offer flexible rates and dates, people can use the service to cushion the rental and mortgage storm. The first quarter earnings results show this trend for Airbnb stock. Long-term stays of three months or longer increased roughly 25% over the year, and that trend is expected to continue as long as the Fed keeps postponing these rate cuts. This is one reason why TD Cowen analysts see the stock going higher by 17.5% to $170 a share. Investors Should Focus on Hershey's Return on Capital During Market Dips According to the company’s financials, Hershey’s return on invested capital (ROIC) rates hover between 17% and 19% over time, one of the many reasons investors should watch the stock every time it takes a dip. Hershey Today HSY Hershey $186.98 +1.39 (+0.75%) 52-Week Range $178.82 ▼ $263.29 Dividend Yield 2.93% P/E Ratio 18.53 Price Target $210.56 Add to Watchlist Why? Annual stock price performance tends to follow the long-term ROIC rate, meaning that today’s forward P/E ratio of 19.5x, the lowest since 2015 (ex. COVID), is one of the best opportunities for investors to consider in this stock. Analysts at Argus think the stock is worth up to $225, daring it to rally by 20.5% from its current low. However, these analysts weren’t the only ones on Wall Street who found the stock attractive. The Vanguard Group, Hershey’s largest shareholder, took advantage of this dip recently, boosting its position in the stock by 14.2% as of May 2024, bringing its net investment to $3.4 billion. The Role of Nike's Global Presence in De-Risking Rate Cut Postponements Even if investors are convinced that the Fed’s delay in rate cuts is terrible for already beaten-down stocks, here’s a perfect example of Nike’s global reach. NIKE Today NKE NIKE $93.39 -0.79 (-0.84%) 52-Week Range $88.66 ▼ $123.39 Dividend Yield 1.58% P/E Ratio 27.47 Price Target $115.59 Add to Watchlist Because the brand has significantly penetrated global markets, its revenue streams are diversified away from the U.S. retail sector. Even if there are zero rate cuts this year, Nike can still count on European and Asian markets to compensate for the North American headwind. Still, even with higher interest rates, Nike’s most recent quarterly earnings results show a rise of 3% in net North American revenues. Because of this ability to cushion the cycle, analysts at Robert W. Baird see a price target of $125 a share, or 33.5% higher than today’s compressed prices. That is also why Lazard Asset Management decided to boost its stake in Nike stock by 7.9% as of May 2024, bringing the investment firm’s net investment in Nike stock up to $300.8 million today. Before you consider Airbnb, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Airbnb wasn't on the list. While Airbnb currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Wells Fargo fires workers after allegedly catching them simulating keyboard activity 2024-06-14 15:53:00+00:00 - Research shows young workers are feeling stressed and lonely at work Research shows young workers are feeling stressed and lonely at work 01:02 Wells Fargo fired more than a dozen workers last month after allegations that the employees were faking work activity on their computers. The bank terminated the workers after investigating claims of "simulation of keyboard activity creating impression of active work," according to a filing cited by Bloomberg News, which earlier reported the firings. The terminations were reported in disclosures filed with the Financial Industry Regulatory Authority, an organization that oversees broker-dealers in the U.S. "Wells Fargo holds employees to the highest standards and does not tolerate unethical behavior," Wells Fargo said in an emailed statement to CBS MoneyWatch. It declined to provide additional comment. The workers were all in the wealth and investment management division of Wells Fargo, according to Ars Technica. The firings come as many employees remain remote or in hybrid roles following the pandemic, which shuttered offices around the nation and forced people to work at home. At the same time, some workers reportedly turned to strategies such as "mouse movers" or "mouse jigglers" to trick activity-tracking software used by their employers. These devices, which cost about $20 each, keep cursors jiggling on screen in a way that mimics mouse movement, making it appear that a worker is active at their computer and working when they're not. There are also devices that automatically press keyboard keys, mimicking the act of typing. Those cost slightly more, at about $60 each. It's unclear whether the Wells Fargo employees were using mouse movers, or faking work at home or at the office, according to the Bloomberg and Ars Technica reports. Wells Fargo started requiring its workers to go back to the office under a hybrid model in 2022, Bloomberg noted. The bank has sought to regain its footing after a series of scandals during the past decade, including facing a $3.7 billion fine in 2022 for illegally assessing fees and interest charges on auto loans and mortgages and opening fake accounts in the names of millions of customers.
Adobe Stock: It’s Not Too Late To Buy The Dip 2024-06-14 15:04:00+00:00 - The price correction in Adobe NASDAQ: ADBE stock experienced over the past two quarters was not unwarranted. The company’s AI prospects aside, the results were solid but failed to show the boost seen in other prominent AI players, including NVIDIA NASDAQ: NVDA, Micron NASDAQ: MU, Microsoft NASDAQ: MSFT, Meta NASDAQ: META, Alphabet NASDAQ: GOOGL and Oracle NYSE: ORCL. However, the company’s quality and value to investors never wavered, leading to a buying opportunity still in play. Adobe Today ADBE Adobe $525.31 +66.57 (+14.51%) 52-Week Range $433.97 ▼ $638.25 P/E Ratio 47.20 Price Target $605.17 Add to Watchlist Better-than-expected Q2 results, driven by strength in all segments and product lines, spurred the analysts to raise targets and lead the market higher. Based on the chatter, this stock could rise to retest this year’s highs quickly and then continue to rise and retest the all-time highs by the year’s end. Assuming the subsequent quarters reveal the same strengths as Q1, the trend in analysts' sentiment and the stock price should continue and push this stock to a new all-time high within the next twelve to eighteen months, a gain worth 40% to 50% from the $520 level. Get Adobe alerts: Sign Up Adobe Surges On Solid Results, Cloud and AI Demand Adobe had a stellar quarter, setting record revenue with a 10.2% YoY increase driven by strengths in both operating segments, outpacing the consensus estimate by a few dozen basis points. The $5.13 billion in net revenue is driven by an 11% gain in Digital Media offset by a slightly slower 9% growth in Digital Experience. Demand centers on Creative Cloud, Digital Cloud, and Enterprise Cloud solutions, including Premier Pro, Animate, and After Effects. Client counts and deepening penetration, compounded by pricing efforts, aided the top-line strength. Adobe raised prices in 2023, causing some concern among analysts because its products were already selling at premium prices compared to competitors. The takeaway is that product differentiation and utility offset the price increases; clients are flocking to Adobe because it is the premier product. Margin news is better. The company’s gross and operating margins improved compared to last year, driving leveraged growth on the bottom line. The operating income is up 16%, the GAAP net income is up 21.5%, and the adjusted net income is up 12.75% compared to the 10% top-line gain. The result is a 23% increase in GAAP EPS and a 14.5% increase in adjusted EPS and positive cash flow despite reinvestment and accelerated share repurchases. Regarding consensus, the $4.48 in adjusted EPS is a dime ahead of the MarketBeat.com consensus and led management to raise guidance. The guidance is the best news in the report. The company raised its guidance for the year, aligning the revenue target with the consensus estimates and the EPS targets with outperformance. The company expects Q2 and full-year EPS to exceed the analysts' targets, providing a tailwind for the market. The Analysts Lead Adobe to Record Highs Adobe MarketRank™ Stock Analysis Overall MarketRank™ 4.79 out of 5 Analyst Rating Moderate Buy Upside/Downside 15.2% Upside Short Interest Healthy Dividend Strength N/A Sustainability -0.55 News Sentiment 0.59 Insider Trading Selling Shares Projected Earnings Growth 13.40% See Full Details Analysts trimmed their targets for Adobe early in 2024, but that trend is over. The post-release activity includes an upgrade from JPMorgan Chase to Overweight from Neutral and numerous price target increases. There are no downgrades or price target reductions. Several price target increases are below the consensus, but details include a higher low-end range, a rising consensus estimate, and the bulk of targets above the consensus. Consensus assumes a 35% upside and a retest of the 2024 highs; the bulk of fresh targets assume a range above the consensus. The technical action is promising. Adobe stock is winding up within a secular-grade triangle pattern and has confirmed support at the middle of the range. This suggests upward movement and a retest of the triangle’s upper limit, if not the range top, which is near $700. Assuming the company continues to perform as expected, a new high is likely. Before you consider Adobe, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Adobe wasn't on the list. While Adobe currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Bitcoin Breakout Looms: Which Crypto Stocks Will Ride the Wave? 2024-06-14 13:17:00+00:00 - As Bitcoin continues to consolidate within reach of its all-time highs, many investors, speculators, and traders wonder if a breakout is on the horizon. Currently trading at $67,100 per bitcoin and up almost 52% YTD, Bitcoin's critical short-term support level sits at $66,000, with $72,000 acting as critical resistance. Should Bitcoin break through this resistance, it could spark significant moves in Bitcoin-related stocks. Let’s take a look at four popular Bitcoin-related companies and assess which ones are best set up for a move higher if Bitcoin breaks out. Get iShares Bitcoin Trust alerts: Sign Up Marathon Digital Holdings' Focus on Bitcoin Mining Marathon Digital Today MARA Marathon Digital $19.47 -0.53 (-2.65%) 52-Week Range $7.16 ▼ $34.09 P/E Ratio 9.06 Price Target $19.33 Add to Watchlist Marathon Digital Holdings NASDAQ: MARA focuses on Bitcoin mining, having rebranded in 2020. Despite its surge earlier in the year, MARA has underperformed, with shares down almost 15% YTD. The stock has a bearish sentiment, with a 22% short interest and analyst consensus predicting further downside. Technically, MARA does not show a bullish setup at the moment, making it less favorable for a breakout. Analyst Forecasts and Buy Rating for Riot Platforms Riot Platforms Today RIOT Riot Platforms $10.53 -0.45 (-4.10%) 52-Week Range $7.80 ▼ $20.65 P/E Ratio 12.10 Price Target $18.10 Add to Watchlist Riot Platforms NASDAQ: RIOT aims to be a leader in Bitcoin mining in North America. Like MARA, RIOT has underperformed, with its stock down almost 30% YTD. It has a notable short interest of over 17%. Recently, short seller Kerrisdale Capital released a critical report on RIOT, claiming its business model is inefficient. Despite this, analysts maintain a buy rating, forecasting a potential 65% upside with a price target of $18.10. However, technically, RIOT does not currently present a bullish formation. Evaluating MicroStrategy's Premium to Bitcoin Holdings MicroStrategy Today MSTR MicroStrategy $1,495.54 +11.66 (+0.79%) 52-Week Range $266.00 ▼ $1,999.99 Price Target $2,012.40 Add to Watchlist MicroStrategy NASDAQ: MSTR, a global provider of enterprise analytics software, owns 214,400 bitcoins. Unlike MARA and RIOT, MSTR has outperformed, gaining 134% YTD. Trading at a premium to its Bitcoin holdings, MSTR could see a push over $1,800 if Bitcoin breaks out, potentially reaching new all-time highs above $2,000. However, notable short interest at almost 19% and significant insider selling over the past year suggest caution. Coinbase Global: Leading Cryptocurrency Exchange Coinbase Global Today COIN Coinbase Global $244.50 -3.14 (-1.27%) 52-Week Range $50.93 ▼ $283.48 P/E Ratio 48.80 Price Target $214.67 Add to Watchlist Coinbase Global NASDAQ: COIN is a major cryptocurrency exchange offering tools for trading over 200 cryptocurrencies. Technically, COIN looks the most favorable, currently consolidating above all major moving averages and 12% off its 52-week high. The stock is up over 40% YTD and has a relatively low short interest at 5%. Its recent earnings beat, reporting $1.65 EPS against an estimated $1.04 and revenue of $1.64 billion against $1.26 billion expected, positioning COIN well for further gains if Bitcoin breaks out. The Bottom Line: Bitcoin-Related Stocks to Watch As Bitcoin teeters on the brink of a potential breakout, certain Bitcoin-related stocks stand out for their readiness to capitalize on this move. While MARA and RIOT face bearish sentiment and technical setups, MSTR and COIN appear better positioned. MSTR could see significant gains if Bitcoin rallies, but caution is warranted due to insider selling, a hefty premium to its underlying and short interest. With its solid technical setup and recent earnings beat, COIN seems the best poised to benefit from a Bitcoin breakout. Another option for a reactive move should Bitcoin break out is the iShares Bitcoin Trust ETF NYSE: IBIT, arguably the most popular and liquid Bitcoin spot ETF issued by Blackrock. Investors should, however, stay vigilant and cautious, as the cryptocurrency market’s volatility demands careful consideration and strategy. Before you consider iShares Bitcoin Trust, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and iShares Bitcoin Trust wasn't on the list. While iShares Bitcoin Trust currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
What is a Dividend Trap? Here's What You Should Know 2024-06-14 13:00:00+00:00 - Have you ever been offered a deal that sounded too good to be true? Everyone likes to find a bargain, but if the price or terms are overly generous, it sends a warning sign to our scam radar. What’s the catch? Why would this benefit the person offering the deal? In markets, prices tend to be efficient, but that doesn’t mean every asset is valued correctly. Stock prices can get disconnected from business reality, as can the dividends companies pay shareholders. A dividend trap occurs when a high yield masks underlying problems, and investors buy shares expecting consistent income only to have the stock price and dividend payout decline over time. How to Identify a Dividend Trap Dividends aren’t fixed like the interest rate on a mortgage; companies can choose to increase or decrease them at any time. The best dividend-paying companies attempt to keep payouts steady or gradually increase yearly. A high yield doesn’t necessarily mean an unsustainable obligation, but there are some red flags to look for whenever you spot a dividend that seems too good to be true. Get NVIDIA alerts: Sign Up High Yield Comparison Certain companies, like utilities or consumer staples, tend to pay higher dividend yields than other stock sectors due to the nature of their businesses. Unlike tech or pharma, utilities don’t reinvest in new projects or research, so they return more profits to shareholders through dividends. That’s why comparing stock dividends within industries or sectors is crucial. Stocks like utilities can sustain a much higher dividend payout than capital-craving tech firms. If you think a dividend is unsustainable, compare it to other industry peers and not the market as a whole. Earnings and Payout Ratios Dividend payouts come from the company’s profit pool, so monitoring earnings and ensuring the company makes enough cash to keep the payouts coming is imperative. Examining earnings trends and specific financial ratios is a good technique for spotting dividend traps. For example, if a dividend-paying company announces poor earnings and guidance, you’ll want to look at the financial data and ensure the payout isn’t becoming a burden. The Dividend Payout Ratio (DPR) measures the percentage of company profits going toward dividend obligations. If this number exceeds 100%, the dividend is on thin ice. Debt and Cash Reserves Companies have other obligations besides paying dividends to shareholders, and having too much strain on the balance sheet can negatively affect future payouts. Debt levels and cash reserves are two numbers to stay on top of here. Although there could be reasonable explanations for expanding debt or dwindling cash reserves, when these figures are both heading the wrong way, it might be a sign that the company is dipping into different sources to fund dividend payouts. A company that uses debt to fund dividend payments likely won’t be able to sustain the practice for long. Why It's Important for Investors to Understand Dividend Traps A dividend trap can be devastating for an unprepared investor. Dividend investing is a conservative strategy with a goal of steady income and capital preservation, not market-beating returns. However, a dividend trap can damage an investment plan on two sides: the loss of dividend income and the decline of portfolio value as the stock drops along with the dividend. A high dividend yield is alluring and offers investors a false sense of security. Consistently high income is tempting, but high yields can indicate deteriorating financial health within the firm. Because so much cash is required to sustain the dividend, business growth opportunities are tabled, and the company continues to circle the drain. Eventually, the dividend will become too much for the overburdened company and it will be forced to cut or eliminate the payout. Companies never want heavy dividend cuts because it shows the balance sheet was mismanaged and breaks trust with investors. Unexpected dividend cuts can hinder financial plans, especially those depending on a fixed income. Finally, dividend traps don’t just affect yields and payouts. The market doesn’t take kindly to companies that slash dividends, and the stock price usually gets bludgeoned whenever a dividend cut or elimination is announced. Those in the dividend trap now have to worry about a lack of payouts and a portfolio that’s losing value. How to Avoid Dividend Traps Now that you understand the dividend trap, it's time to build a defense system against it. Some will be less obvious than others, but it's vital to understand fundamental analysis and how to read financial statements and data. Fundamental Analysis Research should be the first step in any investment plan, and a fundamental analysis of dividend-paying companies can tell you about the security and strength of the payout. Reviewing company balance sheets, income statements, and earnings reports will not only give hints about the overall state of the business but also help you find out where the dividend money comes from. Is the company paying the dividend with a manageable portion of its profits, or are they borrowing money to satisfy the payout? You may have uncovered a dividend trap if the answer is the latter. You can search for companies based on dividend yield using MarketBeat's dividend screener. Industry Yield Comparison Investors are always trying to source an outlier, a company that will outperform expectations and provide exponential gains. However, when it comes to dividend investing, an outlier might be a red flag that requires further inspection. For example, if you’re investing in a sector that averages a 4% dividend yield and find a company in that industry paying 11%, you probably didn’t discover a hidden gem the rest of the market missed. Instead, further research into that company will likely show an unsustainable payout ratio and a probable dividend trap. Review of Financial Health History can also be a dividend investing guide. Companies with long-term sustainable dividends can fall into groups like Dividend Aristocrats or Dividend Kings, meaning they’ve successfully raised dividend payouts for multiple decades. Knowing that a public company has a 25 or 50-year track record of raising dividend payouts provides peace of mind for income-seeking investors. Use a company’s dividend payment history and compare it with its current fundamentals. If the payout rate is sustainable and the payment amount continues to climb yearly, you may have found a stock that fits your objectives. Getting Started with Dividend Investing Dividend investing isn’t about finding the best-performing stocks. Yes, you’ll miss out on high-flying gains from stocks like NVIDIA Corp NASDAQ: NVDA or Meta Platforms Inc. NASDAQ: META, but outperformance isn’t the most important factor when investing for dividends. When income is the goal, slow and steady wins the race, and companies with a long history of incremental annual payout raises are often the best dividend stocks. Dividend payers often reside in non-growth-oriented sectors like consumer staples or utilities. These companies have inelastic demand for their products, meaning consumers require the same amount each month/quarter/year regardless of economic conditions or personal financial situation. Think household cleaning products, food and beverages, and services like electricity or the internet. Specific industries are known for high yields, but you still must examine these companies and look for potential dividend traps. Make sure the payout ratio is sustainable compared to industry peers, review company balance sheets and statements and examine the history of the dividend itself. Starting with well-established companies like the Dividend Kings is probably your best bet if you’re new to dividend investing. If It Sounds Too Good to be True, Don’t Invest Dividend traps can be investment plan destroyers since you lose the quarterly income from the dividend payout and likely lose portfolio value when the dividend is cut, and the stock price follows it down. Proper research is the best way to avoid these traps, and thankfully, there are some obvious warning signs that a dividend payout could be in trouble. Use data like the payout ratio, average industry yield and financial statements to make informed investment decisions. Improve Your Investing Strategy with MarketBeat Dividend investing requires plenty of research, but that doesn’t mean it's overwhelming. MarketBeat has plenty of tools and screeners to help you find the best dividend-paying stocks for your portfolio. Before you consider NVIDIA, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list. While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here