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Tag: Newspaper publishing

  • Jeff Bezos killed Washington Post endorsement of Kamala Harris, paper reports

    Jeff Bezos killed Washington Post endorsement of Kamala Harris, paper reports

    The Washington Post Building at One Franklin Square Building in Washington, D.C., June 5, 2024.

    Andrew Harnik | Getty Images

    The Washington Post said Friday that it will not endorse a candidate in the presidential election this year — or ever again — breaking decades of tradition and sparking immediate criticism of the decision.

    But the newspaper also published an article by two staff reporters revealing that editorial page staffers had drafted an endorsement of Democratic nominee Kamala Harris over GOP nominee Donald Trump in the election.

    “The decision not to publish was made by The Post’s owner — Amazon founder Jeff Bezos,” the article said, citing two sources briefed on the events.

    Trump, while president, had been critical of the billionaire Bezos and the Post, which he purchased in 2013.

    The newspaper in 2016 and again in 2020 endorsed Trump’s election opponents, Hillary Clinton and President Joe Biden, in editorials that condemned the Republican in blunt terms.

    In a 2019 lawsuit, Amazon claimed it had lost a $10 billion cloud computing contract with the Pentagon to Microsoft because Trump had used “improper pressure … to harm his perceived political enemy” Bezos.

    The Post since 1976 had regularly endorsed candidates for president, except for the 1988 race. All those endorsements had been for Democrats.

    In a statement to CNBC, when asked about Bezos’ purported role in killing the endorsement, Post chief communications officer Kathy Baird said, “This was a Washington Post decision to not endorse, and I would refer you to the publisher’s statement in full.”

    The Post on Friday evening published a third article, signed by opinion columnists for the newspaper, who said, “The Washington Post’s decision not to make an endorsement in the presidential campaign is a terrible mistake.”

    “It represents an abandonment of the fundamental editorial convictions of the newspaper that we love, and for which we have worked a combined 218 years,” the column said. “This is a moment for the institution to be making clear its commitment to democratic values, the rule of law and international alliances, and the threat that Donald Trump poses to them — the precise points The Post made in endorsing Trump’s opponents in 2016 and 2020.”

    CNBC has requested comment from Amazon, where Bezos remains the largest shareholder.

    Amazon founder Jeff Bezos arrives for his meeting with British Prime Minister Boris Johnson at the UK diplomatic residence in New York City, Sept. 20, 2021.

    Michael M. Santiago | Getty Images News | Getty Images

    Post publisher and chief executive Will Lewis, in an article published online explaining the decision, wrote, “The Washington Post will not be making an endorsement of a presidential candidate in this election. Nor in any future presidential election.”

    “We are returning to our roots of not endorsing presidential candidates,” Lewis wrote.

    “We recognize that this will be read in a range of ways, including as a tacit endorsement of one candidate, or as a condemnation of another, or as an abdication of responsibility,” he wrote.

    “That is inevitable. We don’t see it that way. We see it as consistent with the values The Post has always stood for and what we hope for in a leader: character and courage in service to the American ethic, veneration for the rule of law, and respect for human freedom in all its aspects.”

    Seven of the 13 paragraphs of Lewis’ article either quoted at length or referred to Post Editorial Board statements in 1960 and 1972 explaining the paper’s rationale for not endorsing presidential candidates in those years, which included its identity as “an independent newspaper.”

    Lewis noted that the paper had endorsed Jimmy Carter in 1976 “for understandable reasons at the times” — which he did not identify.

    “But we had it right before that, and this is what we are going back to,” Lewis wrote.

    “Our job as the newspaper of the capital city of the most important country in the world is to be independent,” he wrote. “And that is what we are and will be.”

    Post editor-at-large Robert Kagan, a member of the paper’s opinions section, resigned following the decision, multiple news outlets reported.

    More than 10,000 reader comments were posted on Lewis’ article, many of them blasting the Post for its decision and saying they were canceling their subscriptions.

    “The most consequential election in our country, a choice between Fascism and Democracy, and you sit out? Cowards. Unethical, fearful cowards,” wrote one comment. “Oh, and by the way, I’m canceling my subscription, because you are putting business ahead of ethics and morals.”

    The announcement came days after Mariel Garza, the head of The Los Angeles Times‘ editorial board, resigned in protest after that paper’s owner, Patrick Soon-Shiong, decided against running a presidential endorsement.

    “I am resigning because I want to make it clear that I am not okay with us being silent,” Garza told the Columbia Journalism Review. “In dangerous times, honest people need to stand up. This is how I’m standing up.”

    Soon-Shiong, like Bezos, is a billionaire.

    Marty Baron, the former editor of The Washington Post, called that paper’s decision “cowardice, with democracy as its casualty.”

    ″@realdonaldtrump will see this as an invitation to further intimidate owner @jeffbezos (and others),” Baron wrote. “Disturbing spinelessness at an institution famed for courage.”

    The Washington Post Guild, the union that represents the newspaper’s staff, in a statement posted on the social media site X said it was “deeply concerned that The Washington Post — an American news institution in the nation’s capital — would make a decision to no longer endorse presidential candidates, especially a mere 11 days ahead of an immensely consequential election.”

    “The message from our chief executive, Will Lewis — not from the Editorial Board itself — makes us concerned that management interfered with the work of our members in Editorial,” the Guild said in the statement, which noted the paper’s reporting about Bezos’ role in the decision.

    “We are already seeing cancellations from once loyal readers,” the Guild said. “This decision undercuts the work of our members at a time when we should be building our readers’ trust, not losing it.”

    Read more CNBC politics coverage

    Former Post reporters Bob Woodward and Carl Bernstein, whose stories about the Watergate break-in during the Nixon administration won the newspaper a Pulitzer Prize for Public Service, in a statement said, “We respect the traditional independence of the editorial page, but this decision 11 days out from the 2024 presidential election ignores the Washington Post’s own overwhelming reportorial evidence on the threat Donald Trump poses to democracy.”

    “Under Jeff Bezos’s ownership, the Washington Post’s news operation has used its abundant resources to rigorously investigate the danger and damage a second Trump presidency could cause to the future of American democracy and that makes this decision even more surprising and disappointing, especially this late in the electoral process,” Woodward and Bernstein said.

    Post columnist Karen Attiah, in a post on the social media site Threads, wrote, “Today has been an absolute stab in the back.”

    “What an insult to those of us who have literally put our careers and lives on the line to call out threats to human rights and democracy,” Attiah wrote.

    Rep. Ted Lieu, a Democrat from California, in his own tweet on the news wrote, “The first step towards fascism is when the free press cowers in fear.”

    Trump in August told Fox Business News that Bezos called him after the Republican narrowly escaped an assassination attempt in July at a campaign rally in western Pennsylvania.

    “He was very nice even though he owns The Washington Post,” Trump said of Bezos.

    Bezos last posted on X on July 13, hours after the assassination attempt.

    “Our former President showed tremendous grace and courage under literal fire tonight,” Bezos wrote in that tweet. “So thankful for his safety and so sad for the victims and their families.”

    Trump on Friday met in Austin, Texas, with executives from the Bezos-owned space exploration company Blue Origin, among them CEO David Limp, the Associated Press reported

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  • Disney and other entertainment giants report after upbeat results from peers, but investors are getting harsher on companies that don’t deliver

    Disney and other entertainment giants report after upbeat results from peers, but investors are getting harsher on companies that don’t deliver

    Last month, Netflix Inc.
    NFLX,
    +1.80%

    stock jumped after it reported big subscriber gains and hiked prices. Last week, results from Paramount Global
    PARA,
    +15.44%

    beat expectations, sending shares of the streaming and entertainment giant on its best percentage gain in nearly a year, and Roku Inc.
    ROKU,
    +8.58%

    also offered an upbeat outlook.

    This week — as Walt Disney Co., Warner Bros. Discovery Inc., Lions Gate Entertainment Corp. and AMC Entertainment Holdings Inc. all report results — we’ll get a deeper sense of whether the entertainment industry is starting to make investors happy again, even if they make viewers less happy in the process.

    Those companies will report as the streaming industry, under pressure from investors to turn a better profit, consolidates and as platforms charge more to watch and cram more advertisements into shows and films.

    Cable TV providers and movie theaters, too, are trying to figure out a way forward as streaming becomes more prevalent. Even as Hollywood’s writers come back to work following a strike that shut down production, its actors are still striking, with issues surrounding AI usage to portray actors, streaming payments and other issues in the balance.

    Disney
    DIS,
    +2.14%
    ,
    which reports results on Wednesday, faces questions about losses at Disney+, efforts to cut billions in costs and stamp out streaming-account sharing, its planned takeover of the streaming platform Hulu and speculation over which of its large media properties it might sell. BofA analysts recently estimated that ESPN, which Disney has leaned on for years, could be worth around $24 billion. Meanwhile, activist investor Nelson Peltz has been angling for seats on Disney’s board, and its fight with Florida Gov. Ron DeSantis continues.

    Elsewhere, Warner Bros. Discovery
    WBD,
    +6.23%

    — the parent company of the streaming service Max, Warner Bros. Pictures, Discovery Channel, CNN and other channels — reports on Wednesday, as it tries to turn its reserves of intellectual property into franchise films. Meme-stock theater chain AMC
    AMC,
    +2.19%
    ,
    which also reports Wednesday, following upbeat results from rival Cinemark Holdings Inc.
    CNK,
    -2.43%
    .

    Sales at the theater chains have been lifted in recent months by “Barbie” and “Oppenheimer.” While both were original films, analysts have said the avalanche of sequels and remakes in theaters is unlikely to stop.

    The pressure to boost profits will ultimately affect what TV shows and films get made, and what viewers actually consume. And a report from FactSet on Friday found that investors have been more unkind than usual to companies whose results come up short of Wall Street’s expectations.

    That report found that through the third-quarter earnings season, companies whose earnings miss expectations have seen an average stock-price drop of 5.2% during the two days before the publication of the results through the two days after. If that figure holds, it would be the stock market’s biggest adverse reaction to an earnings miss since the second quarter of 2011.

    This week in earnings

    Among S&P 500 companies, 55 including one from the Dow, will report quarterly results during the week ahead.

    EV startup Rivian Automotive Inc.
    RIVN,
    +0.68%

    reports amid concerns about EV demand. Following Ticketmaster parent Live Nation Entertainment Inc.’s
    LYV,
    +3.53%

    blowout quarterly results last week, results from Madison Square Garden Entertainment Corp.
    MSGE,
    +1.03%

    will shed more light on people’s appetites for live entertainment. Results from digital marketing platform Klaviyo Inc.
    KVYO,
    +3.86%

    and fast-casual chain Cava Group Inc.
    CAVA,
    +5.49%

    — both recent IPOS — will offer a deeper look at digital ad budgets and a competitive restaurant backdrop, respectively.

    The New York Times Co.
    NYT,
    +0.91%

    also reports during the week. So do Planet Fitness Inc.
    PLNT,
    -0.09%
    ,
    Gilead Sciences
    GILD,
    +0.44%
    ,
    eBay Inc.
    EBAY,
    +3.98%

    and Take-Two Interactive Software
    TTWO,
    +1.03%
    .

    The call to put on your calendar

    Cybersecurity drama: Cyberattacks are getting more severe, and customers are starting to feel their effects more acutely. Against that backdrop, casino and resort operator MGM Resorts International
    MGM,
    +5.27%

    will report quarterly results on Wednesday, in the wake of a cyberattack that took down some of its systems. MGM has said that attack, which the company disclosed in September, would cost them roughly $100 million.

    The company said the fallout of that attack — which disrupted hotel bookings and put hotels on manual operations, resulting in long lines — was largely contained to September. But the SEC last week accused software company SolarWinds Corp.
    SWI,
    +1.74%

    of failing to disclose its purported cybersecurity vulnerabilities, potentially leaving other companies wondering whether they’re vulnerable to similar legal action.

    The numbers to watch

    The gig economy and delivery demand: Rival ride-hailing platforms Uber Technologies Inc. and Lyft Inc. report results on Tuesday and Wednesday, respectively. Maplebear Inc.
    CART,
    +0.94%
    ,
    better known as the grocery-delivery platform Instacart, also reports on Wednesday.

    Analysts have been kinder to Uber
    UBER,
    +2.73%
    ,
    the larger of the two ride-hailing companies. But Lyft has tried to cut its prices and roll out new services, including one that tries to match women and non-binary riders and drivers. The financials from all three companies will land after strong results from food-delivery platform DoorDash Inc.
    DASH,
    +5.35%
    ,
    which has expanded its services into retail an effort to compete with Instacart and other delivery providers. And they’ll fill in the picture of rider demand following the back-to-school season and a bigger push to get workers back into offices.

    Beyond ride-sharing, results from Uber and Instacart will narrow the lens on delivery demand, as some analysts question whether higher prices for basics and the return of student-loan payments might make food delivery more dispensable. Analysts also seem likely to zero on in those companies’ high-margin digital-ad businesses, as more e-commerce platforms try to turn their apps and websites into online billboard space.

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  • Inside Kanye West’s troubled Adidas partnership: Tears. Rage. Thrown shoes. Even a scrawled swastika.

    Inside Kanye West’s troubled Adidas partnership: Tears. Rage. Thrown shoes. Even a scrawled swastika.

    The ending of the partnership between the artist Kanye West, who now goes by Ye, in October 2022 appeared to come after weeks of his comments about Jewish people and Black Lives Matter, but the New York Times is reporting that the relationship was troubled from the very start.

    At a meeting on the collaborative creation of the very first shoe in 2013, Adidas
    ADS,
    -0.10%

    ADDYY,
    -0.03%

    designers were stunned when West rejected all of the ideas that were presented using fabric swatches on a table and a mood board, the seven-month investigation found. Instead, West, the Times reports, grabbed a sketch and drew a swastika in marker.

    The move shocked the Germans in the room. Germany has a strict ban on displaying the symbol of the Nazi era apart from for artistic purposes. Adding to the sense of horror, the company’s founder — Adolf, or “Adi,” Dassler, who died in 1978 — was a Nazi Party member, and the meeting took place close to Nuremberg, where leaders of the Third Reich were famously tried for crimes against humanity.

    A year ago this week, Adidas threw in the towel.

    West’s fixation on the Nazi era continued, the Times reports, when he later told a Jewish manager at Adidas to kiss a portrait of Adolf Hitler every day. He also told Adidas workers that he admired Hitler’s use and command of propaganda.

    West also brought porn to the workplace and made crude, sexual comments at meetings, according to the Times report. Before the swastika episode, West, according to the Times, had made Adidas executives watch porn at a meeting in his Manhattan apartment.

    In 2022 he reportedly ambushed executives with a porn film. Other workers complained to top managers that he had made angry sexual comments to them.

    The artist, said to have been diagnosed with bipolar disorder, also frequently cried or became angry during meetings, according to the Times investigation. In one instance in 2019, he reportedly moved the operation designing his shoes to Cody, Wyo., and ordered the Adidas team to relocate. In a meeting to discuss his demands with executives, he threw shoes around the room, the Times reports.

    Adidas sought to adapt to this behavior, given how valuable the West-established Yeezy brand was to the company, locked in a perennial battle for both revenue and buzz with its U.S.-based rival Nike Inc.
    NKE,
    -2.04%
    .
    Yeezy sales would rapidly surpass $1 billion a year and help Adidas resonate with young American customers.

    Ratings Game (July 2020): Gap hopes it can burnish its image with a new Kanye West clothing line, repeating the rapper’s brand success with Adidas

    Managers launched a group text chain they called the “Yzy hotline” to discuss his behavior. To reduce stress on individuals, the company is said to have rotated managers in and out of dealing directly with West.

    Over time, meanwhile, Adidas sweetened the terms of West’s deal. Under a 2016 contract, he was entitled to a 15% royalty on sales with a $15 million upfront payment as well as millions of dollars in Adidas stock. In 2019, a further $100 million a year was earmarked for marketing, but, in reality, West could spend those funds at will.

    A year ago this week, though, as public awareness of West’s problematic attitudes are remarks spiked, Adidas threw in the towel, and as sales of Yeezy shoes fell away, it warned it would record its first annual loss in decades. As West’s net worth plummeted, the company wrestled with the decision of how to dispense with its final $1.3 billion in Yeezy products, mulling options including disassembly and repurposing, donation to charity, and outright disposal.

    When a decision was reached to sell the product — in release batches — with some of the proceeds directed to charity and most of the rest flowing to Adidas, West, even then, was entitled to royalties.

    From the archives (October 2022): Kanye West is no longer a billionaire after Adidas shelves Yeezy partnership

    Also see (November 2022): Nike parts ways with Kyrie Irving as controversy swirls over Brooklyn Nets star’s apparent endorsement of antisemitic film

    After bottoming in October 2022, Adidas shares have mounted a 67% comeback, with relief over the company’s not having had to book a damaging loss on the Yeezy line one factor in the restoration of investor confidence.

    Adidas is quoted as having told the Times that it “has no tolerance for hate speech and offensive behavior, which is why the company terminated the Adidas Yeezy partnership,” while West reportedly declined requests for interviews and comment.

    The Times investigation is said to have been based on access to hundreds of previously undisclosed internal records.

    Read on: Michael Jordan is now worth $3 billion. Here’s what billionaire athletes have in common.

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  • Dividend stocks are dirt cheap. It may be time to back up the truck.

    Dividend stocks are dirt cheap. It may be time to back up the truck.

    The stock market always overreacts, and this year it seems as if investors believe dividend stocks have become toxic. But a look at yields on quality dividend stocks relative to the market underlines what may be an excellent opportunity for long-term investors to pursue growth with an income stream that builds up over the years.

    The current environment, in which you can get a yield of more than 5% yield on your cash at a bank or lock in a yield of 4.57% on a10-year U.S. Treasury note
    BX:TMUBMUSD10Y
    or close to 5% on a 20-year Treasury bond
    BX:TMUBMUSD20Y
    seems to have made some investors forget two things: A stock’s dividend payout can rise over the long term, and so can it is price.

    It is never fun to see your portfolio underperform during a broad market swing. And people have a tendency to prefer jumping on a trend hoping to keep riding it, rather than taking advantage of opportunities brought about by price declines. We may be at such a moment for quality dividend stocks, based on their yields relative to that of the benchmark S&P 500
    SPX.

    Drew Justman of Madison Funds explained during an interview with MarketWatch how he and John Brown, who co-manage the Madison Dividend Income Fund, BHBFX MDMIX and the new Madison Dividend Value ETF
    DIVL,
    use relative dividend yields as part of their screening process for stocks. He said he has never seen such yields, when compared with that of the broad market, during 20 years of work as a securities analyst and portfolio manager.

    Dividend stocks are down

    Before diving in, we can illustrate the market’s current loathing of dividend stocks by comparing the performance of the Schwab U.S. Equity ETF
    SCHD,
    which tracks the Dow Jones U.S. Dividend 100 Index, with that of the SPDR S&P 500 ETF Trust
    SPY.
    Let’s look at a total return chart (with dividends reinvested) starting at the end of 2021, since the Federal Reserve started its cycle of interest rate increases in March 2022:


    FactSet

    The Dow Jones U.S. Dividend 100 Index is made up of “high-dividend-yielding stocks in the U.S. with a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios,” according to S&P Dow Jones Indices.

    The end results for the two ETFs from the end of 2021 through Tuesday are similar. But you can see how the performance pattern has been different, with the dividend stocks holding up well during the stock market’s reaction to the Fed’s move last year, but trailing the market’s recovery as yields on CDs and bonds have become so much more attractive this year. Let’s break down the performance since the end of 2021, this time bringing in the Madison Dividend Income Fund’s Class Y and Class I shares:

    Fund

    2023 return

    2022 return

    Return since the end of 2021

    SPDR S&P 500 ETF Trust

    14.9%

    -18.2%

    -6.0%

    Schwab U.S. Dividend Equity ETF

    -3.8%

    -3.2%

    -6.9%

    Madison Dividend Income Fund – Class Y

    -4.7%

    -5.4%

    -9.9%

    Madison Dividend Income Fund – Class I

    -4.7%

    -5.3%

    -9.7%

    Source: FactSet

    Dividend stocks held up well during 2022, as the S&P 500 fell more than 18%. But they have been left behind during this year’s rally.

    The Madison Dividend Income Fund was established in 1986. The Class Y shares have annual expenses of 0.91% of assets under management and are rated three stars (out of five) within Morningstar’s “Large Value” fund category. The Class I shares have only been available since 2020. They have a lower expense ratio of 0.81% and are distributed through investment advisers or through platforms such as Schwab, which charges a $50 fee to buy Class I shares.

    The opportunity — high relative yields

    The Madison Dividend Income Fund holds 40 stocks. Justman explained that when he and Brown select stocks for the fund their investible universe begins with the components of the Russell 1000 Index
    RUT,
    which is made up of the largest 1,000 companies by market capitalization listed on U.S. exchanges. Their first cut narrows the list to about 225 stocks with dividend yields of at least 1.1 times that of the index.

    The Madison team calculates a stock’s relative dividend yield by dividing its yield by that of the S&P 500. Let’s do that for the Schwab U.S. Equity ETF
    SCHD
    (because it tracks the Dow Jones U.S. Dividend 100 Index) to illustrate the opportunity that Justman highlighted:

    Index or ETF

    Dividend yield

    5-year Avg. yield 

    10-year Avg. yield 

    15-year Avg. yield 

    Relative yield

    5-year Avg. relative yield 

    10-year Avg. relative yield 

    15-year Avg. relative yield 

    Schwab U.S. Dividend Equity ETF

    3.99%

    3.41%

    3.20%

    3.16%

    2.6

    2.1

    1.8

    1.6

    S&P 500

    1.55%

    1.62%

    1.79%

    1.92%

    Source: FactSet

    The Schwab U.S. Equity ETF’s relative yield is 2.6 — that is, its dividend yield is 2.6 times that of the S&P 500, which is much higher than the long-term averages going back 15 years. If we went back 20 years, the average relative yield would be 1.7.

    Examples of high-quality stocks with high relative dividend yields

    After narrowing down the Russell 1000 to about 225 stocks with relative dividend yields of at least 1.1, Justman and Brown cut further to about 80 companies with a long history of raising dividends and with strong balance sheets, before moving further through a deeper analysis to arrive at a portfolio of about 40 stocks.

    When asked about oil companies and others that pay fixed quarterly dividends plus variable dividends, he said, “We try to reach out to the company and get an estimate of special dividends and try to factor that in.” Two examples of companies held by the fund that pay variable dividends are ConocoPhillips
    COP,
    -0.29%

    and EOG Resources Inc.
    EOG,
    +0.52%
    .

    Since the balance-sheet requirement is subjective “almost all fund holdings are investment-grade rated,” Justman said. That refers to credit ratings by Standard & Poor’s, Moody’s Investors Service or Fitch Ratings. He went further, saying about 80% of the fund’s holdings were rated “A-minus or better.” BBB- is the lowest investment-grade rating from S&P. Fidelity breaks down the credit agencies’ ratings hierarchy.

    Justman named nine stocks held by the fund as good examples of quality companies with high relative yields to the S&P 500:

    Company

    Ticker

    Dividend yield

    Relative yield

    2023 return

    2022 return

    Return since the end of 2021

    CME Group Inc. Class A

    CME,
    +0.47%
    2.04%

    1.3

    31%

    -23%

    1%

    Home Depot, Inc.

    HD,
    -0.39%
    2.79%

    1.8

    -3%

    -22%

    -25%

    Lowe’s Cos., Inc.

    LOW,
    +0.27%
    2.17%

    1.4

    3%

    -21%

    -19%

    Morgan Stanley

    MS,
    -1.54%
    4.24%

    2.7

    -3%

    -10%

    -13%

    U.S. Bancorp

    USB,
    -0.25%
    5.89%

    3.8

    -22%

    -19%

    -37%

    Medtronic PLC

    MDT,
    -4.32%
    3.62%

    2.3

    1%

    -23%

    -22%

    Texas Instruments Inc.

    TXN,
    -0.21%
    3.30%

    2.1

    -3%

    -10%

    -12%

    United Parcel Service Inc. Class B

    UPS,
    -0.16%
    4.17%

    2.7

    -8%

    -16%

    -23%

    Union Pacific Corp.

    UNP,
    +1.52%
    2.52%

    1.6

    2%

    -16%

    -15%

    Source: FactSet

    Click on the tickers for more about each company, fund or index.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Now let’s see how these companies have grown their dividend payouts over the past five years. Leaving the companies in the same order, here are compound annual growth rates (CAGR) for dividends.

    Before showing this next set of data, let’s work through one example among the nine stocks:

    • If you had purchased shares of Home Depot Inc.
      HD,
      -0.39%

      five years ago, you would have paid $193.70 a share if you went in at the close on Oct. 10, 2018. At that time, the company’s quarterly dividend was $1.03 cents a share, for an annual dividend rate of $4.12, which made for a then-current yield of 2.13%.

    • If you had held your shares of Home Depot for five years through Tuesday, your quarterly dividend would have increased to $2.09 a share, for a current annual payout of $8.36. The company’s dividend has increased at a compound annual growth rate (CAGR) of 15.2% over the past five years. In comparison, the S&P 500’s weighted dividend rate has increased at a CAGR of 6.24% over the past five years, according to FactSet.

    • That annual payout rate of $8.36 would make for a current dividend yield of 2.79% for a new investor who went in at Tuesday’s closing price of $299.22. But if you had not reinvested, the dividend yield on your five-year-old shares (based on what you would have paid for them) would be 4.32%. And your share price would have risen 54%. And if you had reinvested your dividends, your total return for the five years would have been 75%, slightly ahead of the 74% return for the S&P 500 SPX during that period.

    Home Depot hasn’t been the best dividend grower among the nine stocks named by Justman, but it is a good example of how an investor can build income over the long term, while also enjoying capital appreciation.

    Here’s the dividend CAGR comparison for the nine stocks:

    Company

    Ticker

    Five-year dividend CAGR

    Dividend yield on shares purchased five years ago

    Dividend yield five years ago

    Current dividend yield

    Five-year price change

    Five-year total return

    CME Group Inc. Class A

    CME,
    +0.47%
    9.46%

    2.44%

    1.55%

    2.04%

    20%

    42%

    Home Depot Inc.

    HD,
    -0.39%
    15.20%

    4.32%

    2.13%

    2.79%

    54%

    75%

    Lowe’s Cos, Inc.

    LOW,
    +0.27%
    18.04%

    4.14%

    1.81%

    2.17%

    91%

    109%

    Morgan Stanley

    MS,
    -1.54%
    23.16%

    7.62%

    2.69%

    4.24%

    80%

    108%

    U.S. Bancorp

    USB,
    -0.25%
    5.34%

    3.60%

    2.78%

    5.89%

    -39%

    -26%

    Medtronic PLC

    MDT,
    -4.32%
    6.65%

    2.90%

    2.10%

    3.62%

    -20%

    -9%

    Texas Instruments Inc.

    TXN,
    -0.21%
    11.04%

    5.24%

    3.10%

    3.30%

    59%

    82%

    United Parcel Service Inc. Class B

    UPS,
    -0.16%
    12.23%

    5.56%

    3.12%

    4.17%

    33%

    56%

    Union Pacific Corp.

    UNP,
    +1.52%
    10.20%

    3.37%

    2.07%

    2.52%

    34%

    49%

    Source: FactSet

    This isn’t to say that Justman and Brown have held all of these stocks over the past five years. In fact, Lowe’s Cos.
    LOW,
    +0.27%

    was added to the portfolio this year, as was United Parcel Service Inc.
    UPS,
    -0.16%
    .
    But for most of these companies, dividends have compounded at relatively high rates.

    When asked to name an example of a stock the fund had sold, Justman said he and Brown decided to part ways with Verizon Communications Inc.
    VZ,
    -0.94%

    last year, “as we became concerned about its fundamental competitive position in its industry.”

    Summing up the scene for dividend stocks, Justman said, “It seems this year the market is treating dividend stocks as fixed-income instruments. We think that is a short-term issue and that this is a great opportunity.”

    Don’t miss: How to tell if it is worth avoiding taxes with a municipal-bond ETF

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  • AMC, Virgin Orbit, Marathon Oil, Walmart, and More Stock Market Movers

    AMC, Virgin Orbit, Marathon Oil, Walmart, and More Stock Market Movers

    Stock futures fluctuated Tuesday following a mixed session on Wall Street that saw the


    Dow Jones Industrial Average


    and


    S&P 500


    rise after a spike in oil prices.

    These stocks were poised to make moves Tuesday:

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  • Biden approves Willow oil-drilling permit in Alaska. It’s a ‘carbon bomb,’ one group says.

    Biden approves Willow oil-drilling permit in Alaska. It’s a ‘carbon bomb,’ one group says.

    The Biden administration approved the large-scale and controversial Willow drilling project for ConocoPhillips on Alaska’s oil-rich North Slope on Monday.

    The approval, although with some conditions, is one of President Joe Biden’s most consequential climate choices of his first administration.

    It’s a blemish, say environmental groups, to…

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  • 6 cheap stocks that famed value-fund manager Bill Nygren says can help you beat the market

    6 cheap stocks that famed value-fund manager Bill Nygren says can help you beat the market

    These are tricky times in the stock market, so it pays to look to the best stock-fund managers for guidance on how to behave now. Veteran value investor Bill Nygren belongs in this camp, because the Oakmark Fund OAKMX he co-manages consistently and substantially outperforms its peers. 

    That isn’t easy, considering how many fund managers fail to do so. Nygren’s fund beats its Morningstar large-cap value index and category by more than four percentage points annualized over the past three years. It also outperforms at five and…

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  • These 20 stocks were the biggest winners of 2022

    These 20 stocks were the biggest winners of 2022

    Even during a year in which the S&P 500 index declined 19%, with 72% of its stocks in the red, there were plenty of winners.

    Before showing you the list of the best performers in the benchmark index, let’s look at a preview: Here’s how the 11 sectors of the S&P 500
    SPX,
    -0.25%

    performed for the year:

    Index

    2022 price change

    Forward P/E

    Forward P/E as of Dec. 31, 2021

    Energy

    59.0%

    9.7

    11.1

    Utilities

    -1.4%

    18.9

    20.4

    Consumer Staples

    -3.2%

    21.0

    21.8

    Health Care

    -3.6%

    17.6

    17.2

    Industrials

    -7.1%

    18.3

    20.8

    Financials

    -12.4%

    11.9

    14.6

    Materials

    -14.1%

    15.8

    16.6

    Real Estate

    -28.4%

    16.5

    24.2

    Information Technology

    -28.9%

    20.1

    28.1

    Consumer Discretionary

    -37.6%

    21.3

    33.2

    Communication Services

    -40.4%

    14.3

    20.8

    S&P 500

    -19.4%

    16.8

    21.4

    Source: FactSet

    Maybe you aren’t surprised to see that the energy sector was the only one to increase during 2022. But it might surprise you to see that despite the sector’s weighted price increase of 59%, its forward price-to-earnings ratio declined and remains very low relative to all other sectors.

    It might also surprise you that West Texas Intermediate crude oil
    CL.1,
    +2.69%

    gave up most of its gains from earlier in the year:


    FactSet

    The reason investors are still confident in energy stocks is that oil producers have remained cautious when it comes to capital spending. They don’t want to increase supply enough to cause prices to crash, as they did in the run-up to the summer of 2014, after which prices fell steadily through early 2016, causing bankruptcies and consolidation in the industry.

    Now the oil companies are focusing on maintaining supply, raising dividends and buying back shares, as Occidental Petroleum Corp.’s
    OXY,
    +1.14%

    chief executive explained in a recent interview with Matt Peterson. Click here for more about Occidental and the long-term supply/demand outlook for oil.

    Best-performing S&P 500 stocks of 2022

    Here are the 20 stocks in the benchmark index that rose most during 2022, excluding dividends. Proving that there are always exceptions, not all of them are in the energy sector.

    Company

    Ticker

    Sector

    Industry

    2022 price change

    Occidental Petroleum Corp.

    OXY,
    +1.14%
    Energy

    Oil & Gas Production

    117.3%

    Hess Corp.

    HES,
    +0.68%
    Energy

    Oil & Gas Production

    91.6%

    Marathon Petroleum Corp.

    MPC,
    +0.18%
    Energy

    Oil Refining/ Marketing

    81.9%

    Exxon Mobil Corp.

    XOM,
    +1.01%
    Energy

    Integrated Oil

    80.3%

    Schlumberger Ltd.

    SLB,
    +1.04%
    Energy

    Contract Drilling

    78.5%

    APA Corp.

    APA,
    +1.68%
    Energy

    Integrated Oil

    73.6%

    Halliburton Co.

    HAL,
    +1.23%
    Energy

    Oil & Gas Production

    72.1%

    First Solar Inc.

    FSLR,
    +0.68%
    Information Technology

    Semiconductors

    71.9%

    Valero Energy Corp.

    VLO,
    +0.43%
    Energy

    Oil Refining/ Marketing

    68.9%

    Marathon Oil Corp.

    MRO,
    +1.08%
    Energy

    Oil & Gas Production

    64.9%

    ConocoPhillips

    COP,
    +1.38%
    Energy

    Oil & Gas Production

    63.5%

    Steel Dynamics Inc.

    STLD,
    -0.72%
    Materials

    Steel

    57.4%

    EQT Corp.

    EQT,
    -0.12%
    Energy

    Oil & Gas Production

    55.1%

    Chevron Corp.

    CVX,
    +0.66%
    Energy

    Integrated Oil

    53.0%

    McKesson Corp.

    MCK,
    Health Care

    Medical Distributors

    50.9%

    Cardinal Health Inc.

    CAH,
    -0.46%
    Health Care

    Medical Distributors

    49.3%

    EOG Resources Inc.

    EOG,
    +0.69%
    Energy

    Oil & Gas Production

    45.8%

    Enphase Energy Inc.

    ENPH,
    -0.20%
    Information Technology

    Semiconductors

    44.8%

    Merck & Co. Inc.

    MRK,
    +0.12%
    Health Care

    Pharmaceuticals

    44.8%

    Cigna Corp.

    CI,
    +0.19%
    Health Care

    Managed Health Care

    44.3%

    Source: 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.

    Don’t Miss: These 20 stocks were the biggest losers of 2022

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  • These 20 energy stocks are worth a look if you think oil prices will soar in 2023

    These 20 energy stocks are worth a look if you think oil prices will soar in 2023

    Harris Kupperman, the president of Praetorian Capital, made a couple of interesting calls heading into 2022. He predicted that stocks of the giant tech-oriented companies that led the bull market would be sold off, and that oil prices would continue to rise through the end of 2022.

    The first prediction came true, while the second one for oil prices fizzled. After rising to $130 in March, oil prices have fallen back to where they started the year. Then again, that second prediction still could have made you a lot of money because the share prices of oil companies kept rising anyway.

    That leads to a new prediction for 2023 and a related stock screen below.

    Here’s a chart showing the movement of front-month contract prices for West Texas Intermediate (WTI) crude oil
    CL.1,
    -0.62%

    since the end of 2021:


    FactSet

    Even though Kupperman didn’t get his oil price call right, the energy sector of the S&P 500
    SPX,
    -1.20%

    was up 60% for 2022 through Dec. 27, excluding dividends. That is the only one of the 11 S&P 500 sectors to show a gain in 2022. And the energy sector is also cheapest relative to earnings expectations, with a forward price-to-earnings ratio of 9.8, compared with 16.7 for the full S&P 500.

    WTI pulled back from its momentary peak at $130.50 in early March, but that didn’t reverse the long-term trend of low capital spending by oil and natural gas producers, which has given investors confidence that supplies will remain tight.

    Vicki Hollub, the CEO of Occidental Petroleum Corp.
    OXY,
    -3.50%

    the best-performing S&P 500 stock of 2022 — said during a recent interview that there was “no pressure to increase production right now,” citing a $40 per barrel break-even point for oil prices.

    Kupperman now expects strong demand and low supplies to push oil as high as $200 a barrel in 2023.

    At the end of November, these 20 oil companies stood out as reasonable plays for 2023 based on expectations for free-cash-flow generation and dividend payments.

    For this next screen, we are only looking at ratings and consensus price targets among analysts polled by FactSet.

    There are 23 energy stocks in the S&P 500, and you can invest in that group easily by purchasing shares of the Energy Select SPDR ETF
    XLE,
    -2.24%
    .
    We can expand the list of large-cap names by looking at the components of the iShares Global Energy ETF
    IXC,
    -1.91%
    ,
    which holds all the energy stocks in the S&P 500 plus large players based outside the U.S.

    The top five holdings of IXC are:

    Company

    Ticker

    Country

    % of portfolio

    Share “buy” ratings

    Dec. 27 price

    Price target

    Implied 12-month upside potential

    Exxon Mobil Corp.

    XOM,
    -1.64%
    U.S.

    16.4%

    54%

    110.19

    118.89

    7.89%

    Chevron Corp.

    CVX,
    -1.48%
    U.S.

    11.5%

    54%

    179.63

    190.52

    6.06%

    Shell PLC

    SHEL,
    -0.70%
    U.K.

    7.8%

    83%

    23.67

    29.82

    25.99%

    TotalEnergies SE

    TTE,
    -1.40%
    France

    5.6%

    62%

    59.63

    64.40

    8.00%

    ConocoPhillips

    COP,
    -2.67%
    U.K.

    5.4%

    83%

    118.47

    140.84

    18.88%

    Source: FactSet

    Prices on the tables in this article are in local currencies.

    IXC holds 51 stocks. To expand the list for a stock screen, we added the energy stocks in the S&P 400 Mid Cap Index
    MID,
    -1.24%

    and the S&P Small Cap 600 Index
    SML,
    -1.89%

    to bring the list up to 91 companies, which we then pared to 83 covered by at least five analysts polled by FactSet.

    Here are the 20 companies in the list with at least 75% “buy” or equivalent ratings that have the most upside potential over the next 12 months, based on consensus price targets:

    Company

    Ticker

    Country

    Share “buy” ratings

    Dec. 27 price

    Price target

    Implied 12-month upside potential

    EQT Corp.

    EQT,
    -7.82%
    U.S.

    83%

    36.34

    59.14

    63%

    Green Plains Inc.

    GPRE,
    -2.72%
    U.S.

    80%

    29.80

    43.40

    46%

    Cameco Corp.

    CCO,
    +0.33%
    Canada

    100%

    30.48

    44.25

    45%

    Talos Energy Inc.

    TALO,
    -8.40%
    U.S.

    86%

    19.77

    28.67

    45%

    Ranger Oil Corp. Class A

    ROCC,
    -6.22%
    U.S.

    100%

    41.33

    58.00

    40%

    Tourmaline Oil Corp.

    TOU,
    -4.92%
    Canada

    100%

    71.40

    98.83

    38%

    Civitas Resources Inc.

    CIVI,
    -4.06%
    U.S.

    100%

    58.82

    80.83

    37%

    Inpex Corp.

    1605,
    -2.08%
    Japan

    88%

    1,477.00

    1,965.56

    33%

    Diamondback Energy Inc.

    FANG,
    -2.26%
    U.S.

    84%

    137.58

    181.90

    32%

    Santos Limited

    STO,
    -3.12%
    Australia

    100%

    7.20

    9.26

    29%

    Matador Resources Co.

    MTDR,
    -3.98%
    U.S.

    79%

    57.59

    73.75

    28%

    Targa Resources Corp.

    TRGP,
    -2.63%
    U.S.

    95%

    73.89

    94.05

    27%

    Cenovus Energy Inc.

    CVE,
    -2.55%
    Canada

    84%

    26.24

    33.22

    27%

    Shell PLC

    SHEL,
    -0.70%
    U.K.

    83%

    23.67

    29.82

    26%

    Ampol Limited

    ALD,
    -2.89%
    Australia

    85%

    28.29

    35.01

    24%

    EOG Resources Inc.

    EOG,
    -3.54%
    U.S.

    79%

    132.08

    157.52

    19%

    ConocoPhillips

    COP,
    -2.67%
    U.S.

    83%

    118.47

    140.84

    19%

    Repsol SA

    REP,
    -0.66%
    Spain

    75%

    15.05

    17.88

    19%

    Halliburton Co.

    HAL,
    -3.03%
    U.S.

    86%

    39.27

    45.95

    17%

    Marathon Petroleum Corp.

    MPC,
    -1.97%
    U.S.

    76%

    116.82

    132.56

    13%

    Source: 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.

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  • Cox First Media names industry veteran as its new publisher

    Cox First Media names industry veteran as its new publisher

    DAYTON, Ohio — A company that publishes three newspapers in Ohio has named a media industry veteran as its new publisher.

    Suzanne Klopfenstein will formally assume her new role with Cox First Media on Jan. 1, when current publisher Jana Collier retires. But the company said the Springfield, Ohio, native will begin working now with Collier and other executives to ensure a smooth transition.

    Dayton-based Cox First Media includes the Dayton Daily News, the Springfield News-Sun, the Journal-News, Dayton.com and Cox First Media advertising services. Together, these brands reach more than 444,000 people through daily print and digital publications, and the products have a total paid circulation of 104,805 and 172,000 newsletter subscribers.

    Klopfenstein has 30 years of media experience, most recently as senior director of sales for Cox First Media. She joined Cox Enterprises and the Dayton Daily News in 1993 and has been at the forefront of Cox First Media’s digital advertising and audience strategies.

    Collier has worked for Cox for 34 years and has been publisher since 2020.

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  • Semafor news site makes debut, intent on reinventing news

    Semafor news site makes debut, intent on reinventing news

    NEW YORK — The media organization Semafor launched on Tuesday with no less an ambition than reinventing the news story.

    Semafor is the brainchild of Ben Smith — former media reporter for The New York Times and, before that, former editor-in-chief of BuzzFeed — and Justin Smith, ex-CEO of Bloomberg Media. Since both men — who are not related — quit their previous jobs in January, Semafor has raised $25 million and hired more than 50 staff members.

    Semafor’s website, with a distinctive yellow-tinged backdrop that looks like a newspaper left out in the sun, went live shortly after 6 a.m. Eastern time on Tuesday, with eight newsletters in place as well as an events business.

    “We see, and are very excited about, a big opportunity to create a new and high-quality, independent global news brand that is obsessed with solving a number of big consumer frustrations that we see in the news business, primarily polarization,” said Justin Smith, the new company’s CEO.

    The founders also believe people suffer from information overload. While another media organization may seem an odd way to deal with that issue, they envision Semafor helping consumers make sense of all that’s out there.

    Stories contain separate sections that present the news, the author’s analysis, a counter to that viewpoint, perspective on how the issue is seen elsewhere in the world and a distillation of other stories on the topic.

    “Really good reporters do analysis all the time,” said Gina Chua, executive editor, a post she formerly held at Reuters. “That’s great in a story but oftentimes readers don’t know where the facts stop and the analysis begins. What we’re doing is very clearly separating them out.”

    It’s probably the highest-risk move Semafor is making, said Ben Smith, the organization’s editor-in-chief.

    Among the stories Semafor offered at launch: a previously unreported accident at SpaceX that injured a rocket technician, by Reed Albergotti, formerly of the Washington Post; and an investor group’s campaign to force Coca-Cola into the garbage business, by Liz Hoffmann, formerly of the Wall Street Journal.

    Ex-Washington Post writer David Weigel interviewed Pennsylvania Senate candidate John Fetterman and Ben Smith looked at his old shop, with a story about an identity crisis at The New York Times.

    Ben Smith’s story was Semafor’s centerpiece on Tuesday morning, next to a welcome to readers that he also penned. A series of clocks on top of the site showed the time in various cities, including Washington, Dubai and Beijing. A map of the world sat in the upper right corner.

    A breaking news column ran down the left side of the site and, on the right, readers were encouraged to sign up for various newsletters.

    Ben Smith will author a newsletter on the media, and others will center on business, technology and climate. Semafor Flagship, the day’s main newsletter, will be written from London, while Semafor Principals will look at Washington’s power players.

    The latter is currently considered the turf of Politico — another of Ben Smith’s former homes — and Axios, two of the century’s most successful media startups.

    Events will also be a big part of Semafor’s business, and 11 have already been held. They include a series on trust in news, sponsored by the Knight Foundation, that featured Ben Smith’s interview with Tucker Carlson.

    “It’s an extension of our journalism, it’s very very popular with clients and an important way to monetize news,” Justin Smith said.

    Another event is planned for December, when many African leaders will be in Washington. Semafor is anticipating worldwide expansion, making Africa the first area overseas where it is investing in reporting.

    At its start, the company is looking to make money through advertising and brand partnerships, said Rachel Oppenheim, chief revenue officer.

    The news site, www.semafor.com, will be available for free initially. After a year, the company will look for ways to charge for its service, Justin Smith said.

    “Ultimately, we believe we will have subscriptions over time,” he said.

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