Jonathan Kitchen/DigitalVision via Getty Images My Background Each investor faces a different set of circumstances. Now 38, I have been investing since I was 22 years old. My first investment in individual stocks was made in the heart of the financial crisis back in May of 2009. I purchased 40 shares (80, split-adjusted) of Toronto-Dominion Bank ( TD:CA ). However, for years before making that pur...
Jonathan Kitchen/DigitalVision via Getty Images My Background Each investor faces a different set of circumstances. Now 38, I have been investing since I was 22 years old. My first investment in individual stocks was made in the heart of the financial crisis back in May of 2009. I purchased 40 shares (80, split-adjusted) of Toronto-Dominion Bank ( TD:CA ). However, for years before making that purchase, I had been researching the best methods available for both wealth creation and preservation. I don't believe in taking unnecessary risks and feel the whims of the stock market are too fickle as far as capital gains are concerned to base my aspirations of financial freedom on. Dividend growth investing stands out as it is far more predictable that a healthy company might increase its dividend by 6% than to make any sort of prediction about stock price volatility in the near term. On this basis and from my initial foray into the markets with TD, I've built a portfolio of over 40 cash-flowing equities. My goal is ultimately to have a stock market portfolio that provides enough income to cover all of my expenses. While some feel that it only requires ten companies to achieve ultimate diversification, I believe there is room for a healthy level of redundancy to avoid the hiccups involved with company-specific performance. Regardless, I endeavor to always own the best-of-breed companies in their respective industries. I can live with slower growth if it means greater security for my invested dollars. This is a strategy I have researched over time and come to trust because it can work both for young investors and for those much further along on their financial journeys. While it may not turn heads at a dinner party, it has proven its value over the past few hundred years and remains as relevant as ever today in our digital age. Having noted the above, it is truly a great time to be a dividend growth investor. The companies I own are committed to rewarding shareholders, and ...
The number may surprise you -- but not necessarily in a good way. Gen Xers are a unique bunch. They were independent as kids, skeptical as young adults, and adaptable from a technology standpoint. But Gen Xers have also faced their share of financial challenges and upheaval. They had to grapple with the early 1900s recession as young workers, and then the dot-com bust and 2008 financial crisis dur...
The number may surprise you -- but not necessarily in a good way. Gen Xers are a unique bunch. They were independent as kids, skeptical as young adults, and adaptable from a technology standpoint. But Gen Xers have also faced their share of financial challenges and upheaval. They had to grapple with the early 1900s recession as young workers, and then the dot-com bust and 2008 financial crisis during their higher-earning years. Throw in the big shift from workplace pensions to self-funded retirement savings that occurred during Gen Xers' careers, and it's no wonder so many are sorely behind on building their nest eggs. Data from Fidelity reveals just how far behind Gen Xers are. The good news, though, is that some may still have time to catch up. The average 401(k) balance among boomers Gen Xers Last year, Fidelity reported that the average 401(k) plan balance among Gen Xers was $192,300. And that, frankly, is not a very encouraging number. If we apply the popular 4% rule to that savings balance, it results in an annual income of about $7,700, not accounting for inflation adjustments. Even with Social Security, that's not a ton of money to fall back on. How Gen Xers can make up for limited savings If you're an older member of Gen X and you're unhappy with your retirement savings balance, one thing you may want to consider is working longer. For example, if you're 59 now with plans to retire at 62, rethink that. See if you can plug away until age 65 (which is when Medicare eligibility begins) or 67 (which would be your full retirement age for Social Security) and grow your savings accordingly. Older Gen Xers may also want to consider delaying Social Security as long as possible. Waiting until age 70 gives you much larger monthly checks for life. If you're a younger Gen Xer, you might still have time to boost your 401(k) nicely. There are plenty of Gen Xers who are still in their 40s with a good 15 years of contributions ahead of them. Let's say you're 47 with $192,30...
Computer processor maker AMD (NASDAQ:AMD) will be reporting earnings this Tuesday afternoon. Here’s what you need to know. AMD beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $9.25 billion, up 35.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter beating analysts’ exp...
Computer processor maker AMD (NASDAQ:AMD) will be reporting earnings this Tuesday afternoon. Here’s what you need to know. AMD beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $9.25 billion, up 35.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter beating analysts’ expectations. Is AMD a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, analysts are expecting AMD’s revenue to grow 26.6% year on year to $9.69 billion, improving from the 24.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.32 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMD has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.4% on average. Looking at AMD’s peers in the processors and graphics chips segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Qorvo delivered year-on-year revenue growth of 8.4%, meeting analysts’ expectations, and Penguin Solutions reported flat revenue, topping estimates by 1.2%. Qorvo traded down 5.6% following the results while Penguin Solutions was also down 13.8%. Read our full analysis of Qorvo’s results here and Penguin Solutions’s results here. There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 9.6% on average over the last month. AMD is up 7.1% during the same time and is heading into earnings with an average analyst price target of $289.23 (compared to the current share price of $236.79). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as lon...
DutchScenery/iStock Editorial via Getty Images European banks are enjoying their best run in years. Thanks to a steeper yield curve, resilient credit quality, healthy earnings, and attractive capital returns, sentiment has shifted massively in their favor, lifting the sector to levels that were unthinkable not long ago. Dutch champion ING Groep ( ING ) hasn't missed out. With a weaker dollar kicki...
DutchScenery/iStock Editorial via Getty Images European banks are enjoying their best run in years. Thanks to a steeper yield curve, resilient credit quality, healthy earnings, and attractive capital returns, sentiment has shifted massively in their favor, lifting the sector to levels that were unthinkable not long ago. Dutch champion ING Groep ( ING ) hasn't missed out. With a weaker dollar kicking in some extra gains for good measure, ING's ADSs have returned over 90% since my last update a year ago. Rating it "Buy", I liked ING's capital returns story. While the company had already distributed much of its surplus, a 110 bps cushion over management's target level still augured well for dividends and buybacks, and with ING's shares trading on a single-digit price-to-earnings ratio, dividends and buybacks were all the investment case required. The company hasn't disappointed. ING ended up doing €7.3 billion in total distributions last year, mapping to a circa 16% yield compared to its starting market cap. ING's incredible run makes it a trickier call today. Despite not growing its bottom line last year, the bank has been executing well against its medium-term targets, and its outlook is decent. On the flip side, the shares have re-rated massively, leaving the value case less compelling than it was before. For that reason, I am shifting my rating to "Hold". Data by YCharts Executing Well ING made €6.33 billion in net profits last year. While down 1% on 2024, credit charges and the bank's net interest margin were lapping somewhat unfavorable prints early in the year. ING's fourth quarter performance was better, with net income rising 22% year-on-year to €1.41 billion. ING is executing well against the medium targets it set out in its 2024 Capital Markets Day ('CMD'). These goals included a relatively stable net interest margin, positive volume growth, and €5 billion in fee income by 2027. Alongside the pay-down of its excess capital, that was seen leading to a circa 1...
U.S. futures and Asian shares skidded Monday and oil prices fell more than $2 a barrel. In South Korea, the Kospi tumbled 4.6% to 4,982.54 as worries revived over a potential bubble in the craze for artificial intelligence. Samsung Electronics gave up 3.5%, while chip maker SK Hynix sank 5.6%. The Kospi has been forging records for weeks as major tech companies piggybacked on the AI craze with dea...
U.S. futures and Asian shares skidded Monday and oil prices fell more than $2 a barrel. In South Korea, the Kospi tumbled 4.6% to 4,982.54 as worries revived over a potential bubble in the craze for artificial intelligence. Samsung Electronics gave up 3.5%, while chip maker SK Hynix sank 5.6%. The Kospi has been forging records for weeks as major tech companies piggybacked on the AI craze with deals with major players like chip maker Nvidia. In other dealigns, the price of gold fell 1%, while silver gained more than 2% after both plunged on Friday in a halt to record runs in precious metals markets. Markets appeared jittery as investors studied what President Donald Trump’s new nominee to lead the Federal Reserve, Kevin Warsh, will mean for interest rates. The future for the S&P 500 sank 0.9% while that for the Dow Jones Industrial Average fell 0.5%. U.S. benchmark crude lost $2.80 to $62.41 per barrel. Speaking to reporters aboard Air Force One, Trump said Iran should negotiate a “satisfactory” deal to prevent the Middle Eastern country from getting any nuclear weapons. “I don’t know that they will. But they are talking to us. Seriously talking to us,” he said. That comment apparently assuaged some worries over potential disruptions to oil supplies that had pushed prices higher, analysts said. Brent crude fell $3 to $66.32 per barrel. In Tokyo, the Nikkei 225 index edged 0.2% higher to 53,422.01, but other regional benchmarks retreated. Hong Kong's Hang Seng dropped 2% to 26,841.45, while the Shanghai Composite index sank 1.1% to 4,071.14. In Australia, the S&P/ASX 200 fell 1.1% to 8,766.70. Taiwan's Taiex lost 2.1%. On Friday, the S&P 500 dropped 0.4% to 6,930.03. The Dow lost 0.4% to 48,892.47 and the Nasdaq composite lost 0.9% to 23,461.82. Helping to limit the market’s losses was Tesla, which rose 3.3%. It bounced back after dropping on Thursday despite delivering better profit reports for the latest quarter than analysts expected. Apple added 0.5% after the iP...
San Francisco Ends $5M-A-Year Program That Supplied Alcohol To Homeless Addicts Sigh. It's not parody. It's San Francisco. The city is shutting down a controversial program that used millions in taxpayer funds to provide alcohol to homeless residents struggling with addiction, according to the NY Post . Mayor Daniel Lurie said the city will end the Managed Alcohol Program, which cost about $5 mill...
San Francisco Ends $5M-A-Year Program That Supplied Alcohol To Homeless Addicts Sigh. It's not parody. It's San Francisco. The city is shutting down a controversial program that used millions in taxpayer funds to provide alcohol to homeless residents struggling with addiction, according to the NY Post . Mayor Daniel Lurie said the city will end the Managed Alcohol Program, which cost about $5 million each year and began during the COVID-19 pandemic. “For years, San Francisco was spending $5 million a year to provide alcohol to people who were struggling with homelessness and addiction — it doesn’t make sense, and we’re ending it,” Lurie told The California Post . The program was launched in April 2020, when the city placed unhoused residents in hotels during lockdowns. Medical staff supplied controlled amounts of beer and liquor to prevent dangerous withdrawal symptoms while stores and bars were closed. Although intended as a temporary measure, it continued for nearly six years. During its operation, the program served only 55 people, translating to an average cost of roughly $454,000 per client. Now, Lurie says the city has fully pulled its support. “We have ended every city contract for that program,” he said. Community Forward, the nonprofit that managed the initiative in recent years, confirmed that the city has terminated its funding. Financial records show the group received millions in public money, much of it spent on staff salaries. San Francisco’s program was the first of its kind in the United States, modeled loosely on similar efforts in Canada. Unlike other harm-reduction policies, such as needle exchanges, MAP directly supplied alcohol to people already dependent on it. Since taking office last year, Lurie has moved away from long-standing harm-reduction policies. He has also ended the distribution of drug-use equipment and pushed for stricter enforcement of street drug activity. “Under my administration, we made San Francisco a recovery-first city and...