William_Potter/iStock via Getty Images Investment Thesis This article continues my coverage of the iShares Core High Dividend ETF ( HDV ), which I put back on my watchlist in my last review on May 27, 2025. At the time, I expressed caution about its high-energy sector allocation, but ironically, that's the precise feature that's led to the solid returns we've seen this year. HDV is up 22.52% over ...
William_Potter/iStock via Getty Images Investment Thesis This article continues my coverage of the iShares Core High Dividend ETF ( HDV ), which I put back on my watchlist in my last review on May 27, 2025. At the time, I expressed caution about its high-energy sector allocation, but ironically, that's the precise feature that's led to the solid returns we've seen this year. HDV is up 22.52% over that period and has only recently given up its lead over the SPDR S&P 500 ETF ( SPY ). And that is the challenge of investing in dividend ETFs with high-energy sector exposure. Dividend investors often seek stability, but HDV's 22% exposure runs counter to that objective, so today, I'd like to evaluate HDV alongside three peers that also aim to combine dividends and stability, one of which I prefer most. As a result, I've assigned HDV a neutral "hold" rating, but I hope you enjoy reading about how the ETF works and some of the risks it faces, and I look forward to answering your questions in the comments afterward. HDV Overview: Strategy and Fund Facts According to its website and product brief , HDV seeks to track the Morningstar Dividend Yield Focus Index , which holds 75 high dividend-paying U.S. stocks. Per the product brief, "dividends have been a key driver of returns as well as an important source of income for many investors," and HDV offers cost-efficient access to a consistent, rules-based strategy with an expense ratio of just 0.08%. This low cost is important to dividend investors, as it indicates HDV shareholders will receive nearly all the distributions the fund receives. HDV, launched on March 29, 2011, has assets under management of $13.6 billion and has a trailing dividend yield of 2.89% as of June 10, 2026. The distribution frequency is quarterly, and all distributions are 100% QDI, per last year's tax summary by iShares. Prior year tax summaries indicate the same, such as this one from 2021 . In terms of strategy, the selection process starts with the Mor...
RHJ/iStock via Getty Images REalloys ( ALOY ) up 7.1% in Wednesday's trading after saying the Saskatchewan Research Council is expected to supply high-purity heavy rare earth materials to the company for qualification in Q4, ahead of the January 1, 2027, DFARS deadline, after which Chinese-origin rare earths become non-compliant for covered U.S . defense procurements. The SRC will produce high-pur...
RHJ/iStock via Getty Images REalloys ( ALOY ) up 7.1% in Wednesday's trading after saying the Saskatchewan Research Council is expected to supply high-purity heavy rare earth materials to the company for qualification in Q4, ahead of the January 1, 2027, DFARS deadline, after which Chinese-origin rare earths become non-compliant for covered U.S . defense procurements. The SRC will produce high-purity, magnet-grade dysprosium and terbium oxides, along with NdPr oxide, for REalloys ( ALOY ), which are expected to support the company's downstream metallization and permanent magnet manufacturing strategy centered on its Euclid, Ohio facility. REalloys ( ALOY ) has secured exclusive offtake for 80% of the commercial output from SRC's heavy rare earth separation and metallization facility, providing a unique North American source of Dy, Tb, and NdPr materials for downstream magnet manufacturing, with initial commercial production remaining on track for early 2027. " Through our partnership with SRC and our downstream metallization strategy in Ohio , we believe that REalloys is positioning itself to become a leading North American supplier of the heavy rare earth materials required for compliant defense supply chains," CEO Lipi Sternheim said. More on REalloys REalloys: A Bet On The U.S. Magnet Build-Out REalloys: Another All-American Magnet Company, But With Appealing Upside Potential Seeking Alpha's Quant Rating on REalloys
Russia restored access to Roblox Corp.’s gaming platform after concluding the company had complied with local legal requirements, according to Interfax. Roblox fully complied with Russian laws regarding user safety and the online gaming service is once again available throughout the country, the news service reported Wednesday, citing the Digital Ministry. Russia banned Roblox in December for inap...
Russia restored access to Roblox Corp.’s gaming platform after concluding the company had complied with local legal requirements, according to Interfax. Roblox fully complied with Russian laws regarding user safety and the online gaming service is once again available throughout the country, the news service reported Wednesday, citing the Digital Ministry. Russia banned Roblox in December for inappropriate content that communications watchdog Roskomnadzor said could “negatively impact the spiritual and moral development of children.” Russian officials held consultations with the platform’s owners and Roblox agreed to implement “a comprehensive set of measures to further protect children,” the Digital Ministry said, according to Interfax. Roblox also committed to combating “the spread of inappropriate content on the platform.” Earlier Wednesday the state-run Tass news service said that users already had access to Roblox. The Digital Ministry and Roskomnadzor had appealed the previous day to law enforcement agencies to lift the prohibition on the gaming platform.
Oksana Ermak/iStock via Getty Images Introduction At the end of 2025, I downgraded Chewy, Inc. ( CHWY ) to sell, with a price target of $30 . The stock was trading at a forward P/E of 64.2 while its underlying business was not growing accordingly. So, the setup seemed to be clearly pointing south. The stock did slide and trades now at $20, with little confirmation, as of now, that this could be, t...
Oksana Ermak/iStock via Getty Images Introduction At the end of 2025, I downgraded Chewy, Inc. ( CHWY ) to sell, with a price target of $30 . The stock was trading at a forward P/E of 64.2 while its underlying business was not growing accordingly. So, the setup seemed to be clearly pointing south. The stock did slide and trades now at $20, with little confirmation, as of now, that this could be, technically speaking, a bottom. So, while the market returned 8%, Chewy declined by 40%. It seems the destiny of many pandemic winners that are now suffering (have you looked at the 5-year graph for Nike or Zoom, just to name two big ones?). However, Chewy has just released its Q1 2026 earnings, and it beat estimates. It is then time to reassess whether the stock is still carrying the same degree of risk or not. Let me spoil it right away: I think the scenario is changing and that Chewy could deserve an upgrade. But let's look at the report step by step to see what I mean. Chewy's Q1 2026 Earnings Review Chewy reported quarterly net sales of $3.36B, representing a 7.7% YoY increase, with a gross margin expansion of 50 bps to 30.1%. Net income grew 51.9% to $94.8M, with a net margin expansion of 80 bps to 2.8%. The adjusted EBITDA was $253M, a 31.3% YoY growth with a margin expansion of 130 bps to 7.5%. So, we immediately have to admit that this is a margin inflection point, and I think this is the headline that matters the most. In fact, Chewy needs margin expansion to justify its multiples. CHWY Q1 2026 Earnings Presentation Now, margins can expand for many different reasons. In Chewy's case, we have three main drivers that are compounding. Firstly, active customer growth. This is not something that impacts only Chewy's volumes. When we read the 10-Q filing , we find that Chewy explains that the gross margin growth “is driven by growth in sponsored ads.” So, Chewy monetizes its active customers twice, both through sales and through ads. The second driver is the Autoship pro...
BeyondImages/iStock via Getty Images Brookfield Infrastructure Partners L.P. ( BIP ) and Brookfield Infrastructure Corporation ( BIPC ) could be set to form a healthy inflation hedge as price pressures shoot up and Treasury yields spike in tandem. BIPC is a C Corporation while BIP is a master limited partnership. There has been a broad increase in global price inflation on the back of the prolonge...
BeyondImages/iStock via Getty Images Brookfield Infrastructure Partners L.P. ( BIP ) and Brookfield Infrastructure Corporation ( BIPC ) could be set to form a healthy inflation hedge as price pressures shoot up and Treasury yields spike in tandem. BIPC is a C Corporation while BIP is a master limited partnership. There has been a broad increase in global price inflation on the back of the prolonged disruption to energy supplies from the closure of the Strait of Hormuz. This is bearish for fixed income as the U.S. 10-Year Treasury yield ( US10Y ) has moved up by around 60 basis points since the end of February. I've been buying BIPC and also adding to my position in its 5.0% Subordinated Notes due 05/24/2081 ( BIPH ). Why? BIP essentially has three levers for sustained organic growth, with inflationary indexation forming the biggest of these. The company is guiding for organic growth of around 6% to 9% per year, with revenues linked to inflation set to drive growth of around 3% to 4% this year. I last covered BIP with a Hold rating in March, with the stock up around 10% since. Brookfield Infrastructure Fiscal 2026 First Quarter Supplemental The key figure here is inflation, with the latest U.S. inflation print for April coming in hot at 3.8% . This was the highest reading since May 2023 and was up 50 basis points from March. Critically, it came above forecasts and was primarily driven by energy costs, which jumped by 17.9% . The bad news is that the Strait remains closed, so there is no clear timeline as to when this headwind will be addressed. This is what keeps me up at night, as I'm heavily invested in preferred shares and baby bonds. BIP's two preferred securities, the Series 13 ( BIP.PR.A ) and Series 14 ( BIP.PR.B ), have dipped from their 52-week high on the back of the surge in Treasury yields. The Series 13 preferreds pay out a $1.28125 annual coupon for a yield on cost of around 7.6% currently. As they're trading hands for $16.80 per share, prospective inve...
sanfel/iStock Editorial via Getty Images Tyler Technologies' ( TYL ) investor day earlier this week reinforced the belief that it is a “much stronger company” than it was just three years ago, investment firm BTIG said. “...TYL is a much stronger company than it was three years ago, operating in a durable and growing market with demand supported by structural tailwinds and multiple long-term growt...
sanfel/iStock Editorial via Getty Images Tyler Technologies' ( TYL ) investor day earlier this week reinforced the belief that it is a “much stronger company” than it was just three years ago, investment firm BTIG said. “...TYL is a much stronger company than it was three years ago, operating in a durable and growing market with demand supported by structural tailwinds and multiple long-term growth drivers across SaaS, transactions, M&A, and AI,” BTIG analyst Allan Verkhovski wrote in a note to clients. “A major operational theme was continued cloud migration and platform consolidation, with management indicating that some of the biggest benefits from version consolidation and single-version products should begin to accelerate in 2027 and beyond. That should support greater cross-sell and upsell opportunities while also driving better efficiency, especially with 30% of TYL’s development and support costs still tied to non-current product versions.” Verkhovski has a Buy rating and a $420 price target on Tyler Technologies. Delving deeper, Verkhovski said the company spent the time at the event highlighting its ability to cross-sell and retention upside in its software-as-a-service platform. Additionally, almost all of its 2030 financial targets were raised, including recurring revenue, which moved to $3.35B from $3.3B. Operating margins and free cash flow targets were also raised. “While TYL’s targeted 10%-12% organic recurring revenue CAGR does not include incremental AI revenue, we have greater appreciation for TYL’s ability to tap labor budgets,” Verkhovski explained. “AI remains very early in the public sector, but TYL is already seeing 40%+ and 110%+ uplifts from early customers adopting document automation and supervision assistant. We believe TYL exiting this year with 25 different agents in production, deployed across 100% of its flagships, is underappreciated given the pace of this market and leaves the company well- positioned to further monetize AI through...
Bill Pulte, Federal Housing Finance Agency director, speaks on CNBC, Jan. 8, 2026. CNBC President Donald Trump on Wednesday doubled down on his choice of Bill Pulte as acting director of national intelligence, despite bipartisan pushback on the pick that could result in the lapse this week of a foreign surveillance program with major national security implications. Earlier this month Trump tapped ...
Bill Pulte, Federal Housing Finance Agency director, speaks on CNBC, Jan. 8, 2026. CNBC President Donald Trump on Wednesday doubled down on his choice of Bill Pulte as acting director of national intelligence, despite bipartisan pushback on the pick that could result in the lapse this week of a foreign surveillance program with major national security implications. Earlier this month Trump tapped Pulte , who leads the Federal Housing Finance Agency and has used his perch to launch a series of probes into several of the president's political opponents over allegations of mortgage-related wrongdoing. The move drew swift criticism from both sides of the aisle and calls for Trump to ditch his choice of Pulte or quickly find a permanent replacement for the role. It also increased the odds that Section 702 of the Foreign Intelligence Surveillance Act , which allows the government to collect the communications of people outside the U.S., including when they are interacting with Americans, would expire at the end of the week as Democrats vowed to withhold their support. Read more CNBC politics coverage Trump family got about $500M from crypto venture — but investors saw steep losses Trump repeats claims that Iran deal is only 'days' away, despite recent strikes USDA Secretary Rollins calls Texas ag chief 'unserious' amid screwworm threat Trump nominates Todd Blanche for attorney general amid controversy over DOJ fund But Trump was apparently unfazed, attacking Democrats in a post on TruthSocial and calling for a short-term extension of the program. "Just like they did on Border Funding, the Radical Left Dumocrats are trying to take our National Security hostage because of unrelated issues. They should stop playing politics with the safety of our Great Country," Trump posted. In the post, Trump said he is looking for a permanent DNI nominee, but in the meantime Pulte would take over on June 19. Trump said he'd asked Pulte "to execute the immediate and needed downsizing of th...
da-kuk/E+ via Getty Images Three months ago, GPUs were all the rage, and the idea that CPUs could challenge GPUs when it comes to AI budgets was unfathomable. The shift in this perception is evident not only in management commentary, but also in CPU design companies and OEMs raising forecasts that are now 2X+ higher, as many of the largest players have stated they did not foresee the magnitude of ...
da-kuk/E+ via Getty Images Three months ago, GPUs were all the rage, and the idea that CPUs could challenge GPUs when it comes to AI budgets was unfathomable. The shift in this perception is evident not only in management commentary, but also in CPU design companies and OEMs raising forecasts that are now 2X+ higher, as many of the largest players have stated they did not foresee the magnitude of the surge in CPU demand from agentic AI. In just six months, Advanced Micro Devices ( AMD ) has issued a massive increase to its server CPU market forecast, nearly doubling its expected CAGR to 35%—estimating that the market will eclipse $120 billion by 2030. Arm Holdings ( ARM ) made a similar announcement in March, projecting that the total addressable market (TAM) for data center CPUs will grow to over $100 billion by its fiscal year 2031 (roughly calendar year 2030). This would represent a more than 4X increase over its current TAM estimate of $24 billion, equating to a 33% CAGR. An important shift is driving these forecasts as the AI market transitions away from chatbots, which saw a CPU-to-GPU ratio that was heavily weighted toward GPUs from 2023-2025. As we move into agentic AI, an Intel ( INTC ) and Georgia Tech paper has stated that “tool-dominated agentic AI workloads are significantly bottle-necked" with CPUs consuming up to 88% of the end-to-end latency. The paper further concludes that “with better quality GPUs, the bottleneck can swiftly shift more towards CPUs.” What Intel and Georgia Tech are referring to, is that to scale agentic AI efficiently, CPU orchestration capacity will need to catch up to GPU reasoning capacity to minimize latency and prevent GPU underutilization. The answer to this problem is increasing the CPU-to-GPU ratio in AI clusters to keep token costs down. Below, I break down why CPUs are positioned to take a larger share of AI cluster bill of materials (BOM) and the explosion in demand we are already seeing. I examine server CPU forecasts ...
da-kuk/E+ via Getty Images Three months ago, GPUs were all the rage, and the idea that CPUs could challenge GPUs when it comes to AI budgets was unfathomable. The shift in this perception is evident not only in management commentary, but also in CPU design companies and OEMs raising forecasts that are now 2X+ higher, as many of the largest players have stated they did not foresee the magnitude of ...
da-kuk/E+ via Getty Images Three months ago, GPUs were all the rage, and the idea that CPUs could challenge GPUs when it comes to AI budgets was unfathomable. The shift in this perception is evident not only in management commentary, but also in CPU design companies and OEMs raising forecasts that are now 2X+ higher, as many of the largest players have stated they did not foresee the magnitude of the surge in CPU demand from agentic AI. In just six months, Advanced Micro Devices ( AMD ) has issued a massive increase to its server CPU market forecast, nearly doubling its expected CAGR to 35%—estimating that the market will eclipse $120 billion by 2030. Arm Holdings ( ARM ) made a similar announcement in March, projecting that the total addressable market (TAM) for data center CPUs will grow to over $100 billion by its fiscal year 2031 (roughly calendar year 2030). This would represent a more than 4X increase over its current TAM estimate of $24 billion, equating to a 33% CAGR. An important shift is driving these forecasts as the AI market transitions away from chatbots, which saw a CPU-to-GPU ratio that was heavily weighted toward GPUs from 2023-2025. As we move into agentic AI, an Intel ( INTC ) and Georgia Tech paper has stated that “tool-dominated agentic AI workloads are significantly bottle-necked" with CPUs consuming up to 88% of the end-to-end latency. The paper further concludes that “with better quality GPUs, the bottleneck can swiftly shift more towards CPUs.” What Intel and Georgia Tech are referring to, is that to scale agentic AI efficiently, CPU orchestration capacity will need to catch up to GPU reasoning capacity to minimize latency and prevent GPU underutilization. The answer to this problem is increasing the CPU-to-GPU ratio in AI clusters to keep token costs down. Below, I break down why CPUs are positioned to take a larger share of AI cluster bill of materials (BOM) and the explosion in demand we are already seeing. I examine server CPU forecasts ...