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A Retirement Tax Break That Ends the Fear of Outliving Your 401(k)
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Tag: Life Insurance
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14 dividend stocks yielding 4% or more that are expected to increase payouts in 2023 and 2024
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If you invest in dividend stocks, you are probably looking for long-term growth to go with the income. Otherwise you might be content to hold one-month U.S. Treasury bills, which yield 4.5% or park your money in an online savings account for a yield close to 4%.
Below is screen of stocks with current dividend yields ranging from 4.14% to 8.46%. What sets these apart from other stocks with high dividend yields is that their payout increases are expected to accelerate in 2023 and 2024 from those in 2022.
On Tuesday, S&P Dow Jones Indices said in a press release that it expected dividend payments by publicly traded U.S. companies to continue to hit record levels in 2023. But Howard Silverblatt, a senior index analyst with the firm, said that the pace of dividend increases in the first quarter had slowed and that he expected this year’s increases to be “at half the pace of the double-digit 2022 growth.”
Silverblatt also said current events in the banking industry were “expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth.”
For many banks, there’s another big item on the table. A focus on share buybacks in recent years is very likely to end — this is a use of cash that can raise earnings per share if the share count is reduced, but there can be consequences, especially after a year of rising interest rates that pushed down the market value of banks’ investments in bonds.
In a note to clients on March 16, Dick Bove, a senior research analyst with Odeon Capital, predicted that stock repurchases in the banking industry would be “meaningfully cut back if not flat out eliminated.” He made three general points about buybacks in the banking industry:
- Buybacks remove working capital that would otherwise provide returns to a bank.
- Buybacks mean a bank’s board of directors is “in favor of flat-out giving capital away to investors that want nothing to do with the bank — they are selling its stock.”
- Buybacks do “nothing to increase bank stock prices – many bank stocks are selling at below their prices of five years ago.”
A company might find it much easier to curtail or stop buying back shares to preserve cash than it is to cut regular dividends. Preserving and increasing the dividend over time has been correlated with good performance for stocks over time. These articles provide examples of how dividend compounding is correlated with long-term growth as income streams build up:
- 14 dividend stocks that rose 100% or more in 5 years as the payouts doubled
- These 15 Dividend Aristocrat stocks have been the best income builders
Dividend stock screen
The S&P Dow Jones Indices report raises the question of which stocks might buck the trend.
Starting with the S&P 500
SPX,
-0.50% ,
there are 71 companies stocks with current dividend yields of at least 4.00% indicated by annual payout rates. Among these companies, 68 increased dividends during 2022, according to data provided by FactSet.Then we looked at the pace of dividend increases in 2022 and the consensus estimates for dividends paid during 2023 and 2024, among analysts polled by FactSet. Among the remaining 68 companies, there are 29 for which the estimated 2023 dividend increase is higher than the 2022 dividend increase. Narrowing further, there are 14 for which the estimated 2024 dividend increases are higher than the estimated 2023 dividend increases.
Here are the 14 stocks that passed the screen, sorted by current dividend yield:
Company Ticker Dividend yield Dividend increase – 2022 Expected dividend increase in 2023 Expected dividend increase in 2024 Altria Group Inc. MO,
+0.27% 8.46% 4.5% 4.7% 4.9% Newell Brands Inc. NWL,
-1.19% 7.55% 0.0% 0.1% 0.6% Boston Properties Inc. BXP,
-0.94% 7.42% 0.0% 0.7% 1.0% KeyCorp KEY,
-2.22% 6.99% 5.3% 6.7% 6.8% Prudential Financial Inc. PRU,
+0.17% 6.08% 4.3% 4.7% 4.8% ONEOK Inc. OKE,
+0.60% 5.87% 0.0% 2.2% 2.4% Healthpeak Properties Inc. PEAK,
-0.32% 5.54% 0.0% 2.1% 2.2% Dow Inc. DOW,
-0.53% 5.16% 0.0% 1.1% 2.2% Iron Mountain Inc. IRM,
-1.00% 4.70% 0.0% 1.8% 5.4% NRG Energy Inc. NRG,
+1.34% 4.50% 7.7% 7.9% 7.9% Franklin Resources Inc. BEN,
-0.58% 4.50% 3.6% 4.3% 5.7% Federal Realty Investment Trust FRT,
-0.53% 4.38% 0.9% 1.7% 2.1% Ventas Inc. VTR,
-0.57% 4.26% 0.0% 3.3% 5.5% Kraft Heinz Co. KHC,
+1.42% 4.14% 0.0% 0.7% 0.8% Source: FactSet Click on the ticker for more about each company.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Any stock screen is limited, but can be useful as a starting point or supplement to your own research. If you see any companies of interest, do some research to form your own opinion of how likely they are to remain competitive over the next decade, at least.
Don’t miss: This stock ETF keeps beating the S&P 500 by selecting for quality
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Don’t Need Your Life Insurance Policy Anymore? Sell It. | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.
You signed up for life insurance in an effort to provide a financial safety blanket for your loved ones after your death, but what if you don’t need it or simply can’t afford it anymore?
Did you know that it can be turned into cash while you’re still alive to get you out of a financial crisis? You could even use it to build supplemental income for your golden years.
That’s right. You can sell your life insurance policy just like any other private property. This transaction is called a life settlement.
Maybe you need the cash to cover a major (and unexpected) expense or simply want to rid yourself of paying the monthly premium. Often, a life settlement is the only lifeline for many older adults struggling to cover heaps of medical bills after they fall critically ill or need long-term care in retirement.
Those unaware of this option end up selling their cars or homes or pile up huge debts while paying for care, not knowing that their insurance policy could get them the same amount (or more) of cash than what their vehicle is worth or the total equity in their property.
If you ever think of going down the same route, please don’t. Selling your life insurance policy to an individual or entity may be a smart move, depending on your unique circumstances. Knowing how to sell it and determining if it’s even the right move for you is critical to your financial future.
Related: Life Insurance: What to Consider As a Business Owner
Understanding life settlement: What is it and how does it work?
A life settlement is when you sell your life insurance policy to a third party for a lump sum that’s less than the net death benefit but more than the cash surrender value.
Sellers usually receive a lump sum, and afterward, the buyer assumes responsibility for the policy, paying the premiums and receiving the full death benefit when the policyholder passes away.
As the policy owner, you can avail several advantages from a life settlement. Some of these include the following:
- It provides an immediate source of cash that you can use for any purpose, from paying off debts to funding a business venture and covering major expenses that may have arisen unexpectedly.
- You no longer have to keep track of the premiums that must be paid to the life insurance company.
- You no longer have to stress over saving to pay for the premiums if you can’t afford the policy anymore and don’t want it to lapse.
- You can use the lump sum to create a retirement fund or supplement your retirement income by purchasing an annuity.
- You can reserve the cash to pay for long-term care needs that may arise.
A life settlement is also an attractive option for those who have a policy with a high cash surrender value but don’t need the death benefit. For example, you may have purchased a life insurance policy to secure the financial future of your spouse or children, who are no longer dependent on you. With them becoming financially independent, the policy may no longer be needed.
The same goes for seniors who may have purchased a policy when they were in good health, but now, with their deteriorating health, they may be struggling to afford the premiums. A life settlement can help them eliminate this burden and improve their quality of healthcare and life.
Related: Why Life Insurance Has to Be Part of Your Wealth-Building Plan
Eligibility requirements for a life settlement
Generally, you must be 65 or older and your policy must have a minimum face value of $100,000 to qualify for a life settlement. This is because investors wouldn’t want to pay premiums on a policy for you if you could continue to live for decades.
Also, many states require you to wait at least a couple of years after a life insurance policy is issued before you can sell it. In some states, the waiting period is five years.
Are there any drawbacks to a life settlement?
The only drawback of a life settlement is that you’ll no longer have life insurance coverage. But if your family’s financial future is secure and you don’t need the policy, there’s nothing to lose in a life settlement transaction.
Ready to make the big decision?
Whether you need the cash or want to free yourself of the premiums, life settlements are a big decision.
You must carefully assess your circumstances and consider all the benefits and drawbacks of selling a life insurance policy before making the final decision. Also, make sure you fully understand the laws in your state regarding life settlements to avoid getting into trouble.
If you think a life settlement is the best way forward for you, get in touch with a life settlement broker or financial advisor to discuss your options. It really helps to shop around before sealing the deal because some companies tend to make less than lucrative offers. A professional can help you make sure you get a fair price for your policy.
As soon as a suitable prospect is found, you and the buyer will have to sign a contract outlining the terms of the sale. Once the contract has been signed, you’ll receive the agreed-upon amount in a lump sum from the buyer.
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William Schantz
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My fiancé and I are 60. His adult daughter is opposed to our marriage — and insists on inheriting her father’s $3.2 million estate. How should we handle her?
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What advice would you give to a widow and widower considering marriage on how to manage finances — and deal with adult children?
We are both 60 years old and plan to work a few more years, mostly for health insurance. We both have about $1.5 million in retirement savings accounts. Our spouses’ 401(k)s and IRAs rolled into our accounts.
I have another $500,000 in a brokerage and he has almost another $1 million. We both own homes with $300,000 mortgages. Mine is worth $500,000, Paul’s (not his real name) home is worth $1 million. We have no other debt.
We both have one married, and one unmarried child that we help. We both have two grandchildren.
We should be set up very well. Here’s the concern: His married, well-off daughter is very aggressive about inheritance. She wants the family home retitled in a trust. She wants all life insurance and brokerage beneficiaries in her name. Her brother has had drug-addiction problems, so she’s cutting him out even though it seems he’s the one who will need help.
“‘She wants the family home retitled in a trust. She wants all life insurance and brokerage beneficiaries in her name.’”
The daughter isn’t thrilled about our relationship and suggests we just live together. For religious reasons, I would never do this. Grandma shacking up? What example would I set for my grandchildren?
As a widowed couple, we are realistic enough to plan for the time one of us is left alone. Paul has diabetes, high blood pressure and already sees a cardiologist. What if he has a heart attack? Stroke? Or if he dies?
What’s a fair way to mingle finances and allow security for me should he predecease me while allowing Paul’s daughter to ultimately inherit?
By the way, my children have never raised money as an issue. After we both cared for spouses through cancer, they know life is short and just want us to be happy.
Happy to Have Found Love Again
Dear Happy,
She is overstepping the line, and overplaying her hand.
The first rule of inheritance is that it’s not yours until the decedent’s money is sitting in your bank account. Your fiancé’s daughter can make all the demands she likes, but the only thing your fiancé has to do is say, “You don’t need to be concerned. My affairs are all in order. I’ve always taken care of my own affairs, and I am not changing now.”
How your fiancé decides to split his estate is entirely up to him, and can be done in consultation with a financial adviser and attorney, taking into account each of his children’s individual needs. For instance, if you move in together, he could give you a life estate, allowing you to live in the home for the rest of your life, and dividing the property between his two children thereafter.
Given that you have your own home, however, you may decide to rent it out, and move back there in the event that he predeceases you. There are so many ways to split an inheritance. You could look at the intestate laws of your state, and follow them. In New York, the spouse inherits the first $50,000 of intestate property, plus half of the balance, and the kids inherit the rest.
“Paul” may decide to set up a trust for his son, so he can provide an income for him over the course of his life. If he has or had issues with addiction, this will help him while not putting temptation in his way with a lump sum of money. The best kind of trust is the one that deals with any recurring issues directly, and takes into account the person’s circumstances.
Martin Hagan, a Pennsylvania-based estate-planning attorney who has practiced for four decades, writes: “First, it would authorize distributions only if the beneficiary is actively pursuing treatment and recovery. Second, it would limit distributions to paying only for the expenses incurred in carrying out the treatment plan that will have been developed for the beneficiary.”
You have $2 million collectively in a retirement and brokerage account and $200,000 equity in his home, and you can use these next seven years or so to pay off your mortgage, while your fiancé has $2.5 million and $700,000 in equity on his home. You are both well set up for retirement, and let’s hope you have many years to spend together.
The financial services industry has many opinions. You should, advisers say, have 10 times your salary saved by the time you’re 65 years old. You don’t mention your salary, but I would be surprised if many people in America had that much money saved, especially given all of the unexpected events — divorce, illness, job loss — that can occur in the intervening years.
You also have other priorities than dealing with an aggressive daughter/daughter-in-law. AARP suggests that most people should look into long-term care insurance between the ages of 60 and 65, around the time most people are eligible to qualify for Medicare. If you do it earlier, it can serve as a savings account in the event that you never need long-term care, AARP says.
As retirement columnist Richard Quinn recently wrote on MarketWatch, everybody’s circumstances are different. “Living in retirement isn’t about averages. It isn’t about what other people do or the opinions of experts, especially online instant experts who don’t know anything about you and have yet to experience many years of retirement themselves.”
Don’t give too much oxygen or power to your future daughter-in-law. Her father should give her a stock answer, and be firm. If she persists, he can say, “The subject is closed. I need you to respect the decisions I make about my own life, respect my privacy on these matters, and it would be nice if you would be happy for us, and support us in our marriage together.”
You can’t change people. But you can change wills.
You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com, and follow Quentin Fottrell on Twitter.
Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.
The Moneyist regrets he cannot reply to questions individually.
More from Quentin Fottrell:
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Big Tech just added to a shrinking forecast, but maybe Bob Iger can brighten the mood
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Wall Street’s expectations for 2023 have been diving as forecasts for the new year come in light, and the news could get worse once they factor in disappointing results from Big Tech. But at least Bob Iger is coming back for a sequel.
Google, Facebook, Amazon and Apple all disappointed with holiday earnings this week. Their forecasts ranged from nonexistent to piecemeal to meh, and the fallout will only add to the biggest dive in Wall Street’s expectations through the beginning of a year since 2016.
Analysts’ average forecast for 2023 earnings from the S&P 500 index
SPX,
-1.04%
dropped by 2.5% in January, according to FactSet Senior Earnings Analyst John Butters, the worst in seven years. Those projections began heading lower last year, and the decline is only steepening — analysts are now projecting 3% earnings growth in 2023, and that is contingent on a big holiday rebound from the results being released this quarter.
Uncredited
The news was even worse for the first quarter, for which projections declined 3.3% in January as companies whiffed on their forecasts at a rapid pace: 86% of the 43 companies that have guided for first-quarter earnings have missed projections, Butters reported. Earnings are now expected to decline 4.2%, which would be the first year-over-year earnings decline since the third quarter of 2020, when the COVID-19 pandemic write-offs started to come in.
Big Tech only added to the downward trajectory in recent days. Amazon.com Inc.
AMZN,
-8.43%
missed on its holiday earnings as well as its forecast for the first quarter, and that company could determine if S&P 500 profits rise in 2023 all on its own. Amazon’s worst holiday earnings since 2014 could also contribute to the consumer discretionary sector’s first earnings decline since the beginning of the pandemic, with holiday sector earnings now expected to drop more than 5%.Google parent Alphabet Inc.
GOOGL,
-2.75%
GOOG,
-3.29%
and Facebook parent Meta Platforms Inc.
META,
-1.19%
also missed their respective earnings targets amid problems with the digital-advertising industry, leading to the communications-services sector having the worst earnings season in the S&P 500. Profit has declined 25.2% in that sector so far, the worst among the 11 S&P 500 sectors, but would be down just 6.5% without the effects of Meta and Alphabet, Butters reported.Apple Inc.
AAPL,
+2.44%
also didn’t do projections any favors, reporting its biggest sales decrease since 2016 and an earnings miss Thursday afternoon. In a piecemeal forecast, executives projected a similar sales decline in the calendar first quarter, though unofficially.This week in earnings
After the busiest week in earnings season wrapped up, don’t expect much of a breather — 95 S&P 500 companies are expected to report in the week ahead, the third consecutive week with at least 90 companies reporting. There will be plenty of intrigue among companies not in the S&P 500 too, including Robinhood Markets Inc.
HOOD,
-3.59%
and Affirm Holdings Inc.
AFRM,
-14.14%
reporting together on Wednesday afternoon.Only one Dow Jones Industrial Average
DJIA,
-0.38%
stock will report, but that is the Wednesday call you will want to tune in for: Bob Iger’s return to the Walt Disney Co.
DIS,
-2.21%
earnings show.The calls to put on your calendar
- Disney: The last time Disney announced earnings, Bob Chapek’s performance was so bad that the Disney board brought Iger back aboard to redirect the company. While he’s already had to fight with activist investor Nelson Peltz— there were dueling letters this week as Peltz seeks a seat on the Disney board — this will be Iger’s true return to the Wall Street stage. The longtime CEO has always had a knack for taming investors, often appearing live on CNBC between the bell and the conference call on earnings day, sometimes dropping secret nuggets of info for fans throughout the afternoon. Listen for him on Wednesday to see what he expects to change after replacing Chapek. For more: Wall Street shows love for Bob Iger, ‘perhaps the best leader in media’
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Take-Two: Any hints on when we are going to see “Grand Theft Auto VI?” Analysts are trying to time the game’s release, as it will likely lead to a flood of profit that could…just keep on going, if “GTA V” — still one of the biggest sellers every year and the biggest ever — is any indication. Take-Two Interactive Software Inc.
TTWO,
-4.74%
reports Monday, after its stock fell more than 40% in 2022 amid a merger with Zynga. Results will likely rely on holiday sales of “NBA 2K23″, but analysts will want news about the pipeline. The same afternoon, videogame publisher Activision Blizzard Inc.
ATVI,
-2.43%
will announce earnings, but again not host a conference call as it awaits its acquisition by Microsoft. Read: As gamers wait for ‘Grand Theft Auto VI,’ Take-Two likely has ‘major announcements right around the corner,’ analyst says
The numbers to watch
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Food prices: Groceries, prepared foods and even snacks have seen higher prices in waves of inflation, and executives will give clues about their plans for pricing going forward nearly every day of the week: Tyson Foods Inc.
TSN,
-1.69%
on Monday, Chipotle Mexican Grill Inc.
CMG,
+0.20%
on Tuesday, Yum Brands Inc.
YUM,
-0.94%
on Wednesday and wrapping up with PepsiCo Inc.
PEP,
-0.50% ,
Kellogg Co.
K,
-0.03%
and Flowers Foods Inc.
FLO,
-0.25%
on Thursday. Listen out for some of the phrases they used to suggest they could still raise prices if they wanted to last season: “pricing power,” “strong pricing” or “price realization.” -
Ride-hailing prices and demand: In their most recent results, Lyft Inc.
LYFT,
-0.97%
disappointed with its number of rides, but showed much higher revenue per ride, while Uber Technologies Inc.
UBER,
+0.12%
rides increased 19% as gross bookings ran up 45% on a constant-currency basis. Both of those suggest rising prices, which could affect demand that has been steadily growing in the third year of the COVID-19 pandemic. Compare bookings and revenue growth with riders and rides growths when Uber reports Wednesday morning and Lyft on Thursday afternoon. Read more: Food prices keep rising. Food-company execs are betting Americans will keep paying.
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Truist acquires BankDirect Capital Finance in Q4 | Bank Automation News
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Truist Financial closed its acquisition of finance company BankDirect Capital Finance in the fourth quarter of 2022. The deal for the finance company to operate under the bank’s Truist Insurance Holdings arm was announced Sept. 6, according to a Truist release. BankDirect brings life insurance, new team members and enhanced risk management solutions to Truist, […]
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Whitney McDonald
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18 stock picks in a ‘Goldilocks’ scenario for U.S. consumers
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It may not have been a surprise to see the consumer discretionary sector of the S&P 500 get hammered last year amid talk of a looming recession while the Federal Reserve jacked up interest rates to push back against inflation.
But the stock market always looks ahead. Following a decline of 19.4% for the S&P 500
SPX,
+0.42%
in 2022 and a 37.6% drop for the benchmark index’s consumer discretionary sector, this may be the time to begin looking for bargains.And now, analysts at Jefferies have lifted the sector to a “bullish” rating.
In a note to clients on Jan. 10, Jefferies’ global equity strategist, Sean Darby, wrote: “A Goldilocks scenario might be unfolding for the U.S. consumer — falling inflation but steady employment conditions.”
He sees consumer confidence improving, in part because “households are still sitting on [about] $1.4 trillion of Covid savings.”
Darby pointed to a list of 18 consumer discretionary stocks favored by Jefferies analysts that was published on Jan. 6. Those are listed below, along with three stocks in the sector the analysts rate “underperform.”
The ratings of the Jefferies analysts for individual stocks is based on their 12-month outlooks for the companies, in keeping with Wall Street tradition.
So we have added another list further down, showing which companies in the S&P 500 consumer discretionary sector are expected by analysts polled by FactSet to increase sales the most through 2024.
The Jefferies 18
Here are the 18 consumer discretionary stocks recommended by Jefferies analysts with “buy” ratings on Jan. 6, sorted by how much upside the firm sees for the shares from closing prices on Jan. 9:
Company Ticker Jan. 9 price Jefferies price target Implied 12-month upside potential Three-year estimated sales CAGR through 2022 Two-year estimated sales CAGR through 2024 Topgolf Callaway Brands Corp. MODG,
-0.22% $20.76 $56 170% 32.8% 10.0% Bloomin’ Brands Inc. BLMN,
+3.87% $22.08 $35 59% 2.4% 3.7% Coty Inc. Class A COTY,
+1.23% $9.38 $14 49% -7.1% 3.7% MGM Resorts International MGM,
+1.71% $37.64 $56 49% -0.1% 6.6% Chewy Inc. Class A CHWY,
+1.63% $40.13 $57 42% 28.0% 10.6% Planet Fitness Inc. Class A PLNT,
+0.69% $82.36 $115 40% 10.4% 13.9% Molson Coors Beverage Co. Class B TAP,
+0.67% $50.21 $69 37% 0.5% 1.4% Fox Factory Holding Corp. FOXF,
+3.95% $99.90 $135 35% 28.1% 6.6% Hasbro Inc. HAS,
+0.99% $63.70 $85 33% 9.1% 3.6% Hostess Brands Inc. Class A TWNK,
+0.33% $23.10 $30 30% 14.2% 5.0% Lowe’s Cos. Inc. LOW,
+0.08% $199.44 $250 25% 10.6% -1.9% Walmart Inc. WMT,
-0.27% $144.95 $175 21% 4.9% 3.3% Dollar General Corp. DG,
-0.26% $241.05 $285 18% 10.9% 6.7% Church & Dwight Co. Inc. CHD,
-1.17% $82.25 $97 18% 7.0% 4.6% McDonald’s Corp. MCD,
+0.39% $267.25 $315 18% 2.4% 4.0% Estee Lauder Cos. Inc. Class A EL,
+0.39% $261.63 $304 16% 2.8% 5.8% Mondelez International Inc. Class A MDLZ,
-0.04% $67.24 $75 12% 6.3% 4.1% Tapestry Inc. TPR,
+0.73% $41.25 $45 9% 3.3% 3.2% Sources: Jefferies, FactSet Click on the tickers for more information about the companies.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
The two right-most columns on the table show estimated compound annual growth rates (CAGR) for the companies over the past three calendar years and expected sales CAGR for two years through calendar 2024, based on the companies’ financial reports and consensus estimates among analysts polled by FactSet.
(We used calendar-year numbers, some of which are estimated by FactSet for prior years, because some companies have fiscal years or even months that don’t match the calendar.)
The stock pick with the highest 12-month upside potential, based on Jefferies’ price target, is Topgolf Callaway Brands Corp.
MODG,
-0.22% .
This company has the highest estimated three-year sales CAGR on the list, and has the third-highest projected sales CAGR through 2024, after Planet Fitness Inc.
PLNT,
+0.69%
and Chewy Inc.
CHWY,
+1.63% .On Jan. 6, the Jefferies analysts also listed three stocks in the sector they rated “underperform.” Here they are, sorted by how much the analysts expect the stocks to decline over the next 12 months:
Company Ticker Jan. 9 price Jefferies price target Implied 12-month upside potential Three-year estimated sales CAGR through 2022 Two-year estimated sales CAGR through 2024 Lululemon Athletica Inc. LULU,
+2.98% $298.66 $200 -33% 26.3% 14.6% Williams-Sonoma Inc. WSM,
+1.75% $122.17 $98 -20% 14.1% -0.3% Harley-Davidson Inc. HOG,
+0.35% $43.25 $39 -10% -2.8% 4.4% Sources: Jefferies, FactSet Screen of consumer discretionary sales growth
A look head at which companies are expected to increase sales the most over the next two years might serve as a good starting point for your own research.
Bear in mind that some of the companies in travel-related industries suffered declining sales for three years through 2022 because of the coronavirus pandemic. Some of those are on this new list of 20 stocks in the S&P 500 consumer discretionary sector expected to show the highest two-year sales CAGR through calendar 2024:
Company Ticker Two-year estimated sales CAGR through 2024 Three-year estimated sales CAGR through 2022 Share “buy” ratings Jan. 9 price Consensus price target Implied 12-month upside potential Las Vegas Sands Corp. LVS,
+1.59% 59.2% -32.6% 79% $52.78 $53.53 1% Norwegian Cruise Line Holdings Ltd. NCLH,
+1.67% 39.6% -9.3% 44% $13.78 $16.96 23% Carnival Corp. CCL,
+1.64% 35.2% -14.7% 30% $9.47 $10.11 7% Tesla Inc. TSLA,
-1.83% 34.3% 49.7% 64% $119.77 $232.43 94% Wynn Resorts Ltd. WYNN,
+2.01% 29.3% -17.5% 53% $94.33 $96.07 2% Royal Caribbean Group RCL,
+2.22% 28.4% -6.8% 53% $57.29 $66.43 16% Chipotle Mexican Grill Inc. CMG,
-0.17% 13.4% 15.9% 71% $1,446.74 $1,778.81 23% Amazon.com Inc. AMZN,
+2.61% 12.2% 22.1% 92% $87.36 $133.76 53% Booking Holdings Inc. BKNG,
+0.37% 11.9% 3.9% 63% $2,208.41 $2,307.67 4% Aptiv PLC APTV,
+1.66% 11.9% 6.4% 70% $97.98 $117.23 20% Starbucks Corp. SBUX,
+1.28% 11.2% 7.2% 42% $104.74 $103.44 -1% Etsy Inc. ETSY,
+3.56% 11.1% 45.3% 50% $120.99 $124.04 3% Hilton Worldwide Holdings Inc. HLT,
+0.06% 10.1% -2.9% 38% $129.08 $146.17 13% Expedia Group Inc. EXPE,
+0.39% 9.0% -0.9% 50% $93.77 $125.65 34% NIKE Inc. Class B NKE,
+0.68% 8.1% 5.8% 62% $124.85 $126.15 1% Marriott International Inc. Class A MAR,
+0.47% 7.5% -1.2% 30% $152.53 $172.81 13% BorgWarner Inc. BWA,
+1.82% 7.1% 15.3% 53% $42.24 $46.93 11% Tractor Supply Co. TSCO,
+1.06% 6.8% 19.0% 61% $217.48 $232.34 7% Yum! Brands Inc. YUM,
-0.76% 6.7% 6.4% 47% $129.76 $137.79 6% Dollar General Corp. DG,
-0.26% 6.7% 10.9% 67% $241.05 $267.54 11% Source: FactSet Among the companies on this list that didn’t suffer sales declines from 2019 levels, Tesla Inc.
TSLA,
-1.83%
is expected to achieve the highest two-year sales CAGR through 2022.Dollar General Corp.
DG,
-0.26%
is the only company to appear on this list based on consensus sales growth estimates and the Jefferies recommended list.Don’t miss: These 15 Dividend Aristocrat stocks have been the best income builders
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Eat, drink and be merry: Here’s where shoppers have been spending the most money this holiday season
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Restaurants are set to become the biggest winners of a holiday season that could turn out to be the most normalized since the onset of the pandemic.
That’s according to a new Mastercard SpendingPulse survey released on Monday, which showed spending at dining establishments surging 15.1% over the 2021 holiday period. Total retail expenditures for the Nov. 1–to–Dec. 24 period in 2022 rose 7.6%, with in-store spending up 6.8% and online spending up 10.6%.
Restaurant spending beat out several other categories, such as apparel, where spending was up 4.4% from 2021, and electronics and jewelry, where a respective 5.3% and 5.4% less were spent, and department stores, which saw spending rise 1%.
“This holiday retail season looked different than years past,” said Steve Sadove, senior adviser for Mastercard and former CEO and chairman of Saks Inc. “Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings postpandemic.”
Government data for November showed consumer spending was up just 0.1%, reflecting cautiousness among households and price cutting by retailers to lure those hesitant shoppers in. But the data also showed more spending on holiday recreation and travel, expected to go in the books as a busy season even if deadly winter storm may have wreaked havoc on the plans of many Americans over the Christmas weekend.
Of course, even as some merrymakers felt confident enough to make more plans and see more friends and family this year, the virus of course continues to cause illness and death. The U.S. reported 70,000 newly diagnosed cases for the first time since September on Thursday, while 422 people died of COVID-19 on Wednesday.
Don’t miss: As COVID cases rise, how to steer clear of viruses during the holiday season
Also see: 4 tips for staying healthy while traveling during this ‘tripledemic’ cold and flu season
The Mastercard SpendingPulse data measure in-store and online retail sales for all payment forms and are not inflation-adjusted.
As for the companies that might be benefiting from that increased traffic, the year-end cheer probably won’t be enough to make a dent in what has been a difficult year with would-be consumers juggling worries over inflation, rising interest rates and a war in Europe.
The Invesco Dynamic Leisure & Entertainment exchange-traded fund
PEJ,
+0.79% ,
whose holdings include Chipotle Mexican Grill
CMG,
+0.32% ,
McDonald’s
MCD,
+0.68%
and First Watch Restaurant Group
FWRG,
+0.42% ,
has gained 6.5% to date in the fourth quarter and is down 20% for the year as of Thursday. The broad benchmark S&P 500
SPX,
+0.59%
is poised for a nearly 20% loss in 2022.Read: How a Santa Claus rally, or lack thereof, sets the stage for the stock market in first quarter
And: Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices
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21 dividend stocks yielding 5% or more of companies that will produce plenty of cash in 2023
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When the stock market has jumped two days in a row, as it has now, it is easy to become complacent.
But the Federal Reserve isn’t finished raising interest rates, and recession talk abounds. Stock investors aren’t out of the woods yet. That can make dividend stocks attractive if the yields are high and the companies produce more cash flow than they need to cover the payouts.
Below is a list of 21 stocks drawn from the S&P Composite 1500 Index
SP1500,
+3.12%
that appear to fit the bill. The S&P Composite 1500 is made up of the S&P 500
SPX,
+3.06% ,
the S&P 400 Mid Cap Index
MID,
+3.18%
and the S&P Small Cap 600 Index
SML,
+3.80% .The purpose of the list is to provide a starting point for further research. These stocks may be appropriate for you if you are looking for income, but you should do your own assessment to form your own opinion about a company’s ability to remain competitive over the next decade.
Cash flow is key
One way to measure a company’s ability to pay dividends is to look at its free cash flow yield. Free cash flow is remaining cash flow after planned capital expenditures. This money can be used to pay for dividends, buy back shares (which can raise earnings and cash flow per share), or fund acquisitions, organic expansion or for other corporate purposes.
If we divide a company’s estimated annual free cash flow per share by its current share price, we have its estimated free cash flow yield. If we compare the free cash flow yield to the current dividend yield, we may see “headroom” for cash to be deployed in ways that can benefit shareholders.
For this screen, we began with the S&P Composite 1500, then narrowed the list as follows:
- Dividend yield of at least 5.00%.
- Consensus free cash flow estimate available for calendar 2023, among at least five analysts polled by FactSet. We used calendar-year estimates, even though fiscal years for many companies don’t match the calendar.
- Estimated 2023 free cash flow yield of at least double the current dividend yield.
For real-estate investment trusts, dividend-paying ability is measured by funds from operations (FFO), a non-GAAP figure that adds depreciation and amortization back to earnings. Adjusted funds from operations (AFFO) takes this a step further, subtracting cash expected to be used to maintain properties. So for the two REITs on the list, the FCF yield column makes use of AFFO.
For many companies in the financial sector, especially banks and insurers, free cash flow figures aren’t available, so the screen made use of earnings-per-share estimates. These are generally considered to run close to actual cash flow for these heavily regulated industries.
Here are the 21 companies that passed the screen, with dividend yields of at least 5% and estimated 2023 FCF yields at least twice the current payout. They are sorted by dividend yield:
Company Ticker Type Dividend yield Estimated 2023 FCF yield Estimated “headroom” Uniti Group Inc. UNIT,
+7.36% Real-Estate Investment Trusts 8.33% 25.25% 16.92% Hanesbrands Inc. HBI,
+5.56% Apparel/ Footwear 8.33% 17.29% 8.96% Kohl’s Corp. KSS,
+5.80% Department Stores 7.68% 16.72% 9.04% Rent-A-Center Inc. RCII,
+10.40% Finance/ Rental/ Leasing 7.52% 17.26% 9.73% Macerich Co. MAC,
+8.18% Real-Estate Investment Trusts 7.43% 18.04% 10.60% Devon Energy Corp. DVN,
+5.72% Oil & Gas Production 7.13% 14.47% 7.33% AT&T Inc. T,
+1.19% Major Telecommunications 6.98% 14.82% 7.84% Newell Brands Inc. NWL,
+5.16% Industrial Conglomerates 6.59% 17.42% 10.82% Dow Inc. DOW,
+2.96% Chemicals 6.18% 15.63% 9.45% LyondellBasell Industries NV LYB,
+3.64% Chemicals 6.09% 16.07% 9.99% Scotts Miracle-Gro Co. Class A SMG,
+5.01% Chemicals 6.04% 12.68% 6.65% Diamondback Energy Inc. FANG,
+5.23% Oil & Gas Production 5.56% 13.63% 8.08% Best Buy Co. Inc. BBY,
+5.86% Electronics/ Appliance Stores 5.53% 14.08% 8.55% Viatris Inc. VTRS,
+5.62% Pharmaceuticals 5.50% 28.95% 23.45% Prudential Financial Inc. PRU,
+5.66% Life/ Health Insurance 5.38% 13.30% 7.91% Ford Motor Co. F,
+7.76% Motor Vehicles 5.23% 15.95% 10.72% Invesco Ltd. IVZ,
+6.76% Investment Managers 5.23% 14.95% 9.73% Franklin Resources Inc. BEN,
+4.37% Investment Managers 5.17% 13.21% 8.04% Kontoor Brands Inc. KTB,
+0.73% Apparel/ Footwear 5.17% 14.15% 8.98% Seagate Technology Holdings PLC STX,
+4.09% Computer Peripherals 5.11% 13.19% 8.07% Foot Locker Inc. FL,
+1.35% Apparel/ Footwear Retail 5.03% 15.52% 10.49% Source: FactSet Any stock screen has its limitations. If you are interested in stocks listed here, it is best to do your own research, and it is easy to get started by clicking the tickers in the table for more information about each company. Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.
For the “estimated FCF yields,” consensus free cash flow estimates for calendar 2023 were used for all companies except the following:
-
For the REITs, (Uniti Group Inc.
UNIT,
+7.36%
and Macerich Co.
MAC,
+8.18%
), consensus AFFO estimates were used. -
Consensus EPS estimates were used for Prudential Financial Inc.
PRU,
+5.66% ,
Invesco Ltd.
IVZ,
+6.76%
and Franklin Resources Inc.
BEN,
+4.37% .
Don’t miss: Dividend yields on preferred stocks have soared. This is how to pick the best ones for your portfolio.
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Capital Strategies Group & Goldstein Financial Group Join Forces With Chicago Expansion
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CHICAGO, August 10, 2022 (Newswire.com)
–
Capital Strategies Group, Inc. is pleased to announce that it has joined forces with Goldstein Financial Group, LLC (“GFG”), an independent life insurance brokerage and consulting firm based in Chicago, Illinois. Capital Strategies is an M Financial affiliated insurance firm serving high-net-worth families and businesses throughout the Southeast and Midwest. Allan Goldstein, the Founder and Chief Executive Officer of GFG, is a seasoned life insurance industry entrepreneur with four decades of experience providing education and solutions for high-net-worth individuals and their advisors. In addition to Mr. Goldstein, Andrea Lechner, GFG’s Director of New Business and Operations, with 20 years of service to its clients, will join Capital Strategies in its Chicago office.“Working with Capital Strategies provides a natural succession plan for GFG, its clients, and the advisors with whom we work,” stated Allan Goldstein. “We came to the decision to combine forces, bringing together the GFG relationships in our local market coupled with the depth and strength provided by Capital Strategies,” he added. Mr. Goldstein is also a Principal of M Financial Group, the leading life insurance distribution, service, and product organization serving high-net-worth individuals, executives, and Fortune 1000 companies.
“Allan, who started his career in the actuarial field, has distinguished himself as an industry leader through his unique ability to bring an analytical approach to clients and advisors. This aptitude coupled with his established decades-long reputation in the Chicago market are invaluable. Allan and his team are a true asset for Capital Strategies,” stated David F. Byers Jr., J.D., LL.M, Managing Principal of Capital Strategies.
Throughout his career, Mr. Goldstein has been a featured speaker at leading industry events and to professional firms across the country. He has collaborated with trust and estate attorneys, wealth management firms, and trust companies. He has been published in the National Law Journal, Worth Magazine, and other publications.
With this alliance, Birmingham, Alabama-based Capital Strategies has further expanded its footprint into the Chicago market. In addition to Mr. Goldstein, Capital Strategies’ expansion into Chicago will be led by Mr. Byers; T. Hudson Williams, J.D., LL.M.; and William A. Worrell Jr.
As Managing Principal of Capital Strategies, Mr. Byers is an expert in tax planning, with over 25 years of experience. He is past President of FINSECA (formerly the Association of Advanced Life Underwriters, AALU), and he currently serves as Chair of its Estate Tax Working Group. Mr. Byers also serves as Chairman of the Board of M Financial. He is a frequent speaker for estate planning and CLE courses involving tax, insurance, and estate planning issues, including the Notre Dame Tax Institute and the Tulane Estate Planning Institute. Mr. Byers has authored articles in various tax publications, including Trusts & Estates Magazine.
As Tax Counsel for Capital Strategies, Mr. Williams works directly with clients’ estate planning attorneys to tailor the funding and ownership of life insurance contracts on the most tax-efficient basis. He often speaks on current issues intersecting tax and life insurance, and he co-authored “Switch Dollar and the Power of Deferral,” published in Trusts & Estates, with Mr. Byers and Lawrence Brody.
Mr. Worrell has been with Capital Strategies for over 23 years. As Senior Analyst, he specializes in working with wealth transfer clients. His areas of specialization include product design/analysis and economic modeling, along with managing and maintaining close client relationships. He holds the Series 7 and 63 securities licenses. He is a long-standing member of the Estate Planning Council of Birmingham.
…
For more information about Allan Goldstein, CLU, ChFC, RHU, please read his biography here.
For more information about Andrea Lechner, please read her biography here.
For more information about David F. Byers Jr., J.D., LL.M., please read his biography here.
For more information about T. Hudson Williams, J.D., LL.M., please read his biography here.
For more information about William A. Worrell Jr., please read his biography here.
…
ABOUT CAPITAL STRATEGIES GROUP, INC.
Founded in 1989, Capital Strategies is a wealth preservation-focused insurance firm serving ultra-high-net-worth families and businesses. Through a concierge insurance experience, the firm specializes in helping to minimize income and estate-tax liabilities by planning tax-efficient insurance strategies, facilitating contract placement, and performing timely reviews. As a shareholder firm of M Financial Group, Capital Strategies provides proprietary, differentiated insurance strategies that feature preferential pricing, custom design, and greater protection for clients. For more information about Capital Strategies Group, please visit www.CapitalStrategies.net.
BIRMINGHAM: 850 Shades Creek Parkway, Suite 300, Birmingham, Alabama 35209
CHICAGO: 740 Waukegan Road, Suite 310, Deerfield, Illinois 60015
…
DISCLOSURES
Securities and Investment Advisory Services offered through M Holdings Securities, Inc., A Registered Broker/Dealer and Investment Adviser, Member FINRA and SIPC. Capital Strategies Group, Inc. is independently owned and operated. Capital Strategies Group, Inc. is a member of M Financial Group. For further details regarding this relationship, please view our Disclosure Statement. Check the background of this Firm and/or Investment Professional on FINRA’s Broker Check. For important information related to M Securities, refer to the M Securities’ Client Relationship Summary (Form CRS) by navigating to https://mfin.com/m-securities. File #: 4877591.1
…
MEDIA CONTACT – Cami Gueguen | CAMIO PR | 512.215.4745 | cami@camiopr.com
Source: Capital Strategies Group, Inc.
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NBA Champion Dwight Howard Launches Jayde Life Investment Group
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NBA Champion Dwight Howard focuses on financial wellness with his new venture Jayde Life Investment Group. The firm offers legacy planning and financial literacy education.
Press Release
–
Aug 4, 2022
ATLANTA, August 4, 2022 (Newswire.com)
–
NBA Champion Dwight Howard launches Jayde Life Investment Group, a life insurance firm located in the Buckhead area of Atlanta, Georgia. The company is a boutique agency that specializes in legacy planning and asset protection for professional athletes and their families, high wage earners, celebrities, and small business owners.“Jayde Life has positioned itself as the go-to agency for financial education and tax-free investment strategies,” states Kim M. Braud, Jayde Life Managing Partner. “Our approach to the market is a bit different. As a young recruit straight out of high school and one of the highest earning players in the NBA celebrating his 18th year, Dwight’s vision is clear. He wants to educate players and provide strategies to grow and maintain their wealth. We are not here to write policies and disappear into the sunset. We want to provide sound financial education and mentorship to professional athletes and their families to lower to rate of bankrupt players exiting the league.”
Jayde Life offers Whole and Permanent Life, Term Life, Fixed Annuities, Fixed Index Annuities, Long Term Care, Short-Term and Long-Term Disability coverage, Trust and Estate Planning and Premium Financing. Their carriers include John Hancock, Allianz, AIG, Nationwide, North American Company, Symetra and other top A+ high net worth carriers.
The firm has also partnered with professional women’s sports to spearhead a national campaign to insure women across America. “Dwight has always been an advocate for women in sports, so partnering with athletes to reach the local community is a win for everyone,” states Braud. As the President of Howard’s non-profit organization, Grand Champions Foundation, Braud has found a way to close the financial literacy gap in the local community, utilizing professional athletes that normal everyday people can connect to. “Life insurance is a very difficult conversation to have, so we must use creative ways to get the message into the community,” she states. “Dwight cares and he wants to celebrate life. He wants athletes, their families, and the community to have the tools they need to make sound financial decisions.”
###
ABOUT JAYDE LIFE INVESTMENT GROUP
Jayde Life Investment Group is a life insurance firm founded by NBA Champion Dwight Howard. Jayde Life provides asset protection, income planning, legacy transfer insurance and financial literacy training in all 50 states. These diverse offerings help athletes, small business owners and others protect their assets. Jayde Life Investment Group is a privately owned company.Contact:
Kim M. Braud, Managing Partner
kim@jaydelife.com
770.652.7103Source: Jayde Life Investment Group
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New Website Lets People Send Notes After They Die
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A new website lets users send notes after they die. MyAfterNotes.com allows people to create notes to be delivered to friends and family upon their passing.
Press Release
–
updated: Dec 18, 2018
BURLESON, Texas, December 18, 2018 (Newswire.com)
–
MyAfterNotes.com announces the completion and launch of a new web service that allows people to create notes to be delivered when they die. This could be used to deliver final words of encouragement, last wishes, living wills, safe combinations, computer passwords, important instructions, notes, or anything else someone would need to send once they have died.“Creator Tommy Owen said the idea came to mind after his cousin was unexpectedly killed while on the job. He was there one day and gone the next,” says company spokesperson Kyp Shillam. “What were his passwords for his banking information? Where was the life insurance information? Did anyone know where the key to the safe was or where his funeral arrangements were stored? Were there any last wishes or words of encouragement for his family and friends? All these questions added such chaos and confusion to an already heartbreaking time for their family.”
After his cousin died, Tommy thought about his own life. If he could tell his wife and kids anything, what would it be? Would his wife know important information?
Kyp Shillam, company spokesperson
A professional web designer, Owen originally created MyAfterNotes.com for his own personal use. “He wanted to make his last words count – to leave his family with peace of mind knowing how much they were loved,” Shillam said of Owen’s intent with this groundbreaking web service.
But Owen quickly found there were many who shared the same concerns and wanted access to this revolutionary site. Born of tragedy, “His hope was for MyAfterNotes.com to take some of the sting out of death by giving people the opportunity to communicate with their loved ones even after they are gone,” Shillam said.
How does it work?
Subscribers choose 2-5 trusted Key Bearers with a code to open their notes upon their death. Owen says it’s important to note the Key Bearers have absolutely no access to the notes while the subscriber is alive – none. Once the subscriber dies and at least two Key Bearers activate their code, the notes will be released within three days unless the account holder stops the process.
How does the website know when the user dies?
Simple. Because there is no way to access real-time death records from across the nation or the world, the responsibility to activate the delivery of the notes is on the Key Bearers. Their only function and capability is submitting their special code when the time comes.
What if the Key Bearers are mistaken?
When two or more Key Bearers enter the special code, there is a 3-day hold before the notes are released via email and SMS notification. During that time, the subscriber will be notified by email and SMS that their codes have been activated. There is a three-day window to stop the process. If the subscriber does not stop the process, the notes will be released.
What does it cost?
The service is easy and affordable – an $18 one-time charge.
What kind of notes can be sent?
“After his cousin died, Tommy thought about his own life. If he could tell his wife and kids anything, what would it be? Would his wife know important information? He thought there had to be a way to tell her he loved her and the kids even after he was gone. MyAfterNotes.com is the best way he could think of to do that,” Shillam said, noting possible uses for MyAfterNotes.com:
- Love notes, encouragement and advice for loved ones
- Instructions for co-workers and family
- Locations of important documents, keys, belongings
- Usernames, passwords, safe combinations
- Last wishes of any kind
“Tommy’s passion is to give those left behind one last memory, one last word, from the person they lost. It is something he knows he would treasure for the rest of his life. He hopes others feel the same and see the value in leaving their friends and family with one last word,” said Shillam.
Owen is available for media interviews at support@myafternotes.com.
Source: MyAfterNotes.com
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