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Tag: Retail Investors

  • Wall Street’s Top Warren Buffett Dividend Stocks to Buy Now

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    In a market obsessed with the next big thing, Warren Buffett has built his legacy by doing the opposite: owning great businesses and letting time do the heavy lifting.

    One thing many investors have learned from Buffett’s portfolio is that investment is not simply about chasing the highest yields and flashiest stocks. Instead, it’s all about consistent, resilient, and dependable performance over long periods. And if you doubt the results, well, just remember that Buffett grew Berkshire Hathaway from a modest and struggling textile manufacturer into the first non-tech trillion-dollar company in 2024.

    So, yes, if imitation is the highest form of flattery, then many investors are giving Buffett compliments by copying his portfolio. But for retail investors, investing in over 40 companies might not be the best option.

    That’s why today I used Warren Buffett’s portfolio to find high-quality dividend stocks and checked which ones are certified Wall Street favorites.

    Using Barchart’s Stock Screener, I selected the following filters to get my list:

    • Annual Dividend Yield (FWD), %: Left blank so I can rank them later from highest to lowest yield.

    • Current Analyst Rating: 4.5-5. Stocks that are “Strong Buy”, the best among the rest, according to Wall Street.

    • Number of Analysts: 16 or more. The higher the number, the stronger the rating confidence.

    • Power Investor Ideas: Warren Buffett Stocks.

    I ran the screen and got four results. I’ll cover the top three, from highest to lowest dividend yield.

    Let’s kick off this list with the first Warren Buffett dividend stock:

    Coca-Cola Company is one of the world’s most recognizable businesses and needs little introduction. It is the largest beverage company with over 500 products in its portfolio, including Coke, Sprite, and more. Coca-Cola continues to modernize its brands to remain culturally relevant. From the market’s perspective, though, they don’t need to put in much effort: KO is one of the most popular dividend stocks in the world, and it’s been featured in many of my top dividend stocks lists, like this recent one about the safest dividend stocks right now.

    Coca-Cola pays a forward annual dividend of $2.04, yielding around 3%. Plus, it has a 5-YR dividend growth of 21.25%, which I think is pretty decent for investors looking for a long-term, income-focused investment.

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  • TV host Jim Cramer says he had to hire a bodyguard after bashing GameStop’s meme rally in 2021

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    • Jim Cramer hired a bodyguard after threats from retail investors during the 2021 meme stock rally.

    • Cramer says he believed the stock never should have passed $400.

    • GameStop shares have been volatile since the meme craze. The stock is down 15% in 2025.

    Jim Cramer‘s take on the meme stock mania of 2021 drew the ire of a powerful group that was swaying markets during the pandemic: retail traders.

    The “Mad Money” host recounted that he had to hire a bodyguard after he angered some retail investors in 2021 at the peak of the pandemic’s bout of meme stock mania that boosted GameStop and other stocks to dizzying heights.

    Cramer, who was in the hospital recovering from a back surgery at the time, said he thought he was hallucinating when he saw shares of GameStop rip higher, he said during an episode of Bloomberg’s Odd Lots podcast on Monday.

    After shares of the gaming retailer quadrupled, Cramer said he ripped out his catheter and phoned Carl Quintana and David Faber, two of his fellow hosts at CNBC.

    “[I] said, ‘This is ridiculous. Everybody has to sell.’ After that, it was 24/7 bodyguard,” Cramer said.

    In January 2021, Cramer called into CNBC from the hospital and urged GameStop investors to sell.

    “Take the home run. Don’t go for the grand slam. Take the home run. You’ve already won. You’ve won the game. You’re done,” Cramer said on the network’s “Squawk on the Street” program.

    Cramer told retail investors to sell GameStop when he called into CNBC from the hospital.Noam Galai/Getty Images

    Cramer, a former hedge fund manager known for his bold stock calls on the air, said he believed GameStop stock shouldn’t have been valued above $400, which it briefly soared beyond as shares ascended to their peak during the pandemic.

    The stock ended up plummeting to around $10 a share in mid-February as hype for the struggling retailer finally died out.

    GameStop stock has been on a rollercoaster ever since its short-squeeze in 2021, but it retains a dedicated following among some retail investors, who periodically reignite fresh meme-like rallies.

    GameStop shares traded around $27 on Monday. The stock is down about 15% year-to-date.

    Read the original article on Business Insider

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  • South Korean Stocks Jump After Regulator Bans Short Selling

    South Korean Stocks Jump After Regulator Bans Short Selling

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    (Bloomberg) — South Korean stocks surged after regulators reimposed a full ban on short-selling for about eight months, a controversial move that authorities said was needed to stop illegal use of a trading tactic deployed regularly by hedge funds and other investors around the world.

    Most Read from Bloomberg

    The ban may help appeal to retail investors who have complained about the impact of shorting — the selling of borrowed shares by institutional investors — ahead of elections in April. However, it could deter some foreign investors and hold back MSCI Inc. from upgrading Korean equities to developed market from emerging status.

    The benchmark Kospi jumped as much as 4%, the most since January 2021, leading gains among major regional gauges in Asia on Monday. Stocks that had seen recent jumps in short-selling positions, including LG Energy Solution Ltd. and Posco Future M Co., were among the biggest boosts. The small-cap Kosdaq Index surged as much as 5.9%, the most since June 2020.

    The nation’s Financial Services Commission said on Sunday that new short-selling positions will be prohibited for equities on the Kospi 200 Index and Kosdaq 150 Index from Monday through the end of June 2024. Pandemic-era restrictions on the practice had been lifted for those two gauges only in May 2021, while the ban has remained in place for some 2,000 stocks.

    READ: South Korea to Ban Short-Selling of Stocks Until June 2024

    The move comes ahead of general elections in April for the National Assembly in South Korea, where public perception of short-selling remains deeply negative. Some ruling party lawmakers urged the government to temporarily end stock short-selling in response to demands by retail investors, who have staged protests against the tactic. Most short-selling in South Korea is conducted by institutional investors.

    “This policy reversal with respect to short selling is unwarranted at the current time,” said Wongmo Kang, an analyst at Exome Asset Management. “Many people view it as a political move aimed at next year’s general election,” he said, adding that the Korean market tend to be “heavily influenced by retail investors”.

    The Kospi surged earlier this year on frenzied buying of electric-vehicle battery names and chip stocks related to the artificial intelligence theme. Concerns over geopolitical tensions and high interest rates reversed the rally in recent months, driving the benchmark into a technical correction and nearly erasing its gain for the year.

    The latest ban is “unusual” as authorities are comprehensively prohibiting short selling at a time when there is no financial crisis, said Huh Jae-Hwan, an analyst at Eugene Investment & Securities.

    The financial regulator said the market had been disrupted due to “massive” naked short-selling by global investment banks. The so-called naked variety of the trade involves shorting shares without borrowing them first. The regulator said it is now seeking to make improvements to create a level playing field for retail investors, with stronger punishments for traders who break the rules.

    READ: Korea to Fine Banks for Naked Shorts; Local Media Name HSBC, BNP

    While regulators argue that naked short-selling inhibits fair price formation and hurts confidence, some observers say broad outright bans make the market less transparent and therefore less attractive. Some say the restrictions may keep the market from being upgraded in MSCI indexes.

    “It does compromise their status and certainly would hold them back from achieving developed market status,” said Gary Dugan, chief investment officer at Dalma Capital Management Ltd. “Given that there is an immediate ban there will be an initial sharp move higher in stock prices of companies that have had some short selling,” but the impact may be limited given low levels of short positions in the overall market, he said.

    “There is a possibility that international investors may lose trust and opportunity in the Korean market,” Exome Asset’s Kang said. “Without the ability for investors to express a view that markets and individual stocks are ‘mispriced’ to the upside, stock markets lose long term credibility on the world stage.”

    –With assistance from Abhishek Vishnoi.

    (An earlier version of this story was corrected to show the ban was partially lifted in May 2021)

    Most Read from Bloomberg Businessweek

    ©2023 Bloomberg L.P.

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  • Individual investors can subscribe to Floating Rate Savings Bonds, 2020 (Taxable), under RBI’s Retail Direct Portal

    Individual investors can subscribe to Floating Rate Savings Bonds, 2020 (Taxable), under RBI’s Retail Direct Portal

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    The Reserve Bank of India, in consultation with the Government of India, has expanded the basket of products offered through the Retail Direct Portal, allowing retail investors to subscribe to Floating Rate Savings Bonds (FRSBs), 2020 (Taxable).

    FRSBs are interest bearing, non-tradeable bonds, issued by the Government of India, which are repayable on the expiration of seven years from the date of issue.

    Currently, individual (retail) investors can invest in Central Government Securities, Treasury Bills, State Government Securities and Sovereign Gold Bonds through the Retail Direct Portal.

    RBI-Retail Direct Scheme (RDS) was launched on November 12, 2021. Under the Scheme, individual investors are permitted to open Retail Direct Gilt account with RBI, using an online portal (https://rbiretaildirect.org.in), through which investments in Government Securities can be made in primary and secondary market.

    The central bank said the scheme has brought Government Securities within easy reach of retail investors by simplifying the process of investment.

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  • Retail bets on zero day options are growing, but they may come at a price

    Retail bets on zero day options are growing, but they may come at a price

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    It’s a sophisticated trading strategy that’s becoming more accessible to retail investors.

    The strategy: Zero days-to-expiration options — which is essentially a one-day bet on the direction of the markets.

    And CBOE Global Markets CEO Ed Tilly is in the thick of it. His company offers them all five weekdays.

    “It’s really become attractive and garnered a lot of interest in being able to express that opinion [on the market] in the short term,” Tilley told CNBC’s “ETF Edge” earlier this week.

    Zero days-to-expiration options are contracts that expire the same day they’re traded. Tilly believes these options are appealing to investors by allowing them to invest at the shortest duration of time left in a contract.

    “At the end of the trading day, the next result of that trade is settled in cash — not physically delivered like a stock or an ETF,” he said.

    Most effective as a tool for pros?

    Simplify Asset Management also offers these zero day-to-expiration options. Michael Green, the firm’s chief strategist and portfolio manager, also notes they’ve become especially attractive to individuals.

    “About a third of [our] trades are coming from retail, and about two-thirds are coming from institutional,” he said.

    Despite growing retail interest, Green emphasizes zero days-to-expiration options may be most effective as a tool for pros.

    “We use the phrase sophisticated retail investors, and I think there’s actually a really important distinction there,” Green said. “In general, those who are buying options on a consistent basis are doing more speculation than they actually are being sophisticated in terms of a return profile. It tends to be a losing bet.”

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  • Bricks over bytes: New hard asset ETF places big bet on real estate

    Bricks over bytes: New hard asset ETF places big bet on real estate

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    A new ETF is making a big bet on real estate and other hard assets.

    CBRE’s Investment Management launched the IQ CBRE Real Assets ETF in May with the idea that it will deliver inflation protection in a rising interest rate environment.

    “The ETF market is lacking options in this space,” the ETF’s portfolio manager, Dan Foley, told CNBC’s “ETF Edge” on Thursday. “There’s a lot of opportunity here with secular changes in things like digital transformation, decarbonization, and then, just frankly, mispricing in the market.”

    Foley pointed out that global financial institutions are already in the space and said he believes retail investors should be, too.

    “This has been one of the most attractively positioned segments of the real asset universe,” Foley said. “Valuations are very compelling. … [The] elements are in place for a pretty strong total return going forward.”

    CBRE’s new ETF is hitting the marketplace as excitement around artificial intelligence companies and technology dominate Wall Street.

    Foley contended that hard assets, in general, are an important diversifier away from technology — particularly hot AI stocks. Plus, he noted that hard assets are crucial in enabling a digital economy in the first place.

    “Data centers, cell towers, enabling decarbonization — you need these leading infrastructure companies to make that investment. It’s driving growth that we think will drive a differentiated outcome,” he said.

    According to issuer New York Life Investments, the fund’s top holdings are in real estate and utilities. They include Public Storage, Crown Castle, Nextera Energy and Equinix (EQIX), which is considered a leader in data centers.

    Equinix shares are up 7% over the past month.

    “Equinix is a great example of a world-leading entity,” said Foley. “That’s the kind of asset you want. These are essential to the new economy.”

    Since the IQ CBRE Real Assets ETF launched May 10, it’s down almost 6%.

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  • Why Charles Schwab became a financial ‘supermarket’

    Why Charles Schwab became a financial ‘supermarket’

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    Charles Schwab Corp. is the largest publicly traded brokerage business in the United States with $7.5 trillion of client assets, and is a leading service provider for financial advisors, among the top exchange-traded fund asset managers and one of the biggest banks.

    “It would be fair to characterize Charles Schwab as a financial services supermarket,” Michael Wong, director of North American equity research and financial services at Morningstar, told CNBC. “Anything that you want, you can find in Charles Schwab’s platform.”

    Over the decades, Charles Schwab helped usher in a low-cost investing revolution while surviving market crashes and fierce competition — even when the game was taken up a notch to zero-fee commissions in 2019. 

    “Inherently, this is a scale business. The larger you are, the more efficient you are from an expense perspective,” Alex Fitch, portfolio manager for the Oakmark Select Fund and the Oakmark Equity and Income Fund, which invests in Charles Schwab, told CNBC. “It enables you to cut prices.”

    Various facets of Charles Schwab’s business compete against many legacy full-service brokers and investment bankers, including Fidelity, Edward Jones, Interactive Brokers, Stifel, JPMorgan, Morgan Stanley and UBS. And, it has to battle in the financial tech market against companies like Robinhood, Ally Financial and SoFi. 

    The melee reached a turning point in 2019 when Charles Schwab announced it was slashing commissions for stock, ETF and options trades to zero, matching the fees offered by Robinhood when it entered the market in 2014.

    Quickly, other companies followed suit and cut fees, which damaged TD Ameritrade’s business enough that Charles Schwab ended up acquiring it in a $26 billion all-stock deal less two months later.

    Charles Schwab was among the firms that benefited from the growth of retail investing during the coronavirus pandemic, and it’s now facing the consequences of Federal Reserve’s aggressive interest rate hikes. 

    That’s because of Charles Schwab’s huge banking business that generates revenue from sweep accounts, which are when the firm uses money leftover in investors’ portfolios and reinvests it in securities, like government bonds, to help turn a profit. 

    Charles Schwab told CNBC it was unable to participate in this documentary.

    Watch the video above to learn more about how Charles Schwab battled the ever-evolving financial services market – from fees to fintech – and how the reward doesn’t come without the risk. 

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  • Paytm Money launches bonds platform, making investing easier for retail investors

    Paytm Money launches bonds platform, making investing easier for retail investors

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    One97 Communications Limited (OCL), which owns the Paytm brand, on Monday said that its wholly-owned subsidiary Paytm Money Limited has launched bonds platform for retail investors in India. 

    The company is making bonds more accessible for retail investors by offering three distinct types: government bonds, corporate bonds and tax-free bonds. 

    Varun Sridhar, CEO, Paytm Money  said, “This is just the start of bonds investing in India. We believe bonds are the best way for first-time investors to enter capital markets and every Indian should have a diversified wealth portfolio with bonds being a core part of it. We will continue to bring the best technology-driven features for investors with the safety and security they deserve”, he said.

    Bonds on the Paytm Money app presents investors with all relevant information in one place and convert everything to yield so that investors can analyse and understand the returns they can earn, Paytm has said.

    Now, investors will not have to go to different sources for information on coupon vs yield, clean price vs dirty price, coupon frequency, coupon record dates etc, and instead find it all on one dashboard on the Paytm Money app

    The company believes that investing in debt markets in India is still very new and the country has the potential to have 100 million investors, for whom bonds would be the best way to enter capital markets.

    Bonds are a safe option for investors who are looking at a steady income and fixed returns on their investments and can diversify their portfolio for good returns. One can invest in Government of India Bonds, with maturity ranging from 16 days to 39 years, giving investors flexibility in managing their investments across the tenors. The yield on these bonds are currently between 7-7.3 per cent per annum. Further, bonds can be sold at any time, without any premature penalty/lock in, giving investors flexibility in managing their investments.

    Tax free bonds are a great investment for Indians. One can invest in tax free bonds, issued by PSUs, like NHAI, IRFC, REC etc at yields of up to 5.8 per cent per annum, and maturity, ranging from 5 months to 13 years. 

    Investors, who wish to expand their portfolio, can also look at corporate bonds like Indiabulls Housing Finance, Edelweiss etc where depending on the credit profile of the company, and the maturity of the bond, one can earn up to 15 per cent per annum.

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  • ‘Fed is not your friend’: Wells Fargo delivers warning ahead of key inflation report

    ‘Fed is not your friend’: Wells Fargo delivers warning ahead of key inflation report

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    As Wall Street gears up for key inflation data, Wells Fargo Securities’ Michael Schumacher believes one thing is clear: “The Fed is not your friend.”

    He warns Federal Reserve chair Jerome Powell will likely hold interest rates higher for longer, and it could leave investors on the wrong side of the trade.

    “You think about the history over the last 15 years. Whenever there was weakness, the Fed rides to the rescue. Not this time. The Fed cares about inflation, and that’s just about it,” the firm’s head of macro strategy told CNBC’s “Fast Money” on Monday. “So, the idea of lots of easing — forget it.”

    The Labor Department will release its January consumer price index, which reflects prices for good and services, on Tuesday. The producer price index takes the spotlight on Thursday.

    “Inflation could come off a fair bit. But we still don’t know exactly what the destination is,” said Schumacher. “[That] makes a big difference to the Fed – if that’s 3%, 3.25%, 2.75%. At this point, that’s up in the air.“

    He warns the year’s early momentum cannot coexist with a Fed that’s adamant about battling inflation.

    “Higher yields… doesn’t sound good to stocks,” added Schumacher, who thinks market optimism will ultimately fade. So far this year, the tech-heavy Nasdaq is up almost 14% while the broader S&P 500 is up about 8%.

    Schumacher also expects risks tied to the China spy balloon fallout and Russia tensions to create extra volatility.

    For relative safety and some upside, Schumacher still likes the 2-year Treasury Note. He recommended it during a “Fast Money” interview in Sept. 2022, saying it’s a good place to hide out. The note is now yielding 4.5% — a 15% jump since that interview.

    His latest forecast calls for three more quarter point rate hikes this year. So, that should support higher yields. However, Schumacher notes there’s still a chance the Fed chief Powell could shift course.

    “A number of folks in the committee lean fairly dovish,” Schumacher said. “If the economy does look a bit weaker, if the jobs picture does darken a fair bit, they may talk to Jay Powell and say ‘Look, we can’t go along with additional rate hikes. We probably need a cut or two fairly soon.’ He may lose that argument.”

    Disclaimer

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